Rad Power Bikes Sells for $13.2M After Bankruptcy Filing
Rad Power Bikes has officially agreed to sell its assets for $13.2 million to Life Electric Vehicles Holdings, a Florida-based light electric vehicle manufacturer. The deal, approved through a bankruptcy auction on January 22, 2026, represents a stunning collapse for the once-dominant e-bike brand that reached a $1.65 billion valuation just four years ago. After entering Chapter 11 protection in December 2025, Rad Power attracted five bidders in a competitive auction that started at $8 million before Life EV emerged as the winning bidder. The transaction still requires final approval from a bankruptcy judge, but it signals both an end and a potential rebirth for one of America's most recognizable electric bike companies.
Credit: Rad Power Bikes
From Pandemic Darling to Bankruptcy in Under Five Years
Rad Power Bikes became a household name during the 2020–2021 pandemic surge, when lockdowns and health concerns drove millions toward personal micromobility solutions. The Seattle-based company capitalized brilliantly on this moment, securing massive venture funding rounds and expanding its direct-to-consumer model nationwide. At its October 2021 peak, Rad Power commanded a staggering $1.65 billion valuation after raising nearly $330 million from investors betting on permanent shifts in urban transportation.
But the momentum proved fleeting. As pandemic restrictions lifted and commuting patterns normalized, demand for e-bikes softened dramatically across the industry. Rad Power faced intensifying competition from both budget imports and premium European brands, while its operational costs—warehousing, logistics, customer service—remained stubbornly high. The company cycled through multiple CEOs, implemented repeated layoffs, and struggled to maintain profitability as sales declined. By late 2025, mounting debt and shrinking revenue left bankruptcy as the only viable path forward.
The Auction That Slashed a Billion-Dollar Brand to Pennies on the Dollar
The January 22 bankruptcy auction revealed just how dramatically Rad Power's fortunes had reversed. Five entities participated in bidding for the company's intellectual property, brand assets, inventory, and dealer network. Initial offers started at $8 million before escalating through several rounds. Life Electric Vehicles Holdings ultimately secured the winning bid at $13.2 million in cash, with the total transaction value reaching $14.9 million after accounting for assumed liabilities.
Retrospec, another U.S.-based e-bike manufacturer, placed the second-highest bid at $13 million and now serves as the designated backup bidder should Life EV's deal encounter regulatory or financing hurdles. Industry analysts note the final price represents less than 1% of Rad Power's peak valuation—a brutal reminder of how quickly venture-backed hardware startups can unravel when market conditions shift. For context, the entire $13.2 million sale price amounts to roughly 4% of the total capital Rad Power raised throughout its existence.
Battery Safety Concerns Complicated an Already Rocky Path
Beyond macroeconomic headwinds, Rad Power faced significant reputational damage from a high-profile battery safety controversy in 2024. The U.S. Consumer Product Safety Commission documented 31 reported fires linked to older Rad Power battery models, prompting warnings to consumers about potential thermal runaway risks. While Rad Power publicly disputed the CPSC's characterization—stating it "firmly stands behind our batteries and our reputation as leaders in the e-bike industry"—the incident eroded consumer confidence during a critical period.
Safety recalls and negative media coverage coincided with Rad Power's most aggressive cost-cutting measures, creating a vicious cycle. Customer service response times lengthened as staff shrank, warranty claims piled up, and social media sentiment turned increasingly negative. For a brand built on accessibility and reliability, the battery issue struck at its core value proposition precisely when it could least afford reputational damage.
Life EV: Who's Buying the Remnants of a Fallen Giant?
Life Electric Vehicles Holdings describes itself as a developer, manufacturer, and distributor within the light electric vehicle space. Its current product lineup features several e-bike models, though most appeared sold out on its website at the time of Rad Power's auction announcement. CEO Robert Provost has remained characteristically tight-lipped about integration plans, telling reporters only that "there is an exciting future being planned for Rad Power" while deferring detailed questions to Rad Power's leadership team.
Industry observers speculate Life EV may leverage Rad Power's established brand recognition, dealer relationships, and customer database to accelerate its own market entry. Rather than maintaining Rad Power's capital-intensive direct-to-consumer model, the new owners might transition toward wholesale distribution or white-label manufacturing—strategies requiring far less overhead. The Rad Power name still carries significant equity among American commuters, representing a valuable asset even if the original business model proved unsustainable.
A Pattern of Collapse Across the Micromobility Landscape
Rad Power's trajectory mirrors broader turbulence in the micromobility sector. Dutch e-bike innovator VanMoof filed for bankruptcy in 2023 before being acquired by Swedish automotive group Lavoie. Swedish electric motorcycle maker Cake underwent its own restructuring after pandemic-driven demand evaporated. Even scooter giant Bird navigated Chapter 11 protection before emerging under new ownership with a radically scaled-back operational footprint.
These parallel collapses suggest systemic challenges beyond any single company's missteps. Micromobility startups often required massive upfront investment in hardware development, supply chain logistics, and last-mile infrastructure—cost structures ill-suited for rapid demand contraction. Unlike software platforms that can pivot quickly, physical product companies face brutal fixed costs when sales decline. Rad Power's story ultimately reflects an industry-wide reckoning with the gap between pandemic-era hype and long-term unit economics.
What This Means for E-Bike Shoppers and the Industry
For existing Rad Power owners, the acquisition should provide welcome continuity. Life EV has indicated it intends to honor existing warranties and support the installed base of Rad Power bikes—a critical move for maintaining brand trust. Replacement parts and service should remain available through Rad Power's established dealer network, though customers may notice gradual shifts in support channels over the coming months.
For the broader e-bike market, Rad Power's fire-sale exit sends a sobering message to investors: hardware-heavy mobility startups require fundamentally different financial models than their app-based predecessors. Sustainable growth demands realistic unit economics from day one—not reliance on endless venture funding to subsidize customer acquisition. Yet the underlying demand for affordable electric transportation remains robust. Industry analysts project the North American e-bike market will still grow at 11% annually through 2030, suggesting Rad Power failed not because of category weakness, but execution challenges in a brutally competitive landscape.
The Road Ahead for a Resurrected Brand
Rad Power's new chapter under Life EV ownership begins with modest expectations but meaningful advantages. The brand retains strong recognition among urban commuters, a functional (if scaled-back) dealer network, and proven bike designs that resonated with mainstream Americans. Stripped of bloated overhead and venture capital pressure for hypergrowth, Rad Power might finally achieve the sustainable profitability that eluded its previous incarnations.
The coming months will reveal whether Life EV intends to revive Rad Power as a standalone brand or absorb its assets into a broader portfolio strategy. Either path offers lessons for hardware entrepreneurs: market timing matters immensely, but lasting businesses require unit economics that survive trend cycles. Rad Power's $13.2 million sale closes one ambitious chapter while opening another—one where survival may prove more valuable than stratospheric valuations. For an industry still finding its footing, that might be the most important lesson of all.
