Energica is gone!
It's not the first, it would not be the last
This week, we wanted to discuss KTM's new TFTs and their implications for the EV world, but events from Tuesday forced us to write about Energica instead.
On Tuesday evening, we put this on our X/Twitter feed (please connect with us on X at @editor_ev)
The Italian electric superbike manufacturer filed for bankruptcy on Tuesday. While sales volumes may have stayed low, Energica’s contribution to E2Ws went beyond the numbers, or the lack thereof.
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Unlike normal bankruptcy processes, where the bankers start looking for buyers after entering bankruptcy protection, the Energica Board has decided to liquidate all the assets. That means that unlike Cake, which filed for bankruptcy, found a buyer, and returned in some form, Energica is headed for the history books now.
The board’s hand was probably forced because Energica had already been under some kind of bankruptcy protection for a few months. According to Italian news outlet Cronaca, Italy's Istituto Nazionale della Previdenza Sociale (Social Security Institute) had been directly paying the salaries of Energica workers under a ‘solidarity contract’ for the last few months. This means the company had already run out of resources. The social security protection contract was set to expire on 22nd Oct, and workers were already agitating outside the Soliera factory gates. Energica was forced to find a solution before that.
We also heard that Energica's majority (75 percent) shareholder, PE fund Ideanomics, and the company itself had been looking for buyers or investors. However, Europe and North America have seen a shift in sentiment away from EVs. While that may be true for EV cars, it also impacts investments in the starved electric motorcycle industry.
The problems with Energica represent how difficult life is at the top end of the electric motorcycle spectrum. Building high-performance electric motorcycles is not easy, both technologically and monetarily. Energica manufactured some good-looking motorcycles, but sales never took off.
The Italian electric sports bike manufacturer was also representative of the constant hunt for funds that manufacturers like Damon Motorcycles, Lightning, and Zero must do to continue the development of new products, even when sales remain depressing.
In previous posts, we have discussed in detail why it is very difficult to engineer a high-performance, full-size electric motorcycle to rival existing ICE motorcycles. Battery tech hasn’t yet reached a point where we can get sufficient range to deliver ICE-like flexibility without making the motorcycles overweight. Everyone is trying, but the electric motorcycle design is like a jelly—poke it from one side, and the other loses shape.
Energica: The story
Energica was born as part of the CRP group, which is interested in additives and 3D-printed parts. In 2010, the group designed a concept electric motorcycle—eCRP—that they presented at the Cleaner Racing Conference in Birmingham that year. Energica owed its existence to the ECRP 1.0 project.
Energica came into existence in 2014 with the launch of the first model, the Ego sports bike. The group had spent nearly five years before that to design the platform. The same platform would then create the Eva naked sports bike. Both carried a 13.4kWh battery and promised a 150km range.
Later, in 2017, Energica also created the EsseEsse9, a retro-naked motorcycle on the same platform. The three models will start series production in 2016.
The company would also be listed on the Alternative Investment Market (AIM) Italia stock exchange. It was a big deal back then as Energica was only the second (after Tesla) EV manufacturer worldwide to be traded on a stock exchange.
Energica’s biggest contribution to the electric two-wheeler industry was becoming the sole supplier for the FIM Enel MotoE World Cup championship, essentially the electric equivalent of the MotoGP championship.
Energica conceptualized most of what we see of MotoE today. The four-year relationship would end in 2021, with Ducati taking over as the sole supplier.
In 2019, Energica will also introduce the larger 21.5 kWh battery pack, increasing the claimed range to 400km.
In 2021, Energica partnered with Italian supplier Marvel to develop a new high-speed motor. The EMCE (Energica Mavel Co-Engineering) motor would deliver 126kW (up from 107kW earlier) while making the motorcycles up to 10kg lighter.
Limited sales meant that Energica kept on seeking large investors. In March 2021, US-based Shane McMahon-led PE fund Ideanomics stepped in as an investor by acquiring a 25 percent stake. This would be increased to 75 percent soon, making the US group the new owners of Energica.
The investment from Ideanomics would enable Energica to develop a new product line - the Experia ADV touring motorcycle. This increased the range to four models over two platforms. The Experia came with a 21.5kWh battery and the EMCE motor.
Were sales bad?
Energica didn’t always report sales numbers, but good estimates are available. Sales started in 2017/18 at around 150 units per year and improved to 250 units soon after. 2022 was the best year ever, and Energica reported sales revenues of EUR 13 million. This gives us an estimate of 2022 sales to be less than 1000 motorcycles.
This was, at best, a boutique operation with a rather wide portfolio.
Following Ideanomics's investment in 2021, Energica had access to some capital and could fund the development of the Experia ADV tourer. The Experia helped sales in 2022, as the other models had already started looking dated.
Energica’s Impact on the E2W Industry
Energica was one of the first entrants in the electric high-performance motorcycle market. They modeled themselves after Ducati, another Italian icon. The portfolio was all high-performance machines with no hints of ever making a lighter, lower-powered motorcycle. In that sense, Energica set the aspirational top of the electric motorcycling industry many years before Damon or Lightning started developing their motorcycles.
Was it cutting-edge?
However, in recent years, especially after the above two (along with TS Verge) broke onto the scene, we felt Energica fell behind. It was no longer cutting edge, staying at best on par with Zero Motorcycles.
Energica ran an HV architecture, which helped improve the performance numbers. However, speed was limited to extract a long-distance trip-friendly range from the battery.
The sports motorcycles - Ego+ and Eva Ribelle - were limited to 240 kph (150 mph) top-speed. This made them the EV equivalent of a Ducati Supersport 950. However, the world’s aspirations had moved on to the Panigale.
The Experia ADV was the most compromised—steady motor output was 60 kW (80 PS), with the peak coming at 75 kW (100 PS). This was woefully short of the R 1300 GS (107 kW / 145 PS), making the Experia underpowered. The Experia’s wheelbase is in the same ballpark as full-size ADV tourers like the R 1300 GS. The power deficit is felt even more, considering the Experia was at least 20 kg more than the GS.
Then it costs about USD 5000 more in the North American market.
Look at it from a cross-continental tourer’s perspective—the Energica Experia is a motorcycle with lower bragging rights, more weight, less power, and a significantly higher price. You must also make lengthy coffee stops every 200 - 250 km.
Sales never took off to the level where it would have saved Energica.
What about Ideanomics?
This one stays murky, but Energica downed shutters, and the board decided to liquidate because the cash flow help from Ideanomics evaporated. The PE firm was extensively investing in EV-focused businesses, and the present downturn in the EV industry would have badly impacted it everywhere. It probably didn’t have the financial bandwidth to help Energica.
In the press release, the Energica board makes some positive/neutral comments about Ideanomics.
However, towards the end, it sort of gives things away.
Conclusion
We hate to say this, but there is little hope for top-end electric motorcycles. Due to decades of innovation and fine-tuning, high-end ICE is at the cutting edge now. To rival top-notch ICE machines like the Ducati Multistrada V4 with the present level of EV tech, it may take a few years for motorcycle batteries to go semi-solid-state (if not full solid-state) to create a lightweight yet long-range package. Anything done meanwhile would fall short.
InsightEV’s upcoming Global Landscape and Prospects—Electric Two-Wheelers and Urban Mobility details Energica, Damon, Lightning, and 214 more manufacturers/startups. Please message us to request a sample.