Italian EV Motorcycle Maker Has Filed for Bankruptcy

• EV motorbike maker Energica files for bankruptcy in its home country, citing difficulties in the electric motorcycle market as well as a decline in investment.

• The motorcycle manufacturer, which developed a lineup of electric bikes over the course of a decade, has also cited the downturn in the supply chain over the past several years.

• The company's board of directors decided on liquidation, after examining alternatives earlier this month.

Italian electric motorcycle manufacturer Energica, founded in 2014, had built up an impressive lineup in a short period of time, securing a foothold in a rapidly evolving segment.

But despite fielding a number of impressive models including the Experia, the startup's fortunes have been trending downward in recent months.

This month, after examining alternatives, the company's board of directors voted to enter what it called a bankruptcy judicial liquidation.

What has prompted this turn of events?

Energica has been on shaky footing for some time despite seeing gains in revenues and attracting a takeover from US-based Ideanomics, Inc, in March 2022, but has seen little investment since amid major operational costs.

"However, the subsequent crisis in the electric market and the decline in sector investments impacted Ideanomics, and consequently, compromised Energica's investment capabilities," Energica said in a statement.

"The company has also faced challenges from the downturn in the automotive market and supply chain, being particularly affected as a small and medium-sized enterprise."

Energica has also faced issues inherent to the EV motorcycle market, which remains rather limited despite the variety of models that are available at the moment, with the current offerings still effectively sharing a limited buyer base.

Even if the timing of its filing may have been a surprise, the company was seen as being on a particularly troubling trajectory for a few years.

"In the last two years, some employees have voluntarily left the company; these professionals have since been absorbed by major players in the Motor Valley," the company noted.

Over the past decade the company had developed four electric motorcycle platforms, offering batteries as large as 21.5 kWh with 248.5 miles of range, giving EV bike shoppers plenty of variety in several classes.

But its revenues remained rather limited, even for a small operation.

In 2022, Energica reported revenues of €13 million ($14 million), which actually represented a 200% increase over the previous year, pointing to a certain demand ceiling even amid greater EV bike adoption.

Energica continued to innovate all through the pandemic years, introducing new tech including the powerful 169-hp EMCE motor engineered with partner firm Mavel.

But market pressures, in addition to the stresses on supply chains in the pandemic, had also taken their toll, with the company parting with significant numbers of workers over the past two years.

Will even a quarter of new motorcycle sales be electric by 2030, or will the two-wheeled category hang on to internal combustion longer than cars? Let us know what you think in the comments below.