4 American Electric Bike Stocks to Buy
During the COVID-19 pandemic, people were locked indoors for months on end. With limited gym access, many people started riding bikes to stay in shape. Going for a bike ride was also one of the few socially-distant ways to get out of the house. This trend resulted in a whopping 230% increase in electric bike sales during 2020. Many analysts expect this consumer behavior shift to continue for years to come. Due to this, investors are scrambling to find potential electric bike stocks to buy.
Unfortunately, pure electric bike stocks are a little tough to come by. Most bicycle brands are part of much larger conglomerates. Additionally, most of these companies are based in other countries. This means that their stock trades on foreign exchanges. When it comes to U.S. based electric bike companies, almost all of them are private. However, there are still a few potential electric bike stocks out there. Buying these can help you take advantage of this growing electric bike trend.
Let’s take a look at a few electric bike stocks to buy heading into 2022.
NOTE: I’m not a financial advisor and am just offering information and commentary. Please do your own due diligence before making any decisions.
Electric Bike Stocks to Buy
No. 4 Uber (NYSE: UBER)
Uber is most well-known for essentially creating the ridesharing business. In fact, it’s one of the few companies in the world that has turned into a verb. However, Uber’s core business is shockingly unprofitable. In 2019, it reported an impressive loss of $8.51 billion. Tough competition and political pushback have forced Uber to search for other revenue opportunities. So far, it’s had success with its Uber Eats delivery service. Now, Uber may be thinking about expanding its bike business as well.
Uber classifies as an electric bike stock because it already offers electric bike rentals. Previously, it owned Jump Bikes. However, it has since taken a 31% ownership stake in Lime. In the short term, it plans to transfer its bike division to Lime. From there, the two companies will integrate their apps together. Moving forward, there is a chance that Uber will buy Lime completely between 2022 and 2024.
Since electric bikes can be fairly pricey, many consumers may end up choosing to rent. This is especially true for consumers in urban areas. Why lug an electric bike up an apartment building when you could just rent a Lime Bike for an hour?
This electric bike stock is down 20% so far in 2021. It’s also down 1% over the past five years.
No. 3 Lyft (Nasdaq: LYFT)
When it comes to ridesharing, Uber definitely has Lyft beat. However, Lyft might actually be the preferable electric bike stock. Lyft’s bike-sharing business is fairly young but is expanding rapidly. Currently, you can find Lyft bikes in Chicago, New York City, San Francisco, Boston, Columbus, Denver, Washington D.C., Los Angeles, Minneapolis and Portland.
Lyft has expanded its program so rapidly by partnering with existing bike-sharing companies. A few of its partnerships include Citi Bike, Ford GoBike, Divvy, and Bluebikes. In San Francisco, Lyft has taken its electric bike business one step further. In June 2021, it launched its own line of electric bikes that integrate with the city’s public transportation card, Clipper. This means that SF citizens can use the same metro card for trains, buses, and (now) Lyft bikes.
Ridesharing companies are known for butting heads with the government. In the past, Uber and Lyft have tended to act first and ask questions later. This brashness generally creates a bit of tension between the companies, city governments, and citizens. However, this new partnership is a sign of maturity for Lyft. If it is successful, it could help Lyft build credibility to launch similar programs in other cities.
Lyft’s stock is down 14% so far in 2021. It’s also down 48% so far over the past five years.
No. 2 Bird (NYSE: BRDS)
This electric bike stock just recently went public in late 2021. In fact, many people might not even be aware that Bird is now a publicly-traded company. If you’re not familiar, Bird is best known for its electric scooter ridesharing business. Bird has also pioneered the phrase “micro-mobility”. Its mission is to encourage clean, car-free travel alternatives. To do this, it operates electric scooter fleets in 350 cities around the globe. Now, it’s looking to expand its business even further.
There are two reasons that Bird can be considered an electric bike stock. First, it offers an electric bike for sale on its website. The BirdBike sells for $2,299. Second, it offers Bird Bikeshare. This is Bird’s brand new electric bike-sharing business that appears similar to what Uber and Lyft offer. As it’s very new, there is very little information available about this service. However, keep in mind that Bird was one of the fastest companies to reach a $2 billion valuation. Its management team has a history of moving quickly and efficiently. If you are looking for a potential electric bike stock to buy in 2022, Bird could be a great choice.
Bird’s stock is down 8% since going public in late 2021.
Electric Bike Stocks No. 1 Harley Davidson (NYSE: HOG)
This final electric bike stock might be a little bit of a surprise. This is because Harley Davidson is one of the largest producers of gasoline-powered motorcycles. However, this motorcycle company just recently launched LiveWire, an all-electric motorcycle. Technically, this classifies Harley Davidson as an electric bike stock.
Please note that Harley Davidson plans to spinoff LiveWire into its own company. This will make LiveWire the first publicly-traded electric motorcycle company in the United States. Right now, LiveWire’s are still for sale on Harley Davison’s website. If you plan on investing, keep an eye on more news about LiveWire being spun off.
Harley Davidson decided to spinoff LiveWire mainly because the company is already going through a major turnaround to its core business. The added pressure of launching a new product line might be too much. Turning LiveWire into its own company will give it the freedom it needs to grow.
Currently, Harley Davidson forecasts sales of over 100,000 electric bikes generating. This should generate revenue of $1.77 billion in 2026. By 2030, it expects to sell about 190,000 EVs. This should generate $3 billion in revenue.
Always pay attention to cult brands
There is one reason that Harley Davidson could become a top electric bike stock to buy. This is because of the strength of its brand. This company has been around for over 100 years and has a cult following. It is considered one of the top motorcycle companies in the world. It is also one of just a few brands that you regularly see tattooed on people’s bodies. However, over the past few years, it has fallen on tough times.
Harley Davidson is a huge producer of gas-guzzling motorcycles. This traditional model has not done much to attract younger, more eco-friendly buyers. As its core demographic keeps aging, sales have slowed. A transition to electric motorcycles could be just what it needs to appeal to younger riders. If LiveWire is a success, don’t be surprised if Harley Davidson quickly becomes relevant again.
Harley Davidson’s stock is down 2% so far in 2021. It’s also down almost 40% over the past five years.
I hope that you’ve found this article valuable when it comes to learning a few of the best electric bike stocks to buy. Please base all investment decisions on your own due diligence and risk tolerance.
About Teddy Stavetski
A University of Miami grad, Teddy studied marketing and finance while also playing four years on the football team. He’s always had a passion for business and used his experience from a few personal projects to become one of the top-rated business writers on Fiverr.com. When he’s not hammering words onto paper, you can find him hammering notes on the piano or traveling to some place random.