Back to the original point,
HD is a branding company that happens to sells motorcycles. They've spent years pounding in the same message. At first it was a counter culture rebellion image that was aspirational, which shifted as the demographic aged into an image of tradition and true to it's roots. That demographic was large and went through a period of significant wealth expansion, which worked out well and HD capitalized. Humans want to have things others don't. Why? it was different. It was carving your own path, different from their parents. That same desire remains today. A younger generation wants to distance themselves from their parents, who are 'old and dated'. The same cycle repeats, but this time the expression of uniqueness is done through technical advancement (iphones, smart watches, social conscious, global awareness). HD made the strategic error of continuing to appeal to the same demographic longer than they should have. Why? There is significantly less wealth expansion for the younger generation today. Go where the money is, but this was short-sighted . In doing, they've accumulated both technical debt and a brand image debt trying to minimize input (research) and maximize revenue for today. They now need to claw out of the hole. Just look at the stock in the past few years and ask how many younger kids aspire to own a top of the line $40k harley. Crickets.
This product is the right step, even if few will buy one. A sacrificial SKU to generate a marketing image shift. Price it crazy to get the buzz and still appear premium for your traditional base. Don't sell to many or risk being seen as a sell-out to the loyalists. If you drop the price, you water down the "premium" aspect of the brand, even if that's the move they need to make to cater to a less-brand loyal more value-oriented audience.
Mistake?
Maybe not, wait for bike 2 or 3. Price those competitive as volume scales and your traditional buyer ages out of the market. You don't have to maintain the old image baggage. The first version won't be successful in terms of sales, but it is a polarizing point that helps shift the image of 'ye 'ol hog'. Give it 10 years, once the hipsters are middle aged, they will want to buy the original Live-Wire, since no one else did.