Rad Power Bikes, once the dominant force in North America’s e-bike market, is facing escalating turmoil after the U.S. Consumer Product Safety Commission (CPSC) issued an urgent warning, advising consumers to immediately stop using some of its batteries due to fire hazard and risk of serious injury or, even, death.
According to the CPSC, officials have documented 31 battery fires, including 12 incidents causing an estimated $734,500 in property damage. Some fires occurred while the bikes were idle or in storage.
A sinking ship?
The safety notice comes just one week after the company filed a Worker Adjustment and Retraining Notification (WARN) with Washington state regulators, informing employees of a potential “cessation of operations” as early as January 2026, if it cannot secure new funding or an acquisition.
The filing warned that a shutdown could affect 64 jobs, including executive leadership, customer support staff and mechanics. Executives described the move as precautionary yet acknowledged that Rad is actively seeking buyers and investors to continue operations.
Founded in 2007, Rad Power Bikes surged to prominence during the pandemic, experiencing a 297% spike in demand in 2020 and raising more than $300 million from investors over the next two years. But a mix of pandemic demand decline, increase in supply chain cost and a series of lawsuits and recalls send Rad into a multi-year downward spiral of layoffs, store closures, the end of its European operations and increasing financial strain.
In the latest CPSC filing, regulators noted that Rad “has refused to agree to an acceptable recall,” stating that the company told the agency it cannot afford to offer replacement batteries (which retail for around $550) or provide refunds to all affected customers, as typically required in a safety recall.
Rad argued that replacing every hazardous battery would “immediately put Rad out of business.” The company also defended its products, stating that its newer Safe Shield and semi-integrated batteries are not included in the warning and that the older batteries underwent and passed third-party testing.
“Rad is disappointed that it could not reach a resolution that best serves our riders and the industry at large,” the company said in a statement included in the CPSC notice. “Rad reminds its customers to inspect batteries before use or charging and immediately stop using batteries that show signs of damage, water ingress, or corrosion, and to contact Rad so we can support our riders.”
Rad Power Bikes has faced multiple public safety notices and recalls since the start of the pandemic, alongside several lawsuits, including wrongful-death and product-liability cases related to battery fires and alleged design defects.
In a letter to employees earlier this month, Rad leadership emphasised that efforts to secure new funding or strategic partnerships remain ongoing, and that “the cessation of Rad’s operations is not a foregone conclusion.”
But with a major federal safety warning now added to its challenges, the company’s future will hinge on whether it can stabilise both its finances and public confidence in the months ahead.
