The Latest Scoop on Cake Motorcycles
Cake’s Battery Recall Saga Continues
Catch up on the latest with Cake Motorcycles as they hit a rough patch, facing a safety recall and bankruptcy rumors in early 2024. From failed funding rounds to challenges in selling high-end electric bikes online without test rides, Cake’s journey is taking a twisty turn.
We’re diving deep into what went wrong for this innovative bike company, including their struggle to meet sales goals and the complexities of their investor structure. Stay tuned for updates on Cake’s bankruptcy proceedings and what this means for electric motorcycle enthusiasts. Keep it here for the freshest news and insights on Cake Motorcycles’ bumpy ride.
Introduction
Hey everyone, let’s talk about Cake Motorcycles and the bumpy road they’ve been on recently. Remember back in January 2024, when the National Highway Traffic Safety Administration had to flag some of Cake’s Kalk dual sport bikes? Yeah, the issue was with battery cells that might just decide to burst into flames. At that time, Cake was like, “No worries, we’ll sort out replacement batteries for our riders later in 2024.” Fast forward to now, and things seem a bit more… complicated.
Bankruptcy Buzz Around Cake
On February 1, 2024, the buzz around the Swedish business news scene was all about Cake Motorcycles possibly hitting the bankruptcy button. RideApart have been trying to get a word from Cake about this, and i know they will definitely keep updated on this saga.
What’s Shaking Cake’s Foundation?
So, what’s really shaking things up at Cake? Well, Stefan Ytterborn, the big boss at Cake, spilled some tea to Dagens Industri, a Swedish financial paper. It looks like a combo of not-so-great stuff piling up. The final straw? Cake’s latest funding round didn’t just stumble; it face-planted on January 31, 2024.
A week before that, another publication, Breakit, had already painted a grim picture: Cake couldn’t even cover salaries for its crew of about 139 people. Ytterborn pointed out that we’re not just looking at a rough patch for Cake, but a bigger, chilly economic climate where venture capital’s playing hard to get, especially for growth-phase companies like Cake.
One big lesson for Cake? Assuming folks would happily drop around $3,811 (or 40,000 Swedish Krona) for a bike they’ve never test-ridden was a no-go. Cake tried to pivot by offering more test ride opportunities, which did boost consumer sales. Yet, even with about 6,000 bikes sold last year, Cake’s still not hitting the profitability mark they’re aiming for — which is selling between 7,500 to 10,000 bikes annually.
Then there’s the investor side of the drama. Cake’s got six different classes of shares, making the investment scene a bit of a puzzle. If you’re not in the top-tier share class, you might end up watching others get dividends while you wait. Not exactly enticing for new investors.
Official Word on Bankruptcy?
The Swedish Companies Registration Office has confirmed that Cake is indeed wading through bankruptcy proceedings as of February 1, 2024. The largest shareholders in the mix include the Swedish pension company AMF, Cake’s own Stefan Ytterborn, and several venture capital firms.
As of now, Cake’s keeping quiet on the matter. The last peep we heard from them was about expanding their distribution network in the Czech Republic. Stay tuned, though. We’re on it and will bring you updates, especially any official word from Cake, as soon as we catch wind of it.
Wrapping It Up
So there you have it, folks. Cake Motorcycles is navigating through some pretty choppy waters right now. Between the safety recall and bankruptcy proceedings, it’s an uncertain time for this innovative bike maker. We’ll keep our ears to the ground and eyes peeled for any new developments. Keep it locked here for the latest news on Cake and all things motorcycle.
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Dagens Industri, Breakit, Aftonbladet, The Pack, Electrek, Cake, Swedish Companies Registration Office, Rideapart
