During the COVID-19 pandemic, people have been locked indoors for months. With limited access to the gym, many people have taken up cycling to stay in shape. Going for a bike ride was also one of the few socially distanced ways to get out of the house. This trend has led to a massive 230% increase in e-bike sales in 2020. Many analysts expect this shift in consumer behavior to continue in the years to come. For this reason, investors are scrambling to find potential e-bike stocks to buy.
Unfortunately, pure e-bike stocks are a bit hard to come by. Most bike brands are part of much larger conglomerates. Moreover, most of these companies are based in other countries. This means that their shares are traded on foreign markets. When it comes to US-based e-bike companies, almost all of them are private. However, there are still a few potential e-bike stocks. Buying these can help you take advantage of this growing e-bike trend.
Let’s take a look at some e-bike stocks to buy by 2022.
NOTE: I am not a financial adviser and merely offer information and commentary. Please do your own due diligence before making any decisions.
Stocks of electric bikes to buy
Uber #4 (NYSE: UBER)
Uber is best known for essentially creating the ride-sharing industry. In fact, it is 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. Fierce competition and political backsliding have forced Uber to look for other revenue opportunities. So far, he’s had success with his Uber Eats delivery service. Now Uber may also be planning to expand its bicycle business.
Uber ranks as an e-bike stock because it already offers e-bike rentals. Previously, she owned Jump Bikes. However, he has since taken a 31% stake in Lime. In the short term, it plans to transfer its bicycle division to Lime. From there, the two companies will integrate their apps together. Going forward, it is possible that Uber will completely buy Lime between 2022 and 2024.
Since e-bikes can be quite expensive, many consumers may end up choosing to rent. This is especially true for consumers in urban areas. Why lug an e-bike around a building when you could just rent a Lime Bike for an hour?
This e-bike stock is down 20% so far in 2021. It’s also down 1% over the past five years.
Lyft No. 3 (Nasdaq: LYFT)
When it comes to ridesharing, Uber definitely beat Lyft. However, Lyft might actually be the preferable e-bike stock. Lyft’s bike-sharing business is fairly young but growing rapidly. Currently, you can find Lyft bikes in Chicago, New York, San Francisco, Boston, Columbus, Denver, Washington DC, Los Angeles, Minneapolis, and Portland.
Lyft expanded its program so quickly by partnering with existing bike-sharing businesses. A few of its partnerships include Citi Bike, Ford GoBike, Divvy, and Bluebikes. In San Francisco, Lyft has taken its e-bike business a step further. In June 2021, it launched its own line of e-bikes that integrate with the city’s public transit card, Clipper. This means SF citizens can use the same subway card for trains, buses, and (now) Lyft bikes.
Ride-sharing companies have been known to clash with the government. In the past, Uber and Lyft tended to act first and ask questions later. This audacity usually creates a bit of tension between businesses, municipal governments and citizens. However, this new partnership is a sign of maturity for Lyft. If 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.
Bird #2 (NYSE:BRDS)
This e-bike stock was just released to the public at the end of 2021. In fact, many people might not even know that Bird is now a publicly traded company. If you’re unfamiliar, Bird is best known for its electric scooter ride-sharing business. Bird also pioneered the term “micro-mobility”. Its mission is to encourage clean, car-free travel alternatives. To do this, it operates fleets of electric scooters in 350 cities around the world. Now he is looking to expand his business even further.
There are two reasons why Bird can be considered stock e-bikes. First, it offers an electric bike for sale on its website. The BirdBike retails for $2,299. Second, it offers Bird Bikeshare. This is Bird’s newest e-bike sharing venture that seems similar to what Uber and Lyft offer. As it is brand 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 is used to acting quickly and efficiently. If you’re looking for potential e-bike inventory to buy in 2022, Bird could be a great choice.
Bird’s stock is down 8% since its IPO in late 2021.
#1 Harley Davidson Electric Bike Stocks (NYSE:HOG)
This latest e-bike stock might come as a bit of a surprise. Indeed, Harley Davidson is one of the largest producers of gasoline-powered motorcycles. However, this motorcycle company has just launched LiveWire, an all-electric motorcycle. Technically, this classifies Harley Davidson as stock e-bikes.
Please note that Harley Davidson plans to turn LiveWire into its own company. This will make LiveWire the first publicly traded electric motorcycle company in the United States. Currently, LiveWires are still for sale on the Harley Davison website. If you’re considering investing, keep an eye out for more information on the LiveWire spin-off.
Harley Davidson decided to create LiveWire primarily because the company is already going through a major turnaround in its core business. The added pressure of launching a new product line might be too much. Turning LiveWire into her own business will give her the freedom she needs to grow.
Currently, Harley Davidson expects sales of over 100,000 e-bikes generating. This is expected to generate revenues of $1.77 billion in 2026. By 2030, it expects to sell around 190,000 electric vehicles. This should generate $3 billion in revenue.
Always pay attention to cult brands
There’s a reason Harley Davidson could become one of the best electric bike stocks to buy. This is because of the strength of its brand. This company has been around for over 100 years and is cult. It is considered one of the best motorcycle companies in the world. It’s also one of the few marks you regularly see tattooed on people’s bodies. However, in recent years, he has had some tough times.
Harley Davidson is a huge producer of gas-guzzling motorcycles. This traditional model has done little to attract younger, more eco-friendly buyers. As its core demographic continues to age, sales have slowed. A transition to electric motorcycles might be just what it needs to appeal to young riders. If LiveWire is a success, don’t be surprised if Harley Davidson quickly becomes relevant again.
Harley Davidson stock is down 2% so far in 2021. It’s also down nearly 40% over the past five years.
I hope you found this article helpful in learning some of the best e-bike stocks to buy. Please base all your investment decisions on your own due diligence and risk tolerance.
A graduate of the University of Miami, Teddy studied marketing and finance while playing four years on the football team. He has always had a passion for business and has used his experience from a few personal projects to become one of the top rated business writers on Fiverr.com. When he’s not pounding words on paper, you can find him pounding notes on the piano or traveling to a random location.