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Lectric eBikes, one of the largest suppliers of electric bicycles in the US, made a joint announcement today with the Consumer Product Safety Commission (CPSC) of a voluntary recall for many of the Lectric XP 3.0 electric bikes produced and sold earlier this year.

The recall is related to a braking issue with the mechanical brake calipers on the bikes.

According to the announcement, “the mechanical disc brake calipers located on the front and rear of the e-bike can fail resulting in loss of control, posing crash and injury hazards to the rider.” The recall covers approximately 45,000 Lectric XP 3.0 electric bikes with mechanical brakes sold between November 2022 and May 2023.

Among those 45,000 e-bikes, there were four instances reported of brake failure due to a faulty part in the brakes produced by one of Lectric eBikes’ suppliers. Two of those instances resulted in injuries to the rider.

That model hasn’t been sold since May of this year when Lectric eBikes switched the XP 3.0 over to hydraulic disc brakes.

Recalled e-bikes to get at-home upgrade kits

Lectric eBikes has prepared a remedy for the affected bikes that includes a hydraulic disc brake upgrade kit. The kit is designed to be simple enough for most riders to install on the bikes themselves in 10 to 15 minutes, but Lectric will pay for a bike shop to professionally install the hydraulic disc brakes for anyone who doesn’t want to install the new brake kit alone.

The hydraulic disc brake upgrade kits are already available, and Lectric eBikes is contacting owners of all affected bikes to get their hydraulic brake kits sent out immediately.

lectric xp 3.0 electric bike

I spoke with Lectric eBikes cofounder and CEO Levi Conlow about the recall, and he explained that “once we learned of the issue, we immediately stopped selling those e-bikes with mechanical disc brakes.”

They then reached out to the CPSC to begin the process of a voluntary recall.

The four instances of brake failure only occurred under a certain scenario when the brake cable was not properly adjusted, and so the company also sent out a service bulletin to its riders explaining how to check and adjust their brakes to ensure that any potentially affected brake calipers would be properly adjusted to prevent any future failures. The company also began offering its hydraulic brake upgrade kit for free to any XP 3.0 e-bike owners back in May, and around half of its customers have already taken the company up on the offer to receive a free hydraulic brake replacement in advance of the recall announcement today.

Despite Lectric eBikes electing to enroll in the Fast Track Recall program, it is common for companies engaging in recalls with the CPSC to be barred from officially announcing the recall until the CPSC makes a joint statement. In this case, it looks like Lectric stopped selling the models in May when it announced its hydraulic brake upgrades, but the CPSC’s announcement only came in September.

Lectric eBikes had already been in the process of moving the Lectric XP 3.0 e-bike line to hydraulic disc brakes, but expedited those plans when it discovered the mechanical brake issue. “We moved up our hydraulic brake timeline by around six months,” Conlow explained. “It was supposed to be our big November launch.”

But for the company, it was important to make those changes quickly despite the small number of brake failures. “We knew we were going to do the right thing. We weren’t going to cheap out or wait until 200 incidents were reported.”

For Conlow, the most important thing in the days following the discovery was to act quickly as they could and make the process as easy and safe for riders as possible. “For us, it was important to spare no expense. We’re paying for shop installations. We have the replacement kits in stock already, right now. In fact, I probably bought way too many of them, but we knew we had to have enough to have everyone covered right away.”

Anyone seeking more information on the recall can reach out to Lectric eBikes at 879-479-5422 or find more information online at https://www.lectricbikesrecall.expertinquiry.com or at www.lectricbikes.com under the recalls tab for more information.

Lectric XP 3.0 e-bikes now all come with hydraulic disc brakes

E-bike industry recalls

The last few years have seen several large recalls in the e-bike industry. One of the freshest on the minds of many riders involved the RadWagon 4, a cargo e-bike that was recalled due to a wheel issue. Over 29,000 of those models were recalled after 137 reports of tire failures, and riders were left waiting several months for upgrade kits to arrive.

Trek recently issued a recall for over 96,000 bikes that had a separate braking issue related to the brake cables and housing. In that case, the bikes continued to be sold over a nearly two-year period from June 2021 to March 2023 until the recall was issued in June of 2023. A total of 195 cases of brake failure were reported.

