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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Ford is jumping into the battery energy storage business, betting that booming demand from data centers and the electric grid can absorb the EV battery capacity it says it’s not using.
To achieve this, Ford plans to repurpose its existing EV battery manufacturing capacity in Glendale, Kentucky, into a dedicated hub for manufacturing battery energy storage systems.
Ford pivots from EVs to battery storage for data centers
Ford says it will invest about $2 billion over the next two years to scale the new business. The Kentucky site will be converted to build advanced battery energy storage systems larger than 5 megawatt-hours, including LFP prismatic cells, BESS modules, and 20-foot DC container systems — the kind of hardware increasingly used by data centers, utilities, and large-scale industrial companies.
The company plans to bring initial production online within 18 months, leaning on its manufacturing experience and licensed battery technology. By late 2027, Ford expects the business to deploy at least 20 gigawatt-hours of energy storage annually.
The move follows a joint venture disposition agreement reached last week between Ford, SK On, SK Battery America, and BlueOval SK. Under the agreement, a Ford subsidiary will independently own and operate the Kentucky battery plants, while SK On will fully own and operate the Tennessee battery plant.
Ford is also planning a separate energy storage play in Michigan. At BlueOval Battery Park Michigan in Marshall, the company will produce smaller amp-hour LFP prismatic cells for residential energy storage systems. That plant is on track to begin manufacturing in 2026, and it will also supply batteries for Ford’s upcoming midsize electric truck — the first model built on the company’s new Universal EV Platform.
Electrek’s Take
Overall, the shift reflects Ford’s broader push toward what it calls “higher-return opportunities.” Alongside taking a step backward to add more gas-powered trucks and vans to its US manufacturing footprint, Ford says it will no longer produce some larger EVs, such as the Lightning F-150, where softer demand and higher costs are resulting from the lack of support for EVs by the Trump administration. (Batteries produced at the Glendale plant were for the all-electric Ford F-150 Lightning. The best-selling electric truck in the US in Q3, before the federal tax credit expired, was the Ford F-150 Lightning, with 10,005 EVs sold, a 39.7% year-over-year increase.)
With tax credits eliminated and regulatory uncertainty, Ford is pivoting to adjacent markets, including grid-scale and residential energy storage, to keep its battery plants running and justify billions in sunk investment.
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Stellantis may have backed away from planned EVs like the all-electric Ram REV and range-topping Dodge Charger Daytona R/T EV, but the company isn’t standing still. A newly awarded patent outlines an innovative, foam-based thermal runaway suppression system that’s built into an EV’s battery pack.
The indisputable fact of the matter is that electric vehicles catch fire far less often — and far less frequently — than their combustion-powered brethren. Still, a number of highly-publicized early Tesla fires and poorly managed recall on the first-gen Chevy Bolt have linked “electric car” and “fire” in the minds of many Americans, and the ones who have been waiting to test the EV waters until a better safety solution came along are going to absolutely love this latest setup from Chrysler parent company Stellantis.
MoparInsiders is reporting on a new Stellantis patent awarded on a proactive battery safety system that’s designed to stop thermal runaway (read: fire) before it can cascade through an entire EV battery pack.
Rather than relying solely on passive barriers or post-event containment, Stellantis’ freshly patented system uses strategically placed foam channels and deployment mechanisms that can flood the affected cells with high insulation foam when abnormal heat is detected in a cell, isolating the problem area and dramatically slowing (if not outright stopping) the chain reaction that leads to catastrophic battery failure.
The patent describes an electric car battery that, on the outside, will look familiar to EV enthusiasts, but there are some key differences “layered in” around the familiar bits. These include:
- A bladder filled with a fire-retardant chemical; located close to the battery cells, typically between the cells and the top of the pack. It’s made from a flexible polymer, so it can be punctured when needed
- Two sets of blades; the first aimed at the bladder, ready to pierce it and release the fire-retardant chemical while the second targets specific points on the coolant inlet line, outlet line, or heat sinks to rupture them and release cooling foam directly where it’s needed
- Special coolant line sections; designed with small sealed apertures that closed off with a soft plug material that’s easy for the blades to pierce but strong enough to maintain pressure during normal operation
- Actuation devices tied to a controller; that push the blades into the bladder and coolant components when a thermal event is detected
Special coolant lines
The system relies on a suite of existing temperature sensors throughout the battery pack, and seems like a viable enough solution to a problem that, while rare, certainly exists — and which looms large over America’s Early Majority tech adopters.
