BAD NEWS

[Rix]

Well since the bikes are now useless from what the internet tells me I decided to take out my anger and launch mine at a ktm rider this weekend! Lol Yes it landed on his rear wheel 20 yards away. Gotta love torque and a sticky rear tire!View attachment 1302

Did you damage anything?

 

[snydes]

Well since the bikes are now useless from what the internet tells me I decided to take out my anger and launch mine at a ktm rider this weekend! Lol Yes it landed on his rear wheel 20 yards away. Gotta love torque and a sticky rear tire!View attachment 1302

What a shot!

 

[Drtjumper]

Not really, just ripped the line off the fitting on the left hand rear brake (simple fix) and ripped the rear fender off the subframe which is mounted completely retarded to begin with (I already have a much better fix that I will post up when it's done. Gets rid of those stupid brass inserts and all the Phillip's screws)

 

[Matt Sanders]

I'm anxiously awaiting more information about this. I knew when I bought it I was taking a chance, but I didn't really expect things to go this way. I just want to hear that I can still get parts, warranty is still valid, ect... Two weekends ago, I had the Alta camping with some friends who were no longer interested in dirt bikes, several of them rode the Alta and were so blown away they said they were literally going to buy one.. One friend went to visit a local dealership with cash in hand just hours before Alta announced they were closing . The dealer didn't have a bike to sell him so he walked away.

I agree to a previous comment that Alta's marketing efforts may have been to the wrong people. I see this bike as opening up new markets and re-invigorating people who have lost interest in the sport. Not everyone is interesting in soaring over triples at full tilt every time they ride. (lets talk casual riders, females, trail riders, ect) This is a high performance bike that literally anyone can ride well. Ease of use and maintenance are off the charts.

For me the Redshift EX has been exceptional as a trail machine and it's the most fun city bike I've owned. I have never owned a dual sport that could do both so well. (including my 701). I really hope this works out as my plan was to keep riding the Redshift EX until the next generation comes out and then give it to my wife. I have no interest in buying or maintaining a gas dirt bike at this point. (Exception: The Yamaha T7 if they ever launch it - but that's for a totally different purpose) Fingers crossed.

 

[Bionicman]

Current Job Openings at Alta Motors


There are no current openings.

 

[Silent But Dirty]

Current Job Openings at Alta Motors


There are no current openings.

I saw that too. I've been checking that page literally every day for the past two years

 

[TCMB371]

Awefully quiet today. Anyone hear anything ?

 

[Silent But Dirty]

I'm sure Marc will chime in here once he is able to... I hope

 

[BenEXR]

I can't imagine that anything is going to be known right away, never mind an investor/group of investors that is going to come/swoop in and save a company that might not be financially viable and unfortunately, in light of what has happened, the company is more than likely not financially viable. I think they have run out of money to operate. They have burned through all the cash and there has been no other interest from any other investors thus, the only solution was to "cease operations."

I also can't help but to think of the Shark Tank when they ask for numbers and they get something like;

"We have sold $30,000,000 worth of Redshifts."

"How much did it cost to produce that $30,000,000?"

"$70,000,000"

"What do you now need the $50,000,000 for?"

"So we can produce and sell the 300 ordered bikes for $3,600,000 as well as for the promotion of all the events we have been entering, operating costs, salaries . . ."

I can see the investors, all of them going over all of the details regarding Alta Motors and all of them ending up with an "And with that, I'm out."


Lastly, the decision to cease operations has to have been the last resort, the worst case scenario that the ownership wished to avoid at all costs. If there is no clear path to profitability and the cost to put a bike in a customers hands is more than the bike is being sold for . . . . I can't see those in charge of Alta Motors saying or thinking 'Lets cease operations for now. Send everyone home. Shut down the employment section of the website. It will be good for business. It will get our name out there and generate MORE interest. It will be good for business in the long run.'

