Electric vehicles may dominate conversations about sustainable transport, but these companies already trade at lofty valuations. Moreover, there are signs that the EV market is experiencing a growth plateau as government incentives come with more strings attached.
On the other hand, anyone who lives in an urban environment knows that e-bikes, e-scooters, and other small electric mobility solutions continue to take off. These “micro-EVs” present an often-overlooked opportunity that harmonizes the environmental benefits with practicality and economic sense – a win-win-win for consumers and investors.
Let’s dive in to learn more about this market and how you can invest.
A Rapidly Growing Market
The North American e-bike market is projected to grow at a 16.9% compound annual growth rate, from $3.45 billion in 2024 to $7.54 billion in 2029, according to Mordor Intelligence. Notably, these sales don’t depend on volatile government incentives like conventional EVs – it’s pure, organic consumer demand.
At the same time, governments are making substantial investments in bike sharing programs, bike lanes, and pedestrian-friendly streets. For example, the NYC Streets Plan requires New York City to install at least 50 miles of protected bike lanes each year from 2023 to 2026, and a total of 250 miles in the five years from 2022 to 2026.
How to Invest in the Market
Conventional bike manufacturers, like Trek Bicycles and Cannondale, have expanded into the e-bike market in recent years. Meanwhile, Uber Technologies Inc. (UBER) and other ride-sharing companies have introduced micro-EV options. But neither of these segments offers investors a pure-play in the micro-EV space.
Life EV Holdings Inc. (LFEV) is one of the few pure-play micro-EV companies. After acquiring a 40% stake in LEV Manufacturing Inc. (which owns 91% of a major motorcycle brand’s e-bike spin-off), the company became the only domestic e-bike manufacturer, developing and distributing tariff-free, high-margin, premium and scalable e-bikes for both their own and 3rd party brands under the affiliated companies.
In the near future, plans are to introduce connectivity solutions to generate recurring revenue. These capabilities include turn-by-turn navigation, theft tracking, and advanced diagnostics. Phase 2 and 3 capabilities will integrate ecommerce, bike accessories, and fleet management solutions for businesses.
The Bottom Line
Electric vehicles have drawn investor attention over the past few years, but micro-EVs represent an underrated subset of the market. If you’re interested in this market, Life EV Holdings Inc. (LFEV) is one of the few pure-plays.
If you’re an accredited investor, inquire about the company’s Regulation D offering.