As for me, I think Stellantis should focus on bringing more compelling products to market and stop looking for ways to blame the customer, market, and government for its inability to sell Jeep products that, apparently, have enough markup to cover nearly $30,000 in discounts to help dealers move their metal. I look forward to hearing about your take in the comments.
SOURCE | IMAGES: US Patent Office, via MoparInsiders.
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It’s official. The all-electric pickup is dead, but Ford is promising the F-150 Lightning EREV will be “every bit as revolutionary” as it shakes up EV plans once again.
Ford reveals next-gen F-150 Lightning EREV
Ford confirmed production of the current F-150 Lightning has ended as part of its updated Ford+ plan, which the company revealed on Monday.
The changes come as part of a broader shift from larger EVs, like the Lightning, to smaller, more affordable models.
While Ford still plans to launch lower-cost EVs based on its Universal EV Platform, the company is expanding its hybrid and extended range electric vehicle (EREV) lineup. By 2030, Ford expects 50% of its global volume to be hybrids, EREVs, and EVs, up from 17% in 2025.
As part of its new plans, Ford said the next-generation F-150 Lightning will switch to an EREV powertrain. It will be assembled at the Rouge EV Center in Dearborn, Michigan, replacing the current all-electric pickup.
With production of the current-generation Lightning now concluded, Ford is sending workers from the Rouge EV Center to its Dearborn Truck Plant as it doubles down on gas and hybrids.
During its Q3 earnings call last month, Ford said the electric pickup would remain paused following a fire at Novelis’ plant in New York that disrupted aluminum supply.
The F-150 Lightning is a “groundbreaking” vehicle, according to Doug Field, Ford’s chief EV, digital, and design officer, that showed an electric pickup can be a great F-Series.
Field claims the “next-generation Lightning EREV is every bit as revolutionary.” It will still offer 100% electric power delivery, sub-5-second acceleration, an estimated combined range of 700+ miles, and it “tows like a locomotive.”
Ford also plans to replace its electric commercial van for North America with affordable gas- and hybrid-powered versions. It will be assembled at Ford’s Ohio Assembly Plant.
The move comes as part of Ford’s plans to launch five new affordable vehicles by the end of the decade, four of which will be assembled in the US. Ford also plans to offer gas, hybrid, and EREV options across nearly every vehicle in its lineup by then.
The first vehicle based on Ford’s new Universal EV Platform will be a midsize electric pickup, starting at around $30,000. It’s expected to be about the size of the Ranger or Maverick.
The news comes after SK On announced last week that it planned to end its joint venture with Ford to build EV batteries at three US gigafactories.
Ford is now planning to use the wholly owned EV battery plants in Kentucky and Michigan to launch a new battery energy storage business. The company plans to begin shipping BESS systems in 2027, with an annual capacity of 20 GWh.
“The operating reality has changed, and we are redeploying capital into higher-return growth opportunities: Ford Pro, our market-leading trucks and vans, hybrids, and high-margin opportunities like our new battery energy storage business,” CEO Jim Farley said on Monday.
The changes are designed to improve profitability and returns. Ford’s EV business, Model e, is now expected to reach profitability by 2029 with improvements in 2026.
Model e lost another $1.4 billion in Q3, bringing the total to $3.6 billion through September. Around $3 billion was due to its current EVs, while the other $600 million was spent on its next-gen models.
Although sales of the F-150 Lightning dropped 60.8% last month following the expiration of the $7,500 federal EV tax credit, Ford’s electric pickup remained the best-selling pickup in the US through September.
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