Rad Power Bikes and Luminar file for bankruptcy

The year 2025 is ending with a wave of financial distress for several mobility players, mirroring the bankruptcies of Canoo and Nikola earlier in the year. Rad Power Bikes has filed for Chapter 11 bankruptcy protection, which is the U.S. legal process for reorganization. The electric bike company is currently looking to sell the business within 45-60 days. Simultaneously, troubled lidar maker Luminar has also filed for bankruptcy following a legal fight with its customer Volvo. While the company will continue to operate during the bankruptcy process to “minimize disruptions” for its suppliers and customers, Luminar plans to sell off its business and will eventually cease to exist once the process is completed.

Outside of the bankruptcy filings, funding activity continues in other markets. In India, the online marketplace for used cars Spinny is raising around $160 million in a Series G funding round. The transaction will reportedly value the startup at about $1.8 billion post-money. Spinny plans to use the capital to acquire the car services startup GoMechanic. Meanwhile, in the e-bike sector, Brussels-based startup Cowboy has been acquired by ReBirth Group Holding. The acquisition includes €15 million ($17.6 million) from existing shareholders. Additionally, Nirvana Insurance, an insurance technology startup focused on trucking, raised $100 million in a funding round led by Valor Equity Partners, valuing the company at $1.5 billion.

In the regulatory space, an administrative law judge ruled that Tesla engaged in deceptive marketing regarding its Autopilot and Full Self-Driving software. The decision, which stems from a case involving the California Department of Motor Vehicles, could impact Tesla’s operations in California. This regulatory scrutiny comes amid broader shifts in the electric vehicle market. For instance, Ford is pivoting its production strategy by ending production of its F-150 Lightning to focus on an extended range electric vehicle version, though it remains committed to a midsized electric truck for 2027. Meanwhile, Slate Auto has collected more than 150,000 reservations for its electric truck due at the end of 2026, and Rivian has introduced hands-free driving across 3.5 million miles of roads in the U.S. and Canada.

Why it matters

The transportation sector saw a wave of bankruptcies at the end of 2025, including Rad Power Bikes and Luminar. This signals ongoing financial pressure for mobility startups, even as other segments like robotaxis continue to expand.