Just like the old joke about boat building, "How does one make $1,000,000 in the boatbuilding business? Start with $2,000,000. "

The (cash) burn-rate just has/had to be so much more than the amount of money being taken in by the sales of the bikes.

 

[Philip]

Purchased batteries aside, the Redshift should cost much less to produce than the gas bikes. So, with proper manufacturing capabilities, and a high enough scale, it should be very competitive in the marketplace. Perhaps even cheaper than the gas bikes with all their pistons, cranks, pumps, gearboxes, starters, starter batteries, ignition systems, filters and exhaust pipes.

 

[Philip]

Purchased batteries aside, the Redshift should cost much less to produce than the gas bikes.

Perhaps this is why KTM does not sell the batteries for the Freeride but leases them. A lower sticker price and no worries about the battery life or warranty. They get their money from you over time.

 

[Rix]

I'm sure Marc will chime in here once he is able to... I hope

Hey Marc, chompin at the bit here.

 

[leeo45]

I can't imagine that anything is going to be known right away, never mind an investor/group of investors that is going to come/swoop in and save a company that might not be financially viable and unfortunately, in light of what has happened, the company is more than likely not financially viable. I think they have run out of money to operate. They have burned through all the cash and there has been no other interest from any other investors thus, the only solution was to "cease operations."

I also can't help but to think of the Shark Tank when they ask for numbers and they get something like;

"We have sold $30,000,000 worth of Redshifts."

"How much did it cost to produce that $30,000,000?"

"$70,000,000"

"What do you now need the $50,000,000 for?"

"So we can produce and sell the 300 ordered bikes for $3,600,000 as well as for the promotion of all the events we have been entering, operating costs, salaries . . ."

I can see the investors, all of them going over all of the details regarding Alta Motors and all of them ending up with an "And with that, I'm out."

Lastly, the decision to cease operations has to have been the last resort, the worst case scenario that the ownership wished to avoid at all costs. If there is no clear path to profitability and the cost to put a bike in a customers hands is more than the bike is being sold for . . . . I can't see those in charge of Alta Motors saying or thinking 'Lets cease operations for now. Send everyone home. Shut down the employment section of the website. It will be good for business. It will get our name out there and generate MORE interest. It will be good for business in the long run.'

Just like the old joke about boat building, "How does one make $1,000,000 in the boatbuilding business? Start with $2,000,000. "

The (cash) burn-rate just has/had to be so much more than the amount of money being taken in by the sales of the bikes.

The comments about profitability and viability would not need to be accurate for the company to be in this situation. ALTA is a private company and I don't have inside visibility to their financial reports so I am just speculating on the more optimistic side of the coin. This is based on my own involvement with several profitable, fast growing companies and some digging related to ALTA's situation ....

ALTA is a start-up, high growth company that found itself with an unexpected and immediate $40M+/- shortfall in working capital due to HD pulling out of their corporate funding agreement. I don't believe the HD agreement has been published but that is the funding value in the rumor mill and it is in the logical range. It is very difficult to round up that kind of money overnight if you want to maintain control of your company. A fast growing company can be making very good margins on a unit basis with a very bright future and a completely viable business plan, but it will quickly run out of cash without outside capital simply due to the rate of growth. It is probably accurate to guess that the 2018/19 ALTA business plan assumed access to the HD money and therefore included a growth rate and an expense rate materially higher than they can afford without it. This is likely what precipitated the current crisis.

Shutting operations is a very difficult call due to many factors including the adverse market perceptions which are exploding on the interwebs. However, completely running out of money and triggering formal bankruptcy could have weakened the leverage they have with potential investors ( despite offering some legal protections). There are some smart people involved with this company and some very mature lead investors already engaged, so there is reason to believe they are pursuing a logical, although difficult path.

For all of us on the outside of these negotiations there is not much to do but wait. ... and speculate with our opinions on the internet .... and go ride our ALTAs

 

[BenEXR]

I'll bet that by now, potential investors have viewed Alta Motors' books/numbers many times over and don't like what they have seen.

