Estarli, formed during lockdown by brothers Alex Francis, Oliver Francis and Barney Francis, filmed the Christmas advert last week around Berkhamsted.
The advert, which cost under £100 to make, is designed to highlight the versatility of their e20 eBike.
Co-founder Barney Francis said: “We want to offer a lockdown solution rather than dwell on the negatives.
“Just as Santa can get by without his sleigh, the e20 can help people get around without public transport.”
The advert sees Father Christmas cycling on roads, towpaths and bridleways in order to highlight the bike’s flexibility.
A sack full of presents is piled on a child seat before being substituted out so Santa can take a little girl for a spin under the Christmas lights.
Alex, from Berkhamsted, said: “As well as its versatility, we are most proud of the bike’s discreet look.
“We couldn’t put Santa on an ugly eBike with a cumbersome battery, could we? That would have just spoiled the magic!”
Estarli, which has a storage dept in Potten End, and a workshop is in King Langley, aims to help more people convert to electric power and stay healthy.
Oliver added: “It’s the eBike for everywhere. Granted, it can’t take to the sky, but most terrain is within its reach.
“The battery does over 50 miles and it has a sturdy frame with chunky tyres so it’s perfect for long shifts delivering happiness. Plus, you can fold it up for trains, car boots or chimneys…whatever you prefer really!”
The Estarli e20 is available for Christmas delivery, visit www.estarli.co.uk for more details.