My Age of Investment

Chapter 1613: Some are happy and some are sad

 August 2, Magic City.

A fence has been quickly built on a piece of land that was very barren just last month, and countless workers and machinery and equipment came to the scene. The attitude of doing something big attracted the surrounding factories and workers to frequently They glanced sideways, asking which factory this was located in their big Pudong.

 As time passes to today, the answer to the mystery is finally revealed.

A group of foreigners in white shirts and blond hair visited the construction site, and held the "Fuxing Industrial Group and Tesla Motors Strategic Cooperation Signing Ceremony and Tesla Magic City Factory (Phase I) Groundbreaking" on a temporary platform. ceremony".

Although the venue and ceremony are simple, it can be said that the scene is full of big shots.

The ceremony was attended by leaders at all levels of the Shanghai Municipal Government, as well as Xia Jingxing, chairman of Fuxing Industrial Group, and a group of senior executives from Fuxing Automobile Company, as well as a group of Teslas headed by Straubel who came all the way from the United States. Core management member of La Automobile Company.

 In the audience, reporters invited to the ceremony raised their guns and cannons to record the wonderful moments and speeches on the stage.

 The core content mainly includes two points.

First, Renaissance Motors, which has been smeared and regarded as a threat by Wall Street investment institutions, has joined hands with Tesla Motors. The two car companies will each invest US$250 million for a total of US$500 million to jointly form a joint venture car company - Tesla (Modu). ) Ltd.

Second, the first phase of the construction project of Tesla’s Magic City Factory will be officially launched this month. The project will be constructed by the Magic City Construction Engineering Group. The Magic City Government will provide a supporting loan of up to 2 billion yuan for this major automobile investment project.

 It is expected that the first phase of the Modu automobile production plant will be officially completed in the first half of next year. After it is put into production, 30,000 Model X and Model S vehicles will be produced here every year.

 Such huge production capacity and ultra-fast construction and production speed will effectively alleviate the manufacturing problems currently faced by Tesla and greatly speed up the delivery of car orders.

In fact, for Tesla, this move can not only speed up the delivery of cars and convert the large orders in hand into real revenue and profits, but also take this opportunity to successfully enter China, the world's largest market. A country with a large automobile production and sales market has many benefits.

 For Fuxing Industrial Group and Fuxing Motors, which has just released its first model, establishing a joint venture with Tesla so quickly is not necessarily a good thing, but it is not necessarily a bad thing either.

I believe that in the next period of time, Fuxing Automobile will inevitably face the challenge of competing with joint venture car companies. If it is not strong enough, it may be outperformed by Tesla.

Of course, this can also be seen as a spur. With the pressure from Tesla, Fuxing Auto will definitely grow faster.

At the same time, half of the money earned by Tesla will flow into the pockets of Fuxing Industrial Group, continuously becoming a bullet for Fuxing Auto to increase R&D and product iteration.

 Some Tesla shareholders and directors have doubts about this. After all, no one knows whether Tesla will fall out with Fuxing Motors in the future. What if they become enemies?

Xia Jingxing blocked these people away with just one sentence. If he doesn't cooperate with Fuxing Automobile, how can he cooperate with Modu Automobile? Then you have to be liked by others.

At this time, electric vehicles have not yet become popular. Modu Auto Group holds so many joint venture projects that even if it agrees to cooperate with an industry newcomer like Tesla, it will not be given much resource allocation in the end.

 Similarly, other large state-owned automobile companies also have fixed partners, and they are not very fond of Tesla, the little brother of American descent.

Private car companies such as Geely, Great Wall, and BYD are quite interested in cooperating with Tesla, but they cannot compete with Fuxing Industrial Group at all, and they cannot compete in all aspects, whether it is capital or public and private relationships.

 In short, after some consideration, a group of Tesla shareholders and directors honestly agreed to cooperate with Fuxing Industries.

Thanks to the "Automotive Industry Policy" issued by the country in 1994, foreign investment in the production and sale of automobiles in China not only needs to be carried out in the form of joint ventures, but also "foreign parties cannot hold more than 50% of the shares in a joint venture automobile company."

  Therefore, Tesla’s idea of ​​taking more shares in the joint venture has also failed, and it can only accept the 50%:50% share ratio.

But Xia Jingxing also gave Tesla's American shareholders and directors some thought, expressing his willingness to transfer some shares to American Tesla based on Tesla's development achievements after the foreign automobile investment policy is liberalized.

 In short, we need to draw the pie first and whet the appetite of American shareholders.

 As for whether the shares will be transferred at that time and at what price, that is another matter.

 It is worth mentioning that the Shanghai government has continued its usual generous approach and has given Tesla the green light to enter and land in China.

With Huaxin’s gems at the forefront, the Shanghai government cannot afford to delay. It is cooperating with policy approvals and loan support as quickly as possible.

 They are still waiting for Xia Jingxing to fulfill all of his original investment commitments!

