HOG Stock Falls as Harley-Davidson Shuts Down Production

  • Harley-Davidson (NYSE:HOG) announced today that it will fully suspend production for the next two weeks due to supplier concerns
  • HOG stock is currently down 9% on the news
  • The company has received plenty of attention lately with new bike announcements and expanded electric offerings
A close-up photograph of the tank to a Harley-Davidson motorcycle with raindrops on it.
Source: Alex Erofeenkov / Shutterstock.com

Harley-Davidson stock is down today after the motorcycle maker announced it is suspending all assembly and shipments for two weeks. According to the company, the suspension is due to concerns related to one of its suppliers.

“This decision, taken out of an abundance of caution, is based on information provided by a third-party supplier to Harley-Davidson late on Tuesday (5/17) concerning a regulatory compliance matter relating to the supplier’s component part.”

HOG stock has seen a fairly steep decline this morning in response to the news. Currently, the stock is down 9% on the day, making up the lion’s share of the company’s 13% year-to-date (YTD) drop. In recent years, Harley has enhanced its profit substantially by tightening up global operations and greatly reducing costs.

This Milwaukee-based company has been relatively immune to the cold streak in the market this year. While the S&P 500 continues to sink — down roughly 18% YTD — HOG stock has handily beaten the market, even given today’s selloff.

Demand for motorcycles actually increased during the pandemic, leading Harley to rapidly expand its selection of bike offerings. Just last month, the company revealed a new bike in its lineup, the Nightster. Dubbed the “next chapter of the Harley-Davidson Sportster legacy,” the motorcycle is the company’s newest mid-range offering.

HOG Stock Falls Despite Promising Electric Prospects

While combustion-based hogs are undoubtedly the company’s bread and butter, Harley-Davidson has also been unafraid to explore new horizons. LiveWire, Harley’s electric spinoff brand, has seen substantial interest in its emissions-less offerings.

LiveWire recently opened up pre-orders for its new S2 Del Mar motorcycle. The bike sold out in under 20 minutes. Take that with a grain of salt, however; the first run of the S2 was capped at just 100 units. It’s unclear when a wider offering for the bike will be available, but delivery is currently scheduled for spring  2023.

The S2 is the second iteration of LiveWire’s electric bike concept, following the LiveWire One. The One boasts a 110-mph top speed, 146-mile max range, 60-minute full recharge and a sticker price of $22,799. The bike itself is also a sequel to Harley-Davidson’s LiveWire model bike, the company’s first electric outing before establishing the LiveWire brand.

Harley even has its own line of electric children’s bikes, which have largely outsold their full-size equivalents. Clearly, even with production delays, the company has an elaborate and electrified vision for what its brands can be.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/05/hog-stock-falls-as-harley-davidson-shuts-down-production/.

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