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Volkswagen Pauses Development of Electric ID. Golf Model
LiveWire warns it may not survive, shares plunge more than 40%
Harley-Davidson-born electric motorcycle maker LiveWire says it has substantial doubt about continuing as a going concern and has withdrawn its full-year guidance.
By George Kensington · 2 min read
Electric motorcycle maker LiveWire, born out of Harley-Davidson, has issued a warning about its financial future, saying it has substantial doubt about its ability to continue operating as a going concern. The announcement sent the company's stock down more than 40% on Thursday morning.
In financial reporting, a going-concern doubt means management sees a real risk that a business may not be able to meet its obligations and keep operating over the foreseeable future. Such a disclosure typically alerts investors and lenders to serious pressure on a company's finances, which explains the sharp market reaction.
At the same time, LiveWire withdrew its full-year financial guidance. Withdrawing a forecast removes the benchmark investors use to judge a company's expected performance over the coming months, and combined with the going-concern warning it has deepened the uncertainty surrounding the business.
LiveWire is the electric motorcycle arm that grew out of Harley-Davidson's push into the electric two-wheeler segment, where traditional manufacturers are trying to establish themselves as interest in electric transport grows. The available material does not detail the steps the company plans to take, such as securing additional funding or a strategic partner, so the outcome remains unclear.
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