At this point, the dust has settled on Tesla’s entry into China, and all parties are happy.

Of course, when some people are happy, others will naturally be sad.

 …

 …

 David Einhorn, the new hedge fund tycoon on Wall Street, sat in his office, quietly looking at the several screens in front of him, speechless for a long time.

 Finally, he closed his eyes in pain.

 He admitted that he made a mistake and underestimated Tesla and Xia Jingxing.

Looking back on all the past events when the two of them happily worked together to short Lehman Brothers, they felt like they were in a different world.

There is no use thinking about this anymore, the relationship between the two will never be the same again.

 The top priority is to make a decision as soon as possible.

Einhorn, who had made a decision in his heart, opened his eyes, and a cruel look flashed across his face.

 There were only two choices before him. One was to admit defeat and close the position and "wear" the shorts Xia Jingxing mailed to him, resulting in heavy losses and embarrassment;

The other way is to choose to endure until the end and wait for a turning point. Einhorn didn't know how many axes Xia Jingxing had, but he expected that once such a person took action, he wouldn't have much room for resistance.

 But he is not alone, he also has helpers.

 Einhorn, who was proud and unwilling to admit defeat, quickly dialed the number of Bill Miller, manager of the Leggmanson Value Fund and the protagonist of the best-selling book "Beating the Standard & Poor's".

Bill Miller is recognized as a great person and master in the industry. From 1991 to 2005, he has outperformed the S&P 500 for 15 consecutive years, surpassing the previous record of the legendary Peter Lynch of 13 consecutive years of beating the S&P 500. He was once considered Considered one of the greatest fund managers.

However, this investment guru seems to have had a bad time in the past two years, and has encountered a nightmare common to many masters, that is, losing security in the late season.

  The old man first suffered a disaster during the financial crisis in 2008. The fund he managed suffered a huge loss of 58% that year. Then naturally, a crisis of investor confidence broke out, and the fund he managed suffered an unprecedented redemption by investors.

The scale of asset management has shrunk year by year, from the peak of US$20.8 billion before the financial crisis to a pitiful US$2.8 billion today.

 In just three or four years, the size of the fund has dropped by nearly 90%, and the brand name has basically become stinky.

But the old Bill Miller still refuses to accept his old age. He has reviewed it many times in private. His biggest mistake during the financial crisis was not to switch camps in time, from long to short. This was the main culprit that caused his huge losses.

Hence, he wanted to try a different identity during the last period of his career.

After some instigation from Einhorn, the old man pinned his hope of saving his fund on short selling Tesla.

　　With a burst of ringing, the phone was connected.

Bill Miller, who seemed to have guessed what Einhorn wanted to say, spoke first.

 “Bill, don’t say anything. It’s over, it’s over.”

 “What are you talking about? It’s over? We still have a lot of opportunities.”

"Bill, don't worry, listen to me first. I am different from you. You are still young and have infinite possibilities. I am old and my time is over."

"Mr. Miller, we can still add more funds. Darren Xia has played all the cards he can, as long as we withstand the pressure..."

"Leggmanson Value Fund has no extra funds. We are different from you. Your customers are all long-term large customers, but we are a mutual fund. Our customers cannot bear the slightest disturbance. I want to give mine Leave some seeds for your successor..."

 …

After some pulling and pulling, Einhorn hung up the phone angrily, cursed an "eggless old thing," and then quickly dialed the phone number of another big short, the prototype character of "The Big Short", Michael Burry. Telephone.

In Einhorn's opinion, this person, like himself, dared to make huge profits in the financial crisis, shouldn't be so timid, right?

 The results available still disappointed him.

 “David, I have informed you to close the position, we lost.”

"What, you have already informed us to close the position? Didn't we agree to advance and retreat together?"

 “Sorry, I admit that I made a mistake.”

 “Michael, listen to me…”

 Before Einhorn could finish speaking, Michael Burry hung up the phone.

"damn it…"

 After Einhorn cursed a few times, he suddenly came to his senses and quickly checked the market.

 He discovered that Tesla’s stock price was soaring, and immediately realized that this was the result of his teammates liquidating their positions in large numbers.

Einhorn, who realized that he had been sold, no longer had the calmness he had before, and immediately gave instructions to his subordinates to close their positions.

 He wanted to struggle a few more times, but he underestimated the shamelessness of his pig teammates.

If he continues to struggle, he may even lose his underwear.

 At the same time, he also realized a more serious problem.

 Michael Burry seemed like a human being, and he was told that he had run away.

And the old guy Bill Miller has been talking to himself on the phone. After such a period of time, the old guy may close a lot of positions.

This is the real situation on Wall Street. Even if you are close teammates one moment, you may become someone else's menu the next moment.

 United, that’s when money is made.

　　When you lose money, who wouldn’t turn into Rufeng and hate your parents for losing two legs?

 (End of this chapter)