Just like Harley Davidson and their antiquated motorcycles that no one wants anymore(never mind all the other "cool" motorcycles out there), there are NOT enough people willing to pony up to buy a Redshift and definitely not enough waiting in the wings to get into the sport of MX/Enduro/Trials/Trail-riding-whatever two wheeled pleasure that we all find so much fun and that there is the simple, fundamental problem thus, that there is no one left willing to take on the risk for what must be little to no gain in electric MX/dual sport motorcycles. A sport that must have either a flat or a declining participation curve.

It is no different than why Ford has all but abandoned sedans and passenger cars for crossovers and SUV's. There is simply no demand.

 

[schwankl]

Been off the internet (riding in south utah blissfully on a mxr and exr) since before the news... now back online, and very much want some more info. @Judaslefourbe what was that about 8am monday?

re: 44mil of the company's burn - maybe design in cali, make in some other lower-costing state would be a better model? Ever see what a million dollar house looks like in the bay area? Its usually a condemned small unit or rancher at best.

Regardless, alta has some great tech - hopefully some disgruntled employee (this shutdown/layoff and sell sounds like founders want to screw over employees) will "open source" some stuff so we can make our own maps, and maintain.

 

[KTM_E-XC]

Alta has been bought by a major mc maker. That’s a done deal. Just needs to be made public.

Next week will be the reveal at the latest.

 

[Altaracer929]

Hi all, sorry for the vague and ambiguous news. I know there are a million questions, and you all deserve answers. We should be able to share a little more next week, so please hang tight.

-Marc

Is this the quote of a man who is losing his Motorcycle Manufacturing Company? No, it's not. We all know the Alta Redshift is a phenomenal motorcycle, extraordinary motors, incredible handling, excellent brakes, and great suspension. It's a real deal racing motorcycle equal in many ways to a ICE motorcycle. The build and quality of this electric battery powered motorcycle is unprecedented technology. Alta only closed down production with such short notice I assume is because investors or purchasers wanted it done to quickly work now to complete the deals needed to insure this motorcycle continues to be built and sold.

As Honcho (Marc Alta owner) says they should be able to share a little more this week, so hang tight.

I know this motorcycle will continue to be built and sold in the near future.

 

[Silent But Dirty]

Alta has been bought by a major mc maker. That’s a done deal. Just needs to be made public.

Next week will be the reveal at the latest.

I'm not looking for specifics, but can you at least share how you became aware of this info? Is your source credible?

 

[Butch]

I’m laughing about the rumors. We just don’t know, and some of us are pretty close.

Here’s a good one:
The rumor I've read on FB came from a (Former) Alta employee..
Paraphrasing but, "CEO told us yesterday that all the parts, bikes and equipment are going to be auctioned off to pay vendors that are owed ridiculous money. Received 15 pallets of wp suspension on Monday. Everything will be liquidated ASAP. A case of poor management"

And another:
“by killing Alta, the folks at the top got a nice severance package and ending any all stocks/profit sharing perk etc. Which opens Alta up to being bought out by a whole new entity and starting over completely fresh on their terms.“

Speculative uninformed bullshit. I think we will all be fine, and I’m pretty confident Alta will be too.
Humans. Fucking hilarious.

 

[OneLapper]

I ran the JDay Mohawk GP this past weekend. Some of the kids/young men were brutal. I overheard a dozen comments about Alta shutting down, explanations ranged from "electric fucking sucks" and "nobody wants electric", and on the other end of the spectrum was "HD killed another one" and "too bad, in 10 years we'll all be riding electric". One teen offered me $50 for the bike because it was "obsolete". Gone were the murmurings of "hey, an Alta, cool......"

The comments seemed proof enough that Alta did some image damage. I really hope they had no choice, and really really hope they pull out of this.