My Age of Investment

On July 20, Tesla released its second quarter financial report for fiscal year 2011.

The report shows that Tesla’s second-quarter revenue was US$112 million, an increase of 65% compared with US$68 million in the same period last year, but an increase of only 5% from US$105 million in the first quarter.

Net profit is even more disappointing. The loss in the same period last year was US$37 million, which further expanded to US$81 million this year.

Facing the financial report handed over by Tesla, there are gradually more voices of criticism in the market.

In the subsequent conference call, Tesla CEO Straubel and several other executives answered questions raised by investors and analysts one by one.

The first is the issue of weak revenue growth. Straubel’s answer is that it is affected by the slow increase in production capacity.

Although it holds a large number of new car orders, Tesla currently only owns a small factory in Fremont and is unable to convert commercial orders into revenue and profits in a timely and effective manner.

The investment bank analyst was obviously not satisfied with this answer and continued to ask about profits.

Chief Financial Officer Deepak Ahuja, who had just transferred from Ford, cleverly used words to resolve the questioning.

It has to be said that Asan Ge, who can be a senior executive in Silicon Valley, is all very eloquent, and in a few words he can turn analysts' attention to production capacity.

In Deepak's words, in order to shorten the car delivery cycle and deliver "gifts" to dear customers before Christmas this year, Tesla deliberately purchased a large amount of car manufacturing equipment in the first half of this year. In one fell swoop, the automobile manufacturing capacity of the Fremont plant was increased from 500 vehicles per month to 1,000 vehicles per month, achieving the gratifying effect of doubling production capacity.

As for the orders placed just this year?

Sorry, I have to wait until next year to pick up the new car.

The momentum of Brother Asan's speech immediately shocked this group of aggressive analysts, and also made many people participating in the meeting feel that Tesla is extraordinary.

What happened to losing some money? My order is already scheduled for next year!

Last year's order was delivered this year! This year's orders will be delivered next year!

That’s why you don’t have to worry about sales!

Then everyone focused on production capacity.

If you produce 1,000 vehicles a month, you can only produce 12,000 vehicles a year.

How can this production capacity be enough? Not only is it impossible to make Tesla's financial report a good one, but if the stock price rises too high, it can also easily cause customers to become impatient and eventually lose customers.

In response to this question, Tesla's answer is that it is seeking a major solution.

Once this plan is implemented, huge automobile manufacturing capacity will be released in the shortest possible time, and Tesla’s true stock price will be reflected one by one in the future.

After hearing this news, analysts and investors were very happy and became more interested in Tesla's next big move.

The following meeting was carried out in this kind of conversation atmosphere where all parties felt that it was a pleasant conversation.

When the meeting was coming to an end, an investor suddenly asked: "Nikola Motors has submitted a prospectus to the New York Stock Exchange a few days ago and is expected to be listed before the end of the year. What measures will Tesla take to respond to this?" ?"

Upon hearing these words, Straubel's face suddenly darkened.

In fact, Tesla doesn't have a good way to suppress Musk, an invincible little power. It can't arrange a car accident for Mr. Ma or use other means to make him evaporate, right?

Not to mention using unconventional competition methods, even conventional methods can only be used within a certain range.

Mr. Ma’s current political and business relations are many times better than Tesla’s. NASA has recently given SpaceX a commercial transportation service for astronauts to and from the International Space Station. I believe that it won’t be long before we can see the Dragon spacecraft. The space station delivers goods to people.

Thanks to the rise of SpaceX, Musk has become a well-known technology hero in the United States.

The unlucky guy whose child died in infancy, his wife divorced him, and his company was on the verge of bankruptcy a few years ago has completely turned around.

Venture capital funds and banking institutions that were initially unwilling to invest in him are now rushing to invest and lend him money.

Once the shackles of capital were broken, Nikola's development suddenly embarked on the fast track, and now the gap between it and Tesla is constantly narrowing.

No, the company is about to go public, just over a year behind Tesla.

Investors mentioned the issue of competition with Nikola, and Straubel could not avoid it.

He answered generously: "Nikola is not our competitor at present, but a fellow traveler with common technological beliefs. We work with them to promote electric vehicles and make the market bigger. Even if there is competition, it is still there. future."

…………

The conference call ended successfully, but the ups and downs in the stock market have just begun.

Tesla's stock price fell sharply as heavy selling emerged.

$29!

$28!

$27!

…

With the stock price about to fall below $20, Draper and several other shareholders finally took action, buying a large amount of shares that were being sold off in the market.

One party is short the stock and the other is long the stock.

Shorts and bulls are fighting over Tesla stock.

Xia Jingxing asked Liu Hai to stay still for the time being and watch the show slowly with a tea cup in hand.

…………

Located in the Greenlight Capital office on Wall Street, David Einhorn is staring at a Bloomberg terminal in front of him.

The stock price figures on the screen were beating wildly, and Einhorn, the future hedge fund tycoon and current hedge fund tycoon, was also a little uneasy.

He saw Xia Jingxing's tweet and knew that the other party was going to send him a box of shorts.

He originally didn't take Xia Jingxing's intimidation and humiliation too seriously, but today's fierce game in the stock market still cast a shadow on his heart.

You must know that what he is facing is not an unknown person, but a visionary capital with great achievements.

If nothing else, the opponent's size of hundreds of billions of dollars alone is enough to scare away ordinary soldiers and generals.

But Einhorn did not consider himself to be a little shrimp. As a well-known hedge fund manager who once brought down Bear Stearns and Lehman, he had determined to be a financial tycoon.

Although Greenlight Capital’s current fund management scale is not large, only a few billion US dollars, which is very different from the huge size of Vision Capital.

But finance is not a game that can only be played well with a lot of money and a large scale.

The reason why he chose Tesla to start this time was a decision he made after observing it for a long time.

First of all, this company is well-known enough and is an Internet celebrity company. Killing it will make Greenlight Capital's reputation even higher, which will be beneficial to subsequent fund-raising and investment work.

Secondly, it has something to do with Xia Jingxing.

Who made Xia Jingxing despise him? I want to keep him as a dog!

Even when Greenlight Capital was still very weak a few years ago, he considered himself equal to Vision Capital, let alone today when it is becoming more and more mature.

After looking at the market for a while, Einhorn gradually felt confident. Then he took out his mobile phone, dialed a number, and said, "As you expected, the other side did take action."

"I've said it before, patience is definitely not Darren Xia's style! Don't worry, he definitely has a backup plan!"

"Stop talking so much, do we want to add more details? It's not exciting enough now!"

"Let's talk when we meet! Remember to call everyone."

"Okay, I made the decision this time under great pressure. Don't rush forward alone while you are retreating."

"Don't worry, you can't wear shorts."