Live StreamInterview with Alta Motors Co-Founder Marc Fenigstein TODAY

[Philip]

Interview with Alta Motors Co-Founder Marc Fenigstein TODAY - Adventure Rider

 

[TCMB371]

sweet! I'm tuning in.

 

[Silent But Dirty]

sweet! I'm tuning in.

Count me in too!

 

[Silent But Dirty]

That was good.
Makes me feels sad, but also really happy that I am one of the lucky few to have one of these historic bikes sitting right here in front of me.

 

[TCMB371]

It was great to hear from Marc, but if i'm being honest, it was kind of annoying getting all of the "well i cant really talk about it..." kind of responses. Maybe i'll have to lure Marc out for a beer some time and get him to talk

 

[Silent But Dirty]

It was great to hear from Marc, but if i'm being honest, it was kind of annoying getting all of the "well i cant really talk about it..." kind of responses. Maybe i'll have to lure Marc out for a beer some time and get him to talk

The Kevin Whindam story was pretty good.

 

[Philip]

That was good.
Makes me feels sad, but also really happy that I am one of the lucky few to have one of these historic bikes sitting right here in front of me.

Some day we will be like Baldy, sitting in our rocking chairs and reminiscing how we had been part of General Magic or Alta Motors.

 

[Mark911]

I didn't get my question in until late so it wasn't addressed, but I was curious what battery format and chemistry Marc had in mind when he stated that "now" he thought an electric could be made that was weight/power/range competitive with gas in MX (I assume he meant semi-pro/local pro racing).

Bryans question elicited the most honest response all night; that without parts, all our bikes will eventually become paperweights, some sooner than later. That he appreciated all us early buyers for the confidence and support we showed and to all the buyers. I just can't understand that with such good sales growth they couldn't get more venture money or attract new money. I think the other side of the ledger didn't look as bright as the sale figures.

 

[Rashid510]

Good interview. More higher level for some, but was pretty good.

It was great to hear from Marc, but if i'm being honest, it was kind of annoying getting all of the "well i cant really talk about it..." kind of responses. Maybe i'll have to lure Marc out for a beer some time and get him to talk

I think the internet has figured out most of what happened to Alta. But the grittier details are good.

I just can't understand that with such good sales growth they couldn't get more venture money or attract new money. I think the other side of the ledger didn't look as bright as the sale figures.

Business 101. When your trying to iterate on a product, push to production, manage changes and speed that x10 (similar to the Tesla model). Money gets spent quite alot. Also tough when your also marketing to a small niche.

 

[Mark911]

[QUOTE="Rashid510,
Business 101. When your trying to iterate on a product, push to production, manage changes and speed that x10 (similar to the Tesla model). Money gets spent quite alot. Also tough when your also marketing to a small niche.[/QUOTE]

That was kinda my point. Revenues looks good but expenses (the other side of the ledger) didn't. However, at that stage in the game I wouldn't think it unusual. Most savvy invertors would view that as a short term situation and look beyond at the real potential once costs got better controlled. Of course, that assumes there was some evidence that those expenses could EVER be brought in line with whatever sales forecasts they had. Apparently, the investment community determined they could not be, at least in the timeframe they typical demand in exchange for their money. Again, totally speculating here, I wonder why nobody had any faith the company could bring those expenses under control? Bad subcontracts? Poor supply chain? Lack of fiscal discipline? Too much waste? Labor costs? Operating costs? Pet projects? Excessive R&D? Too many engineering changes? These things usually boil down to a few basic causes, its just business 101.

 

[Fog 25]

Great insight If any one here ever talks to Marc (this goes to all the x employee) tell him Thanks for development of the MXR. Been riding for over 50 years now and the last two have been the most enjoyable on the Alta. I think I would of hung up the boots if not for the Alta. When it becomes a paper weight I’ll still have the best Memories.

 

[Trialsman]

When Marc was talking about the entire experience of riding I thought back to what sold me. I had no intention of another buying a bike, much less an electric bike. What impressed me was the power, suspension, handeling, but it was my ability to HEAR the traction as I went through the woods. At trials speed coming out of a mud hole, I could hear when each row of knobs would slip on a diagonal root and the next row would catch hold. That was a whole new level of the riding experience I had never had. Three Altas later I still love that experience, and like I have written before, I haven't even started my KTM FreeRide since I bought that first Alta. They had a great idea and the bikes we got are spectacular. I only wish they had been given the chance to let us see what was in the back of their minds for future motorcycles.

 

[Philip]

The investors need to see a clear exit strategy before they invest more money. With Harley pulling out and threatening to sue, KTM pulling out, and the recently expanded company continuing to burn cash, they didn't have many choices. They were ready to sell to the first guy who offered them some money.

 

[Matt]

Elon should hire everyone that ran that company to build Tesla the cyber squad and resurrect Alta 2.0 in the process. A guy can dream.

 

[Mark911]

The investors need to see a clear exit strategy before they invest more money. With Harley pulling out and threatening to sue, KTM pulling out, and the recently expanded company continuing to burn cash, they didn't have many choices. They were ready to sell to the first guy who offered them some money.

There were lots of symptoms as you mentioned, but what was the disease? Why did everyone split? Why couldn't Alta make a compelling business case that could convince investors to hang on even in light of some conflicts? If it was a case of initial investors simply tired of waiting and wanting to stop the bleeding I can see that. But that's exactly where new investors would want to jump in as the groundwork has already been paid for by someone else! Why didn't they (jump in)? Obviously, Alta couldn't show any light at the end of the tunnel, but why?

I'd be fascinated to know where all that investor money went and do some analysis. At 100 employees they should know where every cent was spent and the rationale for spending it. Even very subjective expenditures like R&D can be measured against a plan and have money spent compared to money earned. Burn rate shouldn't be a consequence to operation but a result of a carefully crafted and executed plan with thousands of well documented and measurable milestones and associated earned value. Even change (deviation from plan) can be measured and assigned value (negative and positive).

So where'd all the money go and why couldn't Alta show a viable way forward? If nothing else, knowing some of the lessoned learned might help some of the members of this forum from making similar mistakes in their own businesses.

 

[Philip]

Elon should hire everyone that ran that company to build Tesla the cyber squad and resurrect Alta 2.0 in the process. A guy can dream.

Tesla Model MX! I think Elon would love this idea! He did speak of electric motorcycles before. Our resident ex-Tesla employees should pitch this to him. @Judaslefourbe

 

[Philip]

If it was a case of initial investors simply tired of waiting and wanting to stop the bleeding I can see that. But that's exactly where new investors would want to jump in as the groundwork has already been paid for by someone else! Why didn't they (jump in)?

New investors wanted to jump in. But it was too little and too late, as the leading investor offering the most money, BRP, wanted just the IP and the tech and not the motorcycle production business.

 

[Judaslefourbe]

As Rashid mentioned, it's all in the details (and in my opinion), the issue was not coming from the balance sheet.

 

[Mark911]

As Rashid mentioned, it's all in the details (and in my opinion), the issue was not coming from the balance sheet.

Are your referring to the technology, leadership or some conspiracy? It's a rhetorical question, no need to answer.

 

[F451]

I found the interview sort of interesting, but as mentioned they missed all the interesting stuff like:

1. What happened with Harley Davidson specifically/why did Alta go under?

2. Does he knows if BRP is ever going to do anything with the Alta technology or are they planning on just keeping it buried?

3. Does he know if any of the majors are going to produce an Alta comparable dirt bike anytime soon, and if not, why not?