Electrek’s Take

This is certainly an unfortunate turn of events, and anyone who owns a Lectric XP 3.0 with mechanical disc brakes should absolutely reach out to Lectric to get their free hydraulic upgrade kit. Even if your brakes appear to be fine, you never know if there’s a defect inside your brake caliper. Plus, higher quality hydraulic disc brakes are a great upgrade – and there’s no price better than free!

Unfortunately recalls do happen from time to time in any consumer product industry, but I’m glad to see that Lectric appears to be handling it quite well. The problem seems to have been related to a small number of improperly produced brake calipers (with only four reported failures), but since Lectric couldn’t know exactly how many or which bikes were affected, they immediately reached out to all XP 3.0 customers to help them adjust their brakes properly to prevent the issue from occurring even if the brakes contained the manufacturing defect. Then it seems to me like they’ve worked to officially recall the bikes as fast as they were allowed to by the CPSC, and they already have the solution in stock and shipping out. As far as recalls go, this is about as good as it gets, in my opinion.

Obviously it would be better if the brake defect had been found before it ever made it out, but this also highlights a unique advantage of the direct-to-consumer business model. For example, in the case of Trek, their brake recall included nearly 100,000 bikes across over a dozen models. And since they sell through dealers, Trek was somewhat hamstrung in contacting customers since it simply didn’t know where all of its bikes were. With D2C sales like Lectric’s and many other value-priced electric bike manufacturers, direct sales mean the company knows who all of its customers are and can contact them directly. D2C isn’t better for everything, but in this case it appears to have been an advantage.

Lastly, the recall gives us interesting insight into Lectric’s sales figures. In a six-month period from November 2022 to May 2023, Lectric seems to have sold 45,000 of its XP 3.0 models. Extrapolated to 90,000 bikes annually (though that may not be entirely accurate due to seasonal sales impacts) in just one of the company’s several model lines, those are some impressive sales numbers.

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Trump’s first day, Hyundai lease deals, and Volvo’s EVs arrive in the US

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Trump's first day, Hyundai lease deals, and Volvo's EVs arrive in the US

On today’s episode of Quick Charge, President Trump has a wild first day in office, but it’s not ALL bad, either. Plus: Tesla gets diner integration, Hyundai keeps the deal train rolling, and it’s dad’s 80th birthday.

We also look ahead to some possible discounts for Tesla insurance customers, some news on the upcoming “cheap” Cybertruck, and wonder out loud if Puerto Rico’s billion dollar solar project is going to see the light of day. All this and more – enjoy!

Prefer listening to your podcasts? Audio-only versions of Quick Charge are now available on Apple PodcastsSpotifyTuneIn, and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.

Got news? Let us know!
Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show.

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Stripe cuts 300 jobs in product, engineering and operations

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Stripe cuts 300 jobs in product, engineering and operations

The Stripe logo on a smartphone with U.S. dollar banknotes in the background.

Budrul Chukrut | SOPA Images | LightRocket via Getty Images

Stripe cut 300 jobs, representing about 3.5% of its workforce, mostly in product, engineering and operations, CNBC has confirmed.

The payments company, valued at about $70 billion in the private markets, still expects to increase headcount by 10,000 by the end of the year, which would be a 17% increase, and is “not slowing down hiring,” according to a memo to staff from Chief People Office Rob McIntosh. Business Insider reported earlier on the cuts and the memo.

A Stripe spokesperson also confirmed to CNBC that a cartoon image of a duck with text that read, “US-Non-California Duck,” was accidentally attached as a PDF to emails sent to some of the employees who were laid off. Some of the emails mistakenly provided affected employees with an incorrect termination date, the spokesperson said.

McIntosh sent a follow-up email to staffers apologizing for the “notification error” and “any confusion it caused.”

“Corrected and full notifications have since been sent to all impacted Stripes,” he wrote.

In 2022, Stripe cut roughly 1,100 jobs, or 14% of its workers, downsizing alongside most of the tech industry, as soaring inflation and rising interest rates forced companies to focus on profits over growth. The Information reported that Stripe had a few dozen layoffs in its recruiting department in 2023.

