LiveWire Group has acquired the assets of American electric dirt bike company Dust Moto, which had been working toward delivering its first production model. The deal moves LiveWire into the electric off-road adult market for the first time, a segment it has been eyeing as a way to grow beyond its narrow base of on-road electric motorcycles and its child-oriented Stacyc brand.
Stacyc bikes are built around the idea that kids who learn to ride electric balance bikes will grow into adult motorcycle riders. Kids who start on a Stacyc develop the same core skills they will need when they eventually step up to a full-size dirt bike.
That long-term pipeline is now pointed directly at the Dust Moto platform. A child who learns to ride on a Stacyc at age four could, over the following decade-plus, naturally progress to a machine descended from what Dust Moto built.
“LiveWire pioneered the on-road electric motorcycle market, and this acquisition allows us to build on that leadership as we expand into off-road, continuing the journey that began with Stacyc ten years ago,” said LiveWire CEO Karim Donnez. “Dust Moto is a strong strategic fit and an accelerator of our vision, bringing proven off-road insight that will contribute meaningfully to LiveWire’s leadership position in electric powersports.”
LiveWire said it plans to push Dust Moto’s existing electric dirt bike platform into production, using its own engineering team, manufacturing relationships, and dealer network to bring it to market faster than Dust Moto could on its own.
About Dust Moto
Dust Moto was founded in 2023 by Colin Godby, with a clear goal: to build an affordable, high-performance electric dirt bike in America. The company developed two models before the acquisition. The first was the Model_1 Alpha, priced at $10,950. We had a First Look story on the bike in 2024.
The second was the Hightail, an updated design producing 42 horsepower and 485 lb-ft of torque, while weighing under 220 pounds and retaining the $10,950 price point. The Hightail was developed with Bloom, an EV manufacturer based in Detroit. Dust Moto was taking pre-orders with a $100 deposit before the acquisition. Neither model has reached mass delivery.
“Joining LiveWire marks an exciting next chapter in our journey,” Godby said. “LiveWire shares our fundamental DNA as an American brand focused on performance, innovation, and putting riders first. With LiveWire’s scale, resources, and global reach, we can bring our electric off-road bike to market with a worldwide audience and deliver an unmatched off-road experience.”
Is LiveWire Profitable?
The acquisition makes strategic sense for LiveWire (NYSE: LVWR), but it comes from a company that has been bleeding cash. In 2024, LiveWire posted an operating loss of $110 million on just $26.6 million in revenue, a 30% drop from the year before. Motorcycle unit sales dropped 54% in the fourth quarter of 2024 year-over-year. Cash on hand fell from $167.9 million at the end of 2023 to $64.4 million at the end of 2024.
The company set a target to cut its cash burn by 40% or more in 2025 compared to 2024. There are early signs that the belt-tightening is working. LiveWire said Q1 2026 revenue was up 86% over Q1 2025, with a 25% improvement in free cash flow, though it still reported an operating loss for the quarter. LiveWire sold 91 motorcycles in Q1 2026, along with 3,959 Stacyc two-wheelers.
“We ended the first quarter of 2026 with an 86% increase in revenue over prior year, driving improved gross profit and operating loss, and a 25% improvement in free cash flow, compared to first quarter 2025,” Donnez said. “We also maintained our position as the number one retailer of U.S. electric on-road motorcycles. With the upcoming launch of the S4 Honcho, we are excited about the continued positive strides to be made in the business in the remainder of 2026.”
LiveWire stock has been taking a beating. After peaking at $7.50 per share last June, it is trading at $1.33 today. LiveWire’s market cap is slightly more than $272 million. LiveWire stock peaked in 2023 at $12 per share and is now down over 86% from that high. On the upside, the stock is up 33% from its low a year ago, when it dropped below a dollar a share.
LiveWire is majority-owned by Harley-Davidson, which has been backing the brand’s losses since it spun it out as a standalone public company. The heavyweight electric on-road motorcycle market has proven smaller than many expected, so LiveWire has been seeking ways to expand its market.
LiveWire said it plans to release more details on a production launch in the second half of 2026. The company did not disclose the financial terms of the Dust Moto acquisition. While the electric dirt bike market is growing, it is not without headwinds. Amazon recently pulled high-speed electric motorbikes from its California marketplace after a state investigation found sellers promoting motorcycle-performance bikes as legal e-bikes. It’s a sign that regulators are paying closer attention to the market. Whether LiveWire can execute a Dust Moto production launch while still posting operating losses will be the real test. Unfortunately, LiveWire Group has a long way to go before it is profitable.
