Energica Goes Bankrupt, EV Bike Dreams Now Come To A Screeching Halt
Electric motorcycle brand Energica is now another casualty of the electric revolution
Energica Motor Company SpA, a high-performance electric motorcycle manufacturer, predominantly controlled by American fund Ideanomics Inc., has announced that its Board of Directors convened on 14 October 2024, and resolved to enter bankruptcy judicial liquidation in accordance with the relevant insolvency laws.
Founded in 2014, with design efforts commencing in 2009, Energica has spent over 15 years establishing itself as a leader in high-performance electric mobility, showcasing resilience and innovation in a rapidly evolving industry.
Moreover, the company’s primary asset, its technical expertise, has enabled it to launch four technological platforms and serve as the Unique Manufacturer for the MotoGP electric category, the FIM Enel MotoE World Cup, for four consecutive years. Notably, despite the global pandemic’s challenges, Energica recorded unprecedented sales and revenue figures following the introduction of its Experia model.
The entrepreneurial journey began with the support of founding partners, who sought to secure growth capital by listing the company on AIM Italia (now Euronext Growth Milan) in 2016. Energica entered the market with a capitalization of €37.3 million (roughly RM175,043,260).
The partnership with Ideanomics in 2021 also marked a significant milestone, culminating in the successful launch of the Experia, which propelled sales to €13 million (about RM61,013,905), an impressive 200 percent increase compared to the previous year. In March 2022, Ideanomics completed a voluntary takeover bid, transforming Energica into a private entity.
On top of that, this transition was intended to enhance the company’s flexibility in financial management and growth strategies. However, subsequent downturns in the electric vehicle market and reduced sector investments adversely affected Ideanomics, which, in turn, limited Energica’s investment capabilities.
The company also contended with broader challenges within the automotive sector and supply chain disruptions, especially as a small and medium-sized enterprise. Despite these obstacles, Energica remained committed to its mission, exemplified by initiatives like a solidarity contract to protect its workforce during tough times.
Recently, after extensive efforts to attract new investors to ensure business continuity and protect creditor interests, it became evident that viable options were exhausted. Consequently, the Board opted for bankruptcy judicial liquidation, aiming to repay creditors as effectively as possible based on the proceeds from asset liquidation.
So is this a sign that the “electric revolution” was never the right way and that perhaps electric mobility was never as sustainable as we were led to believe?
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