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US e-bike firm Rad Power faces shut down in January 2026
Rad Power Bikes has told employees it may shut down in January 2026 unless it secures new funding or is acquired, according to an internal email.
The Seattle-based e-bike company has faced financial problems after a drop in consumer demand and rising tariffs, leading to multiple rounds of layoffs in recent years.
Rad Power recently issued a Worker Adjustment and Retraining Notification to its Seattle headquarters, warning that 64 employees could lose their jobs as soon as January 9, 2026.
The company’s leadership said they are still seeking funding or a buyer, but a recent deal fell through.
If Rad Power cannot find a solution, all locations and departments would be affected, and operations would cease by January 9, 2026 or within two weeks after.
🔗 Source: TechCrunch
🧠 Food for thought
Implications, context, and why it matters.
Tariffs significantly increased landed costs since mid-2024
- After e-bike exclusions lapsed on June 14, 2024 1, Chinese-made models again paid the 25% Section 301 tariff, a U.S. trade authority used to levy duties on imports. In 2025, added International Emergency Economic Powers Act (IEEPA) actions plus reciprocal tariffs lifted total U.S. duties to about 55% on e-bikes, with 66% on most bicycles from May to November. Rates eased to roughly 45% for e-bikes, with 56% for bicycles, on November 10, 2025 2. These charges feed straight into landed costs, which include freight, insurance, and customs fees.
- With a typical price near $1,500 for Rad Power bikes 3, these tariffs add large per-unit costs that are hard to absorb or pass on to price-sensitive buyers.
- Exclusions for bicycle trailers and some helmets continued 2. E-bikes lost relief in 2024 1, which squeezed margins on Rad Power’s core line.
Independent repair networks could capture demand from 350,000+ Rad bikes if the company shuts down
- Rad Power has sold over 350,000 e-bikes 4, mostly in North America 4, which creates a big installed base that would need parts, batteries, and service if the company shuts down in January 2026.
- Batteries and other parts wear out over time, so a shutdown would boost demand for third-party suppliers and refurbishers with compatible components.
- Mobile services and local shops can target Rad owners in markets where the company ran retail locations, such as Denver 5. They can offer diagnostics and component sourcing that Rad previously handled.
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