This sounds like a failure in the orbital gears within the hub motor, but since you've just bought it, don't attempt any inspection or repair, just refer it straight back to the supplier, as it's clearly a serious problem.
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That's possible with induction coils in both roadway and on the vehicle, and as you say. it's more suitable for the lightest vehicles. The problem is that it's very inefficient. Using a very high voltage improves the energy transfer but incurs more leakage losses in the underground circuits. Lowering the voltage to overcome that means very low energy transfer efficiency, catch 22, either way there's the large energy losses we can't afford.
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You could try yours with that LPX battery when it's arrived and been charged, the bikes are both the same, then you'll know if it's the battery or not.
With that information you'll know what to insist on from the dealer or Powacycle, and if necessary demand a full refund or replacement bike which you'd be entitled to as the bike is clearly not fit for purpose.
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These MPs are all a bit smaller than the standard tyres on most electric bikes like the Kalkhoffs and eZee models, and the nearest to the standard ones is that 700 x 38C, it's only a bit narrower. As the tyres get narrower, the recommended pressures rise, so the 35 would be harder and more uncomfortable.
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