Zero Motorcycles is in the process of closing a new funding round for a little bit more than $120 million. However, the arrival of the Republican President could determine the company destiny, dropping out incentive for electric 2 wheelers.
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Electric motorcycle company Zero is in the process of closing a new funding round for a little bit more than $120 million, according to a filing with the U.S. Securities and Exchange Commission. The filing shows that Zero has sold around $100 million of the equity round so far from two undisclosed investors.
This is following the 2022 completion of a $107 million round of financing. The financing saw participation from strategic partners Polaris, Exor and Hero MotoCorp and financial investors including long-time backer Invus and other undisclosed investors.
With the last round of financing, Zero Motorcycles has raised in excess of $620M of capital.
Zero’s raise comes amid some rough waters for electric motorcycle companies. One of the largest, Italy’s Energica, filed for bankruptcy in October, after slashing its workforce by 70%. Design-forward e-moto startup Cake filed for bankruptcy in February, though it has emerged with a new owner. Smaller players like Fuell and Sondors have also gone out of business.
While the Electrification is still slow for the motorcycles segment and the million of electric two wheeler sales are concentrated in the moped/scooter segment, the California-based Zero Motorcycles, the pioneer of the sector is struggling to move, up the annual volumes.
After achieving around 3.500 sales in the 2020, in the 2022 sales are projected to grow up at around 4.5K, a still light increase which is not enough to support a robust R&D investments and the expansion of commercial operations in all countries.
Zero is the global leader in the high-performance electric motorcycles. But the segment is really small and the company struggles to keep volume up remaining far away from a break-even.
In the last years by the incentive scheme approved by US government in November 2021, when the electric motorcycles received generous tax credit proposals in the Build Back Better Act, which was passed by the US House of Representatives. But the new boss in the White House could stop this scheme and risks to survive for Zero adventure will become huge.
Company Heritage
Founded in 2006 in a Santa Cruz, California garage by a former NASA engineer, Neal Saiki, Zero Motorcycles aims to innovate in the motorcycles industry developing a unique range of sport motorbikes, all only electric fueled.
New York private equity firm Invus has led $86 million in funding since Zero was born — and depending on who you talk to, growth ahead of it. Electric motorcycles are seen as an area of the business that could boom in coming years, even as traditional gas-powered bikes wane in popularity.
Since February 2017 the company is under the leadership of the new CEO, Mr. Sam Paschel.
The business idea was almost easy – on paper – but daring to be realized: to produce an entire range of 100% electric motorcycles, from sport-street to motocross, and build up a company around them.
The current line up includes the Zero S (street), the Zero SR (street racing), the Zero FXS (supermoto), the Zero DS (dual-sport), the Zero DSR (dual-sport racing) and the Zero FX (motocross), the SR/F and the new SR/S.
Zero Motorcycles in charging phase
Technology
At the heart of every Zero is the efficient Z-Force® powertrain, which eliminates the need for the heavy and complex components found in conventional motorcycles. The Z-Force® motor contains only one moving part, is sealed and air-cooled, and requires no routine maintenance.
Despite its compact proportions, the motor produces up to 116 ft-lb of torque, more than you’ll find in any 1,000cc gas-burning sport bike. The Z-Force® battery achieves the highest power and energy density in the EV industry and is backed by a five-year, unlimited mileage warranty.
Each bike’s range is determined by battery capacity, speed and riding habits. With the optional Power Tank accessory, the Zero SR is capable of over 220 miles in the city and 110 miles on the highway. Zero FX and Zero FXS models feature an optional modular power pack system that allows batteries to be swapped in under a minute.
Charging
Charging a Zero is simple and convenient. No complex or expensive equipment or charge station installation required. Every Zero comes equipped with a built-in charger that turns any household 110/220V outlet into a “fueling station,” and the connection takes just a few seconds to plug and unplug. Depending on battery capacity, charging can take from a couple of hours to overnight.
Distribution
USA is were Zero Motorcycles is selling more, thanks to the Government and Federal incentives supporting electric vehicles and for a wide distribution network across the country. Since this summer they have opened the first exclusive dealership in Orange County, California, starting a new phase of their distribution strategy, which will be based on exclusive dealerships. Actually there are 99 dealers in North America and 200 in the rest of the World (mainly Europe).
However actually Zero distributes models in 29 countries (plus USA):
Canada, Panama, Chile, Uruguay, Portugal, Spain, UK, France, Belgium, Switzerland, Italy, Austria, Germany, Denmark, Sweden, Norway, Finland, Czech Republic, Hungary, Ukraine, Russia, Turkey, Israel, Kuwait, UAE, China, Thailand, Indonesia and Australia.
