Rad Power Bikes faces shutdown in January without new funding

Rad Power Bikes, a Seattle-based e-bike manufacturer, has warned employees that it may shut down operations in January 2026 if it fails to secure new funding or a buyer. An internal email viewed by TechCrunch revealed that while leadership is actively seeking solutions, including strategic partnerships and acquisitions, a recent promising deal fell through. The company has faced significant financial challenges due to a sudden drop in consumer demand post-pandemic, excess inventory, tariffs, and broader macroeconomic pressures. Rad Power has already undergone multiple layoffs in recent years and recently issued a Worker Adjustment and Retraining Notification (WARN) to its Seattle staff, indicating potential layoffs affecting 64 employees as early as January 9, 2026. Despite the turmoil in the micromobility sector, with several competitors like Cake, VanMoof, Superpedestrian, and Bird also struggling or restructuring, Rad Power was still regarded for producing compelling e-bikes. Earlier this year, the company replaced its CEO with Kathi Lentzsch