There will soon be a new competitor in the electric vehicle market, and this one will not be the four-wheeled variety. This week, Harley-Davidson Inc (NYSE: HOG) announced it plans to have a fully electric motorcycle on the market within 18 months, but investors weren’t particularly impressed by the news.
In Harley-Davidson’s fourth-quarter earnings report on Tuesday, the company says its electric motorcycle technology is a key part of its push to inspire a younger generation of customers.
“The EV motorcycle market is in its infancy today, but we believe premium Harley-Davidson electric motorcycles will help drive excitement and participation in the sport globally,” CEO Matt Levatich says. “As we expand our EV capabilities and commitment, we get even more excited about the role electric motorcycles will play in growing our business.”
It has now been four years since Harley-Davidson unveiled its LiveWire electric motorcycle prototype in 2014. The LiveWire had a 50-mile charge range and could accelerate from 0 to 60 mph in 4 seconds.
Harley-Davidson plans to invest between $25 and $50 million on electric motorcycle technology in coming years in an attempt to capture market share. Competitor BMW already sells the electric C Evolution e-Scooter in Europe.
Harley-Davidson is looking for an electric spark after struggling with declining sales in recent years. The company’s global motorcycle sales were down another 9.6 percent in the fourth quarter and 6.7 percent for the full year. In an effort to cut costs, Harley-Davidson also announced this week it would be closing a factory in Kansas City and cutting about 260 jobs.
“Our data suggests the younger Gen Y population is adopting motorcycling at a far lower rate than prior generations,” Beckel said, according to CNBC.
Harley-Davidson stock traded lower by 8 percent on Tuesday and is now down 21.2 percent in the past three years.
Morningstar analyst Jaime Katz says HOG investors should expect more of the same from the company in 2018.
“The outlook for 2018 remains tough, with shipments set to contract more than 3 percent at the midpoint of guidance from 241,498 shipments in 2017,” Katz says. “We plan…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!
