The more test drives you can perform the more Tesla’s you will sell-it's that simple”. Watkins vividly remembers their first visit to the Tesla facility: “We just had so much fun in the car-we knew right there that we had to make an investment.” As the first institutional investor in Tesla, Valor would play a key role in not only guiding the Tesla team to take the material cost of the Tesla Roadster from $120,000 to $85,000, but also to build what they called a “sales machine.” “It is all about understanding the sales event,” Watkins explained, “and for the Roadster it was the test drive. “It is in my opinion one of the reasons why Fisker failed,” says Watkins, referring to the electrical car manufacturer that continued to operate with an Asian and Finnish supply chain until being forced to close their doors in 2013. While Musk had the courage to commit to a US Tesla factory, some competitors stayed with the complex international supply chain. When the cost to capitalize this supply chain at production volume was calculated it was quickly realized that it had to be simplified. Valor assisted in redesigning the complex Tesla battery pack supply chain which started with low cost labor in Asia, shipping to their European partner, Lotus, who assembled the vehicles in the UK before shipping them to the US. For example, an ideal target company may be one with high growth where management wants to keep their focus on their products, while Valor’s project managers and engineers will assist in optimizing the supply chain and sales processes based on critical market needs. Watkins started with an overview of the investments that Valor Equity Partners (“Valor”) targets – typically situations with high growth potential where more than just capital is required to scale the business. True to his eccentric description, Watkins arrived with ponytail, leather jacket and black leather pouch (which never went more than 12 feet from his sight). In his recent book on the life and career of Tesla CEO Elon Musk, author Ashlee Vance describes Watkins as an eccentric Brit who helped Elon and the Tesla team to understand the real cost of a Tesla, and how to bring it down to a level the market will accept. Partner and Head of Operations of Valor Equity Partners, Timothy Watkins, spoke to the chapter's CTPs and CTAs on October 10, and gave everyone an inside track of what it takes to be an operationally active investor and to make a real difference in its diverse portfolio companies.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |