Why more high-end bike companies are making budget-level electric bikes
An increasing number of premium bicycle companies have thrown their hat in the budget-minded electric bike ring lately, resulting in lower prices than ever before from major bike shop brands. So what’s behind this move?
Several of the recent launches from major bicycle brands have included models that undercut their average e-bike prices by several thousand dollars.
While Cannondale has grabbed headlines for its roughly $5,000 Cargowagen electric cargo bike recently, who remembers the much more affordable $1,900 Cannondale Compact Neo urban e-bike? The inclusion of a simpler hub motor compared to pricier and more complicated mid-drive motors helped the company reach its lowest price point yet for an e-bike.
Trek’s electric bikes normally carry hefty price tags as well, but the company’s Dual Sport+ and FX+ also saw hub motors and lower-shelf components bring the prices down to around $2,400 at launch.
Budget e-bikes leading sales
One of the reasons for this focus on more entry-level bikes is quite likely a mere numbers game. While profit margins aren’t as high on lower-priced e-bikes, they sell in much higher numbers in the US. Compared to Europeans that often buy e-bikes as car replacement vehicles and thus are prepared to spend many thousands of dollars for a higher end model, a much larger percentage Americans e-bike riders use their bikes either to supplement car trips or purely for sport/recreation.
Sure, there are plenty of Americans replacing traditional car ownership with e-bikes, and many of them will spend a bit more. But by and large, companies that serve the $1,000 to $2,000 price range in the e-bike market seem to make up the lion’s share of the sales.
That’s a difficult price point for many of the higher-end brands to reach, but several have gotten close. The Ponto Go! electric moped-style bike, launched by Trek subsidiary Electra, rolled out at $2,699 and offered a higher-end moped-style ride than much of the competition. It also had one more advantage going for it: access to Trek’s wide network of local bike shops offering service and support. The bike can’t compete watt for watt against entrenched favorites like the similarly styled Rad Power Bikes RadRunner, but it also comes with the backing of a much older and well-established bike company with hundreds of local bike shops to call on.
Additionally, a growing number of e-bike incentive programs are helping people buy electric bikes that they couldn’t previously afford, as well as helping others afford a higher-quality and longer-lasting bike than could have been possible without subsidies or tax credits.
Lower-cost e-bikes serve as introductions to higher-end brands
When Specialized launched its Globe line, it did so with a calculated decision to reach value shoppers and introduce them to a higher end e-bike company.
Similarly to other brands that have taken a razor to their price tags, Specialized skipped the mid-drive motor and higher-end components when it rolled out its short tail and then long-tail cargo e-bikes designed for budget-minded bike shoppers. But it kept much of its higher quality design and fabrication as well as access to its network of bike shops for service and support.
And in doing so, the company has started getting riders on Specialized e-bikes that likely never would have considered the brand. The Globe Hault ST launched at around $2,700, which is still a few hundred dollars more than value-priced short-tail cargo bike offerings from budget e-bike companies, but it brought the backing of a major bicycle company with it. There are horror stories of trying to get repairs done from mail order e-bike companies (though there are likely more success stories that we simply don’t hear about). On the other hand, taking a bike into a local bike shop for service is usually easy and painless.
Thus, in the process of developing a more entry-level sub-brand, Specialized has started reaching a much wider audience than it ever could have hoped to before.
A shift toward e-bikes is good for high-end brands
Low-cost electric bike companies are still critical for the growing US market, helping hesitant riders get their foot in the door without risking several months of pay.
But as US e-bike ridership continues to grow, more people are shifting a higher percentage of their transportation onto e-bikes.
The US market has long lagged behind Europe, but it has followed a similar trajectory, albeit several years later. Many US cities are currently working on improving their cycling infrastructure with better protected bike lanes, making cycling a more common option. Those that tend to ride their e-bikes for more miles throughout the week often gravitate to higher-priced models that require less maintenance and repair, as well as those that offer more options for local service and support when necessary.
Lower-cost e-bikes from budget companies will always be important. In fact, most of my e-bikes are from budget brands. The nicest e-bike I’ve ever bought was around $3,000, and I bought it already used to avoid paying even that much. But as nicer e-bikes grow their numbers in the US, the higher-end bike shop brands have shown that they’re ready to meet consumers in the middle with entry-level models that split the difference by thoughtful compromise on price and performance.
