Some of the world’s most ground-breaking inventions began in a garage. The Apple computer was developed and tested in the garage of Steve Jobs’ Silicon Valley home. HP and Mattel also began in similar modest spaces—all within the sunny state of California. It’s an unlikely setting for innovations of such scale, yet these small spaces have sparked some of history’s biggest technological and creative revolutions. Now, we can add Zero Motorcycles to that list. Zero Motorcycles, a line of electric motorcycles, began right here in Santa Cruz, California. While the idea may have started in the garage, it has grown to receive international acclaim, ushering in a new era of electric vehicles that will take the road by storm.

Santa Cruz Works has covered the feats of Zero Motorcycles for some time now. From celebrating its 15th anniversary in 2021, announcing new and exciting partnerships with companies like Polaris, Viatec, and Hero MotoCorp, to presenting its model lineups, our team has been excited to cover Zero’s progress in pushing the boundaries of motorcycle advancement. The company has just secured another impressive win; as of October 2024, it successfully closed a new funding round for $120 million. Its last funding round in 2022 procured $107 million from its partner companies, Polaris and Hero MotoCorp. With this substantial financial backing, Zero hopes to fund their continued expansion and the creation of new models for their annual rollouts.

Rocky Terrain: Future of Electric Motorcycles

Despite these accomplishments, the electric motorcycle market has been struggling lately. Many of Zero’s competitors, including Energica, an Italian electric vehicle company, have recently filed for bankruptcy. This trend has also been mirrored in companies like Cake, Fuell, and Sondors, where they have either been forced to find new leadership or have gone completely out of business. This begs the question: why are these cutting-edge companies on the edge of failure?

Like cars, these vehicles’ greener, electric options cost considerably more than their gas-dependent counterparts, whether that accounts for mileage, parts, or services. Take Livewire, Harley-Davidson’s electric motorcycle line. Unlike the aforementioned companies, Livewire is not necessarily bankrupt or on the precipice of failure but faces significant financial challenges. According to its Third Quarter 2024 Summary of Results, the company lost $22.7 million and sold only 99 of its electric models.

A Greener Future

Despite these obstacles, many experts believe that the cost of electric vehicles will gradually decrease as technology advances and production expands. One of these experts is Dan Quick, the head of communications at Zero. In an article addressing the gap between combustion and electric vehicle sales, Quick explains that the current rollout of electric motorcycles should be regarded as “gen-one” technology. While first-generation models often require newer and more expensive methods, the continued proliferation of electric vehicle production will eventually reduce costs. This trajectory has been enjoyed by various brands that have pioneered electric cars: Tesla has reduced prices from $3,000 to $19,000 across multiple models; Hyundai saw its electric base price lower by ~$3,000; and Nissan dropped their electric model by ~$4,000. These numbers will likely continue to plummet as we enter a new and unprecedented age of technological innovation.

With this new wave of funding, Zero Motorcycles will continue to forge a trail of progress that other electric vehicle companies are bound to follow. Before long, we’ll be able to leave our combustion-engine motorcycles parked in the garage and hit the road on electric bikes built for the future.

Santa Cruz’s Zero Motorcycles Raises $120 Million