Rad Power Bikes’ $13.2 Million Acquisition: A New Chapter in E-Bike Industry
Rad Power Bikes, a prominent name in the electric bicycle sector, has agreed to be acquired by Life Electric Vehicles Holdings (Life EV) for approximately $13.2 million. This development comes shortly after Rad Power Bikes filed for bankruptcy, marking a significant shift in the company’s trajectory.
The Acquisition Details
Life EV, based in Florida, describes itself as a developer, manufacturer, and distributor in the light electric vehicle industry. The company offers a range of electric bikes, though many were listed as sold out at the time of the announcement. The acquisition process involved an auction on January 22, where five entities participated. The initial bid was $8 million, with Life EV emerging victorious. Considering Rad Power’s liabilities, the total value of the bid amounts to $14.9 million.
Retrospec, another e-bike company, placed the second-highest bid of $13 million and is designated as the backup bidder should the deal with Life EV not materialize. This acquisition price is a stark contrast to Rad Power’s peak valuation of $1.65 billion in October 2021, highlighting the company’s financial challenges.
Rad Power Bikes’ Financial Journey
Founded in 2007, Rad Power Bikes experienced rapid growth, especially during the COVID-19 pandemic, as consumers sought alternative transportation methods. The company secured substantial funding, including a $150 million investment in February 2021, aiming to expand its workforce and global presence. However, as pandemic-induced demand waned, Rad Power faced financial difficulties, leading to multiple layoffs and strategic shifts.
In November 2025, the company informed employees of a potential shutdown by January without new funding or acquisition. Despite efforts to secure a promising deal, it did not materialize, culminating in the Chapter 11 bankruptcy filing in December 2025. The company entered bankruptcy with $32 million in assets and $73 million in liabilities, including over $8 million owed to the U.S. Customs and Border Protection agency for unpaid tariffs.
Safety Concerns and Leadership Changes
Compounding Rad Power’s challenges were safety issues related to its e-bike batteries. The U.S. Consumer Product Safety Commission (CPSC) issued a warning in November 2025, citing 31 reports of fires linked to the batteries, some occurring even when not charging. Rad Power contested the CPSC’s characterization, emphasizing their commitment to safety.
Leadership transitions also marked this period. In March 2025, CEO Phil Molyneux stepped down, with CFO Stephanie Roberts serving as interim CEO. Shortly after, Kathi Lentzsch, known for turning around underperforming companies, was appointed CEO, signaling a strategic pivot towards a retail-focused approach.
Industry Context
Rad Power’s situation reflects broader trends in the micromobility industry. Companies like VanMoof and Cake have undergone restructurings and found new ownership, while scooter company Bird also navigated bankruptcy proceedings. These developments underscore the volatile nature of the e-bike market, influenced by fluctuating consumer demand, safety concerns, and financial challenges.
Looking Ahead
The acquisition by Life EV introduces questions about the future direction of Rad Power Bikes. Life EV CEO Robert Provost indicated ongoing processes and an exciting future for Rad Power but did not provide specific details. The acquisition awaits approval from the bankruptcy judge, and stakeholders are keenly observing how Life EV will integrate Rad Power’s assets and brand into its operations.
