Harley-Davidson LiveWire's IPO First Day: A 'Gloomy Initiation'

Electric Motorcycle Becomes First to List on US Stock Market

(Photo by Reuters)

[Asia Economy Reporter Yujin Cho] LiveWire, Harley-Davidson's electric motorcycle division, which became the first in the electric motorcycle industry to be listed on the US stock market, plunged on its first day of trading.

On the 27th (local time), LiveWire, the electric motorcycle business unit of Harley-Davidson, closed lower on its first day of listing on the New York Stock Exchange (NYSE).

LiveWire surged up to 24% in the morning session right after the opening but turned to a downward trend in the afternoon, giving back most of its gains and closing down 12.14%.

LiveWire was listed through a reverse merger with a SPAC (Special Purpose Acquisition Company) called AEA Bridge Impact and is traded on the NYSE under the ticker symbol 'LVWR'.

Although LiveWire holds the title of being the 'first electric motorcycle company' to list on the US stock market, it did not enjoy the premium typically associated with a first listing.

Experts analyzed that the background of the stock price weakness was due to ongoing economic recession caused by high interest rates and inflation, which is expected to dampen demand for expensive electric motorcycles.

Jamie Kates, senior analyst at Morningstar, said, "To cope with high inflation rates of 8-9% next year, Americans will prioritize buying groceries over expensive electric motorcycles."

The price of electric motorcycles launched by LiveWire ranges from $16,999 to $22,799.

Johan Zeitz, CEO of Harley-Davidson, said, "Like other automotive industries, we are facing supply chain issues, but the significant increase in profit margins will have a positive effect on market evaluation."

After entering the electric motorcycle business in 2019, Harley-Davidson expanded into electric bicycles as a countermeasure when the market size shrank due to the aging of its core customer base, the baby boomer generation.

At the investor day held in May, company management announced plans to increase electric bicycle sales to over 100,000 units by 2026.

This content was produced with the assistance of AI translation services.