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The 100-year-old toy company had a great nostalgic story, but it also had to diversify or die.

Radio Flyer has one of those incredible rags-to-riches stories attached. The Chicago-based company, known for its iconic little red wagons, was launched by a young Italian immigrant named Antonio Pasin, who came to Chicago practically penniless in 1914. A cabinetmaker who had trouble getting work in that field, Pasin dug ditches, washed vegetables, and took whatever work he could find, carrying his tools in a wooden wagon of his own design.

The wagons were a hit with his customers who wanted them as toys for their kids, so Pasin started making them under the name Liberty Coasters. By 1923, the wagons were metal instead of wood, and painted bright red. Radio was new, and so was flying, and because Pasin was enamored of both, the wagons became Radio Flyers. As the business expanded, he was known as a handshake guy—no contracts needed.

A near-century goes by, replete with ultra-cute photos of children being pulled by friends, siblings or parents in Radio Flyers. One hundred million were built, and the company put a billion wheels on the road. But in 1997, Antonio’s grandson Robert became CEO, and he soon realized the unprofitable, privately held company needed a thorough modernizing—or it would be out of business in a few years. “We simply had to diversify,” he said.

Today, Radio Flyer still makes those red wagons, but it also makes electric bikes and scooters, tricycles, bounce houses—and Teslas for kids. The factory on the west side of Chicago closed in 2004 (it’s the design office now), and most products are currently made in China. Now you can get a fold-up fabric wagon with a metal frame for $70, and models that are pushed like strollers or pulled like a wagon for $200 to $250.

The electric bikes, sold under the Flyer name, have only been around since last year, and they reinforce the family orientation. There are two models, both very retro styled, offering pedal assist and a throttle. The $1800 M880 is a mid-tail cargo bike, capable of hauling 300 pounds. It has five-level pedal assist, an LCD display with an odometer, a 500-watt rear hub motor, both a brake and an LED headlight, and a 48-volt, 720-watt-hour battery. It can reach 20 miles per hour, and cruise 30 to 50 miles on a charge (one online tester got 60 miles at level two). It weighs 70 pounds—not a lightweight. Of course, baskets and car seats are available accessories, but a rear cargo rack is standard.

The $2000 L885 is a longtail with the ability to carry two extra passengers—it has 400-pound payload capacity. Electric bikes range up to $10,000 or more, so these aren’t on the higher end. “Our reputation is for high quality, durability and lower prices,” said Pasin. “We’re aiming the bikes at families, and helping them replace car trips with bike trips. We get emails from parents who use them to pick up their kids in the school drop-off zone.”

The red test bike, an aluminum-framed M880 with a cloth front basket and a water bottle holder, is on the large side, and gives off an air of solidity. The styling is low-slung and retro, perhaps suggesting a 1930s motorcycle. The battery is integrated into the frame, but is removable for indoor charging. Both the seat and handlebars are adjustable.

The weight of the bike is apparent, but it’s not an issue on the road, thanks to a multiplicity of power, gear, and mode options. Buttons control five levels of pedal assist—and level one is adequate for level cruising, with subtle assist. Level two offers a turbo-like boost and is good for mild hills. Vigorous pedaling brings on more power but the motor remains very quiet. The right-hand throttle is great for passing with short bursts of very controllable speed. Overall, the bike feels very stable.

The Shimano seven-speed shifter uses a pushbutton for upshifting and a lever for going back down. Fourth gear is a happy place for pottering around the neighborhood. The basket can accommodate an urban grocery run, and there are two loops to strap in bottles.

Pasin believes in customer surveys, and 99 percent of his respondents said they’d never been on an electric bike. He expects the US e-bike market to grow dramatically, and there are a number of new models in development. “Until you ride one, you won’t get it,” he said. “It’s a way for people in their 50s or 60s get back on a bike—it can flatten the hills for people and put the wind at their backs. We are working to become a major player in e-bikes.”

Radio Flyer’s e-bike sales are proprietary, Pasin said, but he describes them as “a strong start.” According to Mordor Intelligence, the global e-bike market was $27.22 billion in 2021, and will grow steeply to $54.48 billion by 2027.

The Tesla toys, both Flintstones-type “foot to floor” and electric powered, were introduced six years ago (through a partnership with Tesla Design Studio) and have been good performers. “The CyberQuad—a version of Tesla’s Cybertruck—sold out in 24 hours,” Pasin said. The latter, with a 36-volt lithium-ion battery, is good for 10 mph and 15 miles of range. Hot Wheels also makes “Teslas” under license.

Nostalgia is great, but little red wagons that need to be pulled with people power may not meet everyone’s 2022 transportation needs. Electric motors are hot for the auto industry, and for 100-year-old toy companies, too.