Harley-Davidson Inc spun off its electric motorcycle division, LiveWire, on Tuesday in a deal that created the first publicly traded electric motorcycle company in the United States.
New shares of LiveWire Group Inc, the former electric motorcycle subsidiary of Harley-Davidson, fell 1.3% in afternoon trading after making its US market debut, following the $1.77 billion merger. unit dollars with a blank check signature.
Last year, the electric vehicle unit agreed to merge with special purpose acquisition (SPAC) company AEA-Bridges Impact Corp IMPX.N.
AEA-Bridges shareholders approved the merger last week. The acquisition was originally expected to close in the first half of the year.
“I think there was probably a more optimal time to do this,” said Jaime Katz, senior equity analyst at Morningstar. “Maybe there was something that facilitated the actual execution that was like now or never.”
At its investor day in May, company executives forecast unit sales volume of more than 100,000 electric motorcycles by 2026. Like other automakers, the company has faced supply chain issues, which it has affected their ability to keep showrooms stocked during peak driving season.
Harley CEO Jochen Zeitz said in an interview with CNBC that the world’s largest motorcycle manufacturer has secured the supply of its electric motorcycles for “the next few years”.
Harley launched its first electric motorcycle, the LiveWire in 2019, before deciding to relaunch it under its own sub-brand. Hoping to regain lost market share as its baby boomer customer base ages and interest in recreational motorcycling wanes, the Milwaukee-based company is looking to become more competitive with other automakers. electric motorcycles.
LiveWire has an electric motorcycle model starting at $16,999 and another at $22,799. Harley-Davidson will have majority ownership of LiveWire with a 74% stake.
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