Harley-Davidson’s electric bike to hit the streets in 2019

Harley-Davidson (HOG) unveiled its strategy to launch new products, expanded access and an improved dealer network. The latest ensemble includes electric motorcycles and even an electric bicycle. The motorcycle maker has planned to start selling the first electric motorcycle, LiveWire, in 2019 that comes with clutch-less technology.

Harley has set its standards high with an intention to achieve over $1 billion in new annual revenue in 2022 by bringing out the new strategy. The company also expects to drive revenue growth and expand operating margins by its new strategy and objectives. Experts believe that these strategies could inch the company towards its goal of achieving the revenue target.

The company is depending heavily on the new products that include smaller motorcycles for Asia emerging markets, new 500cc and 1250cc mid-weight motorcycles and improved heavyweight motorcycles. In 2020, the company has planned to launch the adventure touring Pan America 1250 motorcycle, and the 975cc Streetfighter model. The 1250cc all-new custom motorcycle will be released in 2021.

Also, Harley-Davidson has set a broad range of future electric models for availability by 2022. This also includes an electric bicycle too that could see the stores in 2022. Riding these new products could turn the company to improve its return on invested capital, and increase revenue and earnings. This will allow the company to return more cash to shareholders.

Cost-wise, the motorcycle maker, which intends to spend $150-180 million on electric vehicles through 2022, expects to invest $450-550 million in operating and $225-275 million in capital through 2022. The company is depending on the comprehensive cost reduction and reallocation of previously planned investment and resources for controlling the huge cost involved in the products.

Related: Electric motorcycles: A ride for Tesla to profitability

In the 2018 shareholder meeting, Elon Musk made it clear that Tesla (TSLA) will not make any electric motorcycles due to a near-death incident that happened when he was young. The escalation of electric motorcycles in the market has been on the upward trend of late.

And, with Tesla’s non-entry, Harley-Davidson could dominate and pave the way for its growth in the industry. But the company has to face Zero Motorcycles, which has been selling diversified electric motorcycles since 2006. Zero opened a new exclusive dealership in Orange County, California recently. Zero’s move is trying to give stiff competition to Harley-Davidson.

An hour before close, shares of Harley-Davidson is trading down 0.03% at $44.37 on the NYSE. The stock has been down 12.89% for the year-to-date and 9.29% for the past year.