Stripe’s valuation sank from a peak of $95 billion in 2021 to $50 billion in 2023, before reportedly rebounding to $70 billion last year as part of a secondary share sale. The company ranked third on last year’s CNBC Disruptor 50 list.

In October, Stripe agreed to pay $1.1 billion for crypto startup Bridge Network, whose technology is focused on making it easy for businesses to transact using digital currencies. 

Brothers Patrick and John Collison, who founded Stripe in 2010, have intentionally steered clear of the public markets and have given no indication that an offering is on the near-term horizon. Total payment volume at the company surpassed $1 trillion in 2023.

WATCH: Early Bridge investor weighs in on $1.1 billion Stripe deal

Early Bridge investor weighs in on $1.1 billion Stripe deal

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Rivian is offering up to $6,000 to upgrade your R1S or R1T

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Rivian is offering up to ,000 to upgrade your R1S or R1T

Thinking about upgrading your EV? Rivian (RIVN) launched a new promo on Tuesday, offering up to $6,000 to upgrade your R1S or R1T. Here’s how you can snag some savings.

Rivian R1S and R1T upgrade deal offers up to $6,000

Rivian delivered over 51,500 vehicles last year as the EV maker gains momentum. Although it was only slightly higher than the ~50,100 delivered in 2023, Rivian is expected to see even more growth this year.

After shutting down its Normal, IL manufacturing plant last April and renegotiating supplier contracts, Rivian has seen “significant cost improvements,” according to CEO RJ Scaringe.

Rivian also began delivering its next-gen R1S and R1T models last year. The new Large and Max battery packs have redesigned modules and more efficient packaging, “making them easier to manufacture and service.” For example, Rivian’s new EVs use seven ECUs, down from 17 in the first-generation R1T and R1S.

With new plant upgrades, reworked supplier contracts, and more efficient vehicles, Rivian is now passing the savings on to customers.

Rivian-EV-upgrade-$6,000
Rivian R1T (left) and R1S (right) electric vehicles (Source: Rivian)

Rivian introduced a new promo on Tuesday, offering up to $6,000 to upgrade your R1T or R1S. The bonus amount varies by trim:

  • Tri with Max battery: $6,000 USD / CAD 8,600
  • Dual with Max battery and Performance upgrade: $4,500 USD / CAD 6,500
  • Dual with Max battery: $3,000 USD / CAD 4,300

The offer is for current R1T or R1S owners or lessees in the US and Canada. Rivian launched the new promo on January 21, and it runs through March 31, 2025.

After you purchase or lease a qualifying vehicle, Rivian will apply a discount toward the MSRP. You must take delivery by March 31, 2025. In the fine print, Rivian stated, “You must request a trade-in estimate to qualify for this offer, but trade-in of a vehicle is not required.”

Rivian-EV-upgrade-$6,000
Rivian R1S (Source: Rivian)

Any other models are excluded from the offer. These include Dual Standard configurations, Dual with Large battery configurations, custom builds, demo vehicles, and pre-owned vehicles.

The new offer follows Rivian’s previous upgrade promo introduced last October, giving qualifying gas-powered vehicle owners or lessees up to $3,000.

Check out the Rivian R1 Shop to view eligible models. You can see eligible Rivian R1S here and R1T models here.

Electrek’s Take

Rivian’s R1S was already the tenth best-selling electric vehicle in the US last year, with nearly 27,000 models sold. With more driving range and power at a lower cost, the electric SUV could see even more demand in 2025.

Then again, with the arrival of new luxury electric SUVs, like the Jeep Wagoneer S and Volvo EX90, Rivian will face more competition in the US.

Rivian’s latest promo comes as the Company looks to carry the momentum from the end of 2024 into the new year. The EV maker is offering other deals, including 1.99% APR for 60 months on the R1 Dual with a Max Battery and Performance upgrade.

Even if you are not eligible for the promo, we can still help you find deals on Rivian’s electric SUV in your area. You can use our links below to view offers on the Rivian R1S and R1T near you today.

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