LiveWire Group Stock Soars 11.23% on Strong Earnings, EV Challenges

LiveWire Group's stock price surged by 11.23% in pre-market trading on June 11, 2025, reflecting a significant increase in investor confidence and market optimism.

Recent developments have highlighted both positive and negative aspects of LiveWire Group's performance. On the positive side, the company reported a better-than-expected operating income margin of 12.1% for the quarter. The launch of the limited production Harley Davidson CVO Road Glide RR has garnered strong pre-order responses, indicating high demand. Additionally, LiveWire Group plans to introduce new entry-level products in smaller displacements, aiming for affordability and profitability. The company is also committed to reducing dealer inventory levels, with a target of a 10% reduction by year-end. Harley Davidson Financial Services (HDFS) delivered a 19% increase in operating income for the quarter, driven by lower credit losses and operating expenses.

However, the company faces several challenges. Global retail sales were down 21% in Q1, with a 24% decline in North America, primarily due to low consumer confidence. LiveWire Group is also experiencing headwinds in the EV market, with slower-than-expected adoption due to lack of incentives and regulatory challenges. The company has withdrawn its 2025 guidance due to uncertainty in the global economy and tariff landscape. Additionally, LiveWire Group reported an operating loss of $20 million for the quarter, with a cash burn of $49 million. Tariffs, particularly from China, pose a significant financial impact, with potential costs estimated between $130 to $175 million for 2025.