Italian e-bike maker goes bust

Italy’s Energica, a manufacturer of electric performance motorbikes, has filed for bankruptcy.

The firm was officially funded in 2014 but had a design phase stretching back to 2009. In 2016, it listed on the Aim Italia market (now Euronext Growth Milan) with a capitalisation of €37.3mn ($40.6mn). in early 2022, the firm was taken private again by its 75pc owner, US commercial EV firm Ideanomics.

But it says “the subsequent crisis in the electric market and the decline in sector investments impacted Ideanomics, and consequently, compromised Energica’s investment capabilities”. The downturn in the automotive market and supply chain has also challenged Energica, which is “particularly affected as a small and medium-sized enterprise”.

Energica’s management has been “actively and extensively pursuing a search for new investors”, with the aim of preserving a going concern. But it “has become clear” that these alternative options are no longer viable, leading to the bankruptcy filing.

Deserved better

Carlo Iacovini, who served for two years as general manager of Energica Inside, the firm’s powertrain and batteries arm, calls its demise the “premature end of a journey that deserved a different outcome”.

“Energica's liquidation is not just about one company—it reflects a broader, more troubling reality,” Iacovini continues. “We are at a moment in the electric vehicle industry where scepticism is giving way to opportunity, yet it is precisely during this time that many early-stage companies are struggling.

“The challenge is not demand; it is capital. These companies need significant investment to industrialise their products and drive down costs to compete in a market still dominated by traditional players. Without the financial muscle to survive this plateau, where electric vehicles are just on the cusp of mass adoption, even the most innovative companies are left vulnerable.

“Energica’s story is a painful reminder that, while the market for electric vehicles grows — less than forecasted, but still growing — only those with large financial backing can survive this challenging phase. Major brands with deep pockets are feeling the same pressure, but they have the resources to weather it,” he concludes.