Biden's $89 million investment fails to boost Harley-Davidson's electric motorcycle sales

In 2024, President Joe Biden's Energy Department awarded $1.7 billion in grants aimed at boosting domestic manufacturing of electric vehicles, with a notable portion of $89 million allocated to Harley-Davidson to enhance its motorcycle production capabilities for electric models in Pennsylvania. The funding was intended to strengthen competitiveness in the automotive industry and help meet production goals for zero-emission motorcycles. However, as of second quarter 2025, there are signs that this investment is not yielding the expected results. LiveWire, the company formed from Harley-Davidson dedicated to electric motorcycle production, has only managed to sell a mere 55 electric motorcycles during this period, indicating a 65 percent decline compared to the previous year, as well as generating just $800,000 in revenue from electric motorcycle sales alone. The total consolidated revenue for LiveWire in this quarter amounts to $5.9 million, a stark decrease from its peak revenue of $46.83 million in 2022. This downward trend continued as annual revenue has dropped by 43 percent over the last two years, casting doubt on the viability of the investment and overall strategy regarding electric motorcycle production. Despite initially projecting sales of up to 3,000 motorcycles, the reality reflects a significant miss in sales targets, with only 2,418 units sold since LiveWire's inception in 2021. In light of ongoing financial struggles, LiveWire has set another sales projection of 1,000 to 1,500 for 2025, indicating a persistent inability to meet market expectations. Additionally, issues such as trade tariffs imposed by President Donald Trump have further complicated the financial landscape for Harley-Davidson, leading to a 19 percent revenue decline year-over-year and significant shipment drops. Harley-Davidson's plans to build three battery factories in Tennessee and Kentucky have also faced setbacks, with only one factory constructed thus far and the promise of battery production yet unfulfilled. The overall outcome reveals a tough environment for electric motorcycle initiatives, largely attributed to a combination of missed sales targets, external economic pressures, and governmental support that has yet to translate into a sustainable business model for LiveWire and Harley-Davidson's electric motorcycle aspirations.