This news is a bit out of the ordinary for electric motorcycle manufacturers. Stark Future (Stark), the maker of the popular Stark Varg MX electric motorcycle says that it has recorded its highest ever monthly revenue of €18.3 (~$20.5M) while delivering a positive EBITDA (earnings before interest, taxes, depreciation, and amortization) of €2.8 (~$3.1M). This means that Stark was able to deliver an approximate EBITDA margin (profit) a little over 15% for the month. Adding to the kudos, according to Stark, these financial results make it the “fastest-growing” company in Spain.
Fast Ride To Profitability
Stark’s road to record profitability comes after a little over two years of production. In a press release, Anton Wass, Stark’s CEO said:
“This achievement comes barely two years after Stark Future’s first commercial sales, remarkably faster than incumbent EV leaders, and more resembling the growth rates of some of the world’s most successful technology firms in history. We have been steadily approaching this profitability event, driven by the popularity of the off-road VARG MX, but the phenomenal reception of the newly available Stark VARG EX, the company’s groundbreaking street-legal Enduro model, has brought this landmark occasion.”
Comparison To Other Electric Vehicle Manufacturers
In light of the financial performance of other electric motorcycle manufacturers, Stark stands out as a company that quickly took itself from its startup phase, to a business concern that can boast about its positive profitability. In discussing its quick ride to being profitable, Stark compared itself to other electric vehicle companies both of the two wheel and four wheel varieties.
Stark says that Tesla needed 17 years to achieve sustained profitability and received billions of dollars annually selling regulatory credits to other automakers. In contrast, Stark says that its operations are funded through motorcycle sales alone. They also pointed to the Chinese company NIO who has a similar product driven revenue stream which they say only reached profitability after eight years.
Stark’s corporate headquarters. Photo: Stark Future
Getting To Electric Motorcycle Profitability
Stark says its primary ambition is to “…design, develop, and manufacture cutting-edge electric motorcycles to push boundaries of performance and set new standards for sustainability in the industry.” Going forward, Stark plans to remain focused in the Motocross and Enduro segments, in much larger motorcycle categories.
About their tech and manufacture, Paul Soucy, Stark’s Chief Technology Officer said:
“We will continue to innovate at the component level and in the greater model range so electric motorcycles in all categories can outperform traditional machines in every way.”
That is a pretty significant claim. It will be interesting to see whether Stark keep keep itself on the trail to meeting or exceeding their ICE counterparts while continuing profitability.
Can Stark Continue Its Success?
Stark’s quick rise to profitability is a positive marker for an industry that has seen hard financial times. Several electric motorcycle companies have already folded. Others like Harley-Davidson’s LiveWire brand would seem to a have a long and arduous road to profitability ahead of them if they are to succeed. Perhaps Stark has found the secret sauce of electric motorcycle manufacturing in a niche in which it can excel. We’ll keep you in the loop about Stark as more detailed info arrives about their machines and financial results.
