LiveWire Group's Long-Term Investors Face Steep 79% Decline as Stock Tumbles
LiveWire's Rocky Ride: Five-Year Slump Tests Investor Patience
NEW YORK – The dream of long-term growth in the electric vehicle sector has turned into a harsh reality for investors in LiveWire Group (NYSE: LVWR). The Harley-Davidson spinoff, launched with fanfare to capture the electric motorcycle market, has seen its share price plummet 79% over the past five years. The decline accelerated this past week alone, with the company shedding approximately $55 million in market value.
While the broader market has rallied, LiveWire shareholders have faced a starkly different outcome. The stock is down 23% over the past year and has plunged 51% in the last 90 days, significantly underperforming the S&P 500's approximate 15% gain over the same period.
Analysts point to the company's persistent financial challenges as a core driver of the decline. LiveWire has yet to achieve profitability, placing intense scrutiny on its revenue trajectory. Over the last five years, the company's revenue has contracted at an annualized rate of 6.6%, a troubling trend for a growth-oriented business in a capital-intensive industry.
"When a pre-profit company is also showing shrinking revenues, it sets off major alarm bells," said market analyst Rebecca Shaw of Axton Capital. "The market is willing to fund growth stories, but it needs to see a credible top-line expansion narrative. LiveWire's challenge is to prove it can scale meaningfully in a crowded EV space against well-funded competitors."
The company's performance highlights the heightened risks associated with investing in early-stage EV manufacturers, where high cash burn and fierce competition can quickly erode investor confidence, regardless of the sector's long-term potential.
Investor Reactions: Frustration and Fading Patience
We spoke to several investors for their take on LiveWire's prolonged slump:
Michael Torres, Portfolio Manager (San Francisco, CA): "This is a classic case of a great brand extension facing brutal execution challenges. The Harley-Davidson association gets you attention, but building a viable, scaled EV business from scratch is a completely different game. The revenue numbers don't lie—they're going in the wrong direction. Until we see a clear turnaround plan with measurable milestones, it's hard to justify holding."
David Chen, Long-Term Retail Investor (Chicago, IL): "I bought into the long-term vision of electric motorcycles and believed in the brand power. The 79% loss is devastating, frankly. It feels like we've been patient through the 'building phase,' but where's the payoff? The constant dilution and lack of progress on fundamentals make me wonder if this was ever more than a passion project for the parent company." [Emotional/Sharp]
Sarah Jensen, Sustainable Investing Analyst (Boston, MA): "The volatility is extreme, but we must contextualize it within the broader EV startup shakeout. Not all will survive. LiveWire's advantage is its manufacturing and dealer network backbone from Harley. The key question is whether they can leverage that infrastructure faster than their cash depletes. The next two quarters are critical for demonstrating operational traction."
LiveWire's journey underscores a critical lesson for growth investing: strong sector tailwinds do not guarantee individual stock success. Investor enthusiasm for the EV transition must be tempered with rigorous analysis of unit economics, competitive moats, and realistic timelines to profitability.
Disclosure: This analysis is based on historical data and analyst forecasts. It is not financial advice. Investors should consider their own objectives and conduct independent research.