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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
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 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.”
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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Environment
Hyundai IONIQ 5 and IONIQ 9 lose the $7,500 EV tax credit: Here’s how you can still get it
In a sudden reversal, Hyundai’s new IONIQ 5 and IONIQ 9 EVs no longer qualify for the $7,500 US tax credit. Although this is a major blow to one of the top-selling EV brands in the US, there is still a way you can get the credit. Here’s how.
Hyundai EVs lose US federal tax credit in 2025
After setting another new US retail sales record last year, its fourth straight, Hyundai expected 2025 could be even bigger.
“With exciting new models like the IONIQ 9 and increased US production ramping up at our new Hyundai Motor Group Metaplant America in Georgia, I’m confident this momentum will continue,” Hyundai Motor North America CEO Randy Parker said.
Earlier this month, Hyundai announced its new 2025 IONIQ 5 and IONIQ 9, both made in the US, qualified for the $7,500 federal EV tax credit.
This was significant news because it was the first time Hyundai qualified since the Inflation Reduction Act (IRA) passed in 2022.
The upgraded 2025 IONIQ 5 and Hyundai’s three-row IONIQ 9 were among 25 EVs that qualified for the credit in early January.
According to the updated list from the Department of Energy (DOE) last week, Hyundai no longer has eligible EV models. The only Hyundai Motor Group (including Kia and Genesis) electric cars that qualify are the 2025 Kia EV6 and 2026 Kia EV9. Genesis, Hyundai’s luxury brand, also lost eligibility.
Hyundai began production at its new $7.6 billion EV plant in Georgia in October. The new 2025 IONIQ 5 was the first to roll off the assembly line, which will be joined by Hyundai’s three-row IONIQ 9.
Last year, Hyundai said it expected US-built models would qualify for a partial $3,750 credit until its battery unit with SK On came online, which was expected sometime in 2025.
Kia builds the new 2025 EV6 and three-row EV9 at its West Point, GA plant, enabling it to still qualify for the credit.
Meanwhile, Hyundai is still passing the $7,500 EV tax credit on through leasing. With leases starting as low as $199 per month, the new 2025 IONIQ 5 is still cheaper than a new Toyota RAV4.
With a bigger 84 kWh battery, the 2025 IONIQ 5 has a driving range of up to 328 miles, up from 303 miles in the outgoing model, which had a 77.4 kWh battery. It also gains noticeable design upgrades and now includes an NACS port for charging at Tesla Superchargers.
The IONIQ 5 was already the fourth-top-selling electric vehicle in the US last year. With more range, an upgraded design, and a Tesla NACS port, it will be even more attractive in 2025.
| 2025 Hyundai IONIQ 5 Trim | EV Powertrain | Driving Range (miles) | Starting Price* |
| IONIQ 5 SE RWD Standard Range | 168-horsepower rear motor | 245 | $42,500 |
| IONIQ 5 SE RWD | 225-horsepower rear motor | 318 | $46,550 |
| IONIQ 5 SEL RWD | 225-horsepower rear motor | 318 | $49,500 |
| IONIQ 5 Limited RWD | 225-horsepower rear motor | 318 | $54,200 |
| IONIQ 5 SE Dual Motor AWD | 320-horsepower dual motor | 290 | $50,050 |
| IONIQ 5 SEL Dual Motor AWD | 320-horsepower dual motor | 290 | $53,000 |
| IONIQ 5 XRT Dual Motor AWD | 320 horsepower dual motor | 259 | $55,400 |
| IONIQ 5 Limited Dual Motor AWD | 320-horsepower dual motor | 269 | $58,100 |
Hyundai launched a new promo last week. It offers those who buy or lease the new 2025 IONIQ 5 a free ChargePoint Level 2 EV charger. Alternatively, you can choose a $400 charging credit.
Are you ready to test Hyundai’s new electric vehicles for yourself? We can help you get started. Check out our links below to find deals on Hyundai, Kia, and Genesis EVs at a dealer near you today.
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