American Life

Chapter 206 Lu Xing, the Feeling of Being a God
"This is not surprising." Charlie looked at the "Silicon Valley Iron Man" opposite.

In fact, this new energy vehicle company was in a relatively difficult situation from 08 to 18. During this period, it experienced several bankruptcy crises. It was not until 18 that the situation was significantly reversed.

"However, if I remember correctly, Tesla just completed its fourth round of financing last May, raising US$4500 million, which was only half a year ago." Charlie continued.

Coupled with the model S just released at the end of last year and the roadster, an electric sports car released in 06 and expected to be put into mass production this year, Tesla should be relatively stable this year.

"Electric cars are no cheaper than oil-burning cars." Lao Ma shook his head helplessly.

"To be honest, electric vehicles are not a new technology. The roadster initially adopted the tzero prototype solution. We imported the chassis from Lotus in the UK and assembled AC Propulsion's electric transmission components in California. The results were hugely disappointing."

"AC Propulsion?" Charlie heard the name for the first time.

“More than ten years ago, Martin Eberhard and Mark Tarpenning both test-drove AC Propulsion’s electric prototype tzero. They tried to persuade each other to build a mass-produced model, but AC Propulsion refused, so the two decided to make their own That's how Tesla came to be. As for me, I entered the company as an angel investor, and then the two founders left the company one after another. Thanks to everyone's love, now the company is fully managed by me." Musk said lightly. Said.

"Speaking of which, I have to thank you for kicking Hefner away. This incident inspired me to never be soft when I should be decisive. In May last year, I invested all my net worth. Last year, I raised more than Most of the first is my personal funds." Musk explained.

"Oh, it seems that you have achieved your purpose."

"Yes, but the results are not ideal. AC Propulsion's battery technology relies on the defense. The performance, reliability, weight and cost cannot meet the requirements. I can only hire engineers from scratch to develop a battery system based on lithium-ion batteries."

"There are also motor problems. AC Propulsion's motor is noisy, lacks power, and often has problems. We were forced to independently develop a new three-phase four-pole AC induction motor."

"Even including the transmission, we planned to use a two-speed transmission at the beginning. The acceleration of 60-120 is similar to that of 0-60. From the results, this technical route is wrong, and the transmission cannot bear huge torque at all, so We had to compromise and simplify the power transmission system.”

"Three important components of electric vehicles need to be redone. The budget is seriously overrun, the construction period is seriously delayed, and the project is almost stopped. In fact, the first mass-produced car that rolled off the assembly line in February is not perfect, and is even full of defects. For example, due to limitations of charging technology, it takes at least 2 hours to fully charge the roadster."

"Maybe you should be lucky, at least Tesla now has its own technology."

"Electric cars can never be manufactured with just the technology. The upstream and downstream parts of the automotive industry design tens of thousands of parts. Coordination between hundreds of suppliers leads to inefficiency. The assembly of imported chassis brings high costs. The roadster is doomed to be a failure. It’s impossible for the company to make money with its products.”

"But you still launched it on the market, and you spoke at the roll-off ceremony of the first car half a month ago, saying, 'This is an incredible honor.'" Charlie said.

"Yes, convincing others that we can build an electric car is far more important than building an electric car itself, a hundred times more important." Musk unswervingly elaborated on his business philosophy.

"We need more financing, mortgages, debt, everything, otherwise Tesla won't survive next year."

"But it is not an expedient solution to continue like this." Charlie pondered.

"Yes, we have learned from our experience and lessons and will apply them to the new model S. The new model has both performance and comfort, and most importantly, the cost is low enough."

"Are you sure the new car can achieve the advantages you mentioned?" Charlie asked again.

"Well, at least Tesla's technical team is improving every day." Musk said with some embarrassment.

"Compared to short-term financing, I have a once-and-for-all solution." Charlie tried to prescribe the right medicine.

"Let's talk." Musk was all ears.

"Tesla's shortcomings lie in the traditional manufacturing field. Maybe we can cooperate with traditional car companies."

"That would take away Tesla's uniqueness, and it would be a huge blow to the brand itself. Customers who favor us will definitely lose interest. Unless it is a complete acquisition of a traditional car company and the entire engineering team, Tesla has no money right now. .”

"If I'm willing to invest in the acquisition and then cross-shareholding with Tesla, I can solve this problem."

Musk chuckled: "What on earth do you want to do?"

"It's just cooperation. I know you want to control Tesla with one hand, but you also urgently need the help of partners now, right? With experienced suppliers and experienced automobile manufacturing factories, the pain points of delivery will be completely eliminated. Can you Save yourself a lot of trouble and focus on researching new technologies."

"In addition, we can also strengthen research and development with other companies. I know that there is a company in the Far East that makes high-quality batteries for mobile phone cameras and is also involved in automobile manufacturing..."

Musk burst out laughing: "Forget it, that company is like a clown. Have you seen the cars they make? Tesla wants to make high-quality products full of science fiction, not for people in the third world." A popular means of transportation.”

"And I'm negotiating a low-interest loan with the Department of Energy, and they won't be happy to hear that."

He rejected the idea.

"Let's talk about merging with traditional car companies. Which car company are you planning to acquire?"

"Of course it's a Ferrari." Charlie said seriously.

"Haha, I think Porsche is more suitable." Musk smiled knowingly.

Automobile brands have a pivotal position in every country, involving local jobs, upstream and downstream industries, and a large amount of capital. In other words, acquisitions are very complex and difficult, and the prerequisite is that the other party is willing to sell.

In this way, there are actually not many objects to choose from, it can even be said that there is only one.

"Last year, you might have had a chance to buy Aston Martin or Chrysler, but at this moment, there are only four choices, Hummer, Opel, Land Rover, and Volvo." Musk said, clasping his fingers.

The above-mentioned brands all come from the General Motors Group. Since last year, various internal problems have erupted collectively at General Motors, which is eager to sell these second-tier brands on the market in order to survive.

"Of course it's Opel." Charlie said without thinking.

Last year, General Motors sold 80% of its Chrysler shares to Cerbers Capital Management for a total transaction value of US$74.

Charlie didn't have that much money to spend. In comparison, Opel was a very affordable choice, but even so, the cost of completing the entire acquisition was hundreds of millions of dollars.

"Very good, you have determined your goal, you can start now."

"So, how do I contact GM?"

"Don't you know such a simple question? I thought you had this plan a long time ago." Musk complained.

"Actually, I came up with this idea after hearing about your experience. As a member of the automobile industry, this little thing shouldn't be difficult for you, right?" Charlie asked.

"I...I don't have frequent contact with traditional car companies. They think Tesla can only be regarded as consumer electronics." Musk opened his mouth and said with some embarrassment.

"So, we have a more serious problem than acquiring a car brand and finding a way to participate in the bidding." Charlie couldn't laugh or cry.

"Since we don't know much about traditional car companies, maybe we should make preparations first. At least we should see what models Opel currently has." Musk said.

"The Detroit Auto Show, one of the three major auto shows in North America, is about to be held. It is a good window. GM's headquarters happens to be in Detroit." Charlie suggested.

"Are you sure you really want to acquire it?" Musk started to back off.

Look at it... Charlie doesn't know anything about the car industry, does he?He suddenly felt like he was on a thief ship.

"You can cross the river by feeling the stones, right? Just like what you are doing now, we are all trying to seize the opportunities for change in the industry." Charlie patted Musk on the shoulder and said in a persuasive way.

No one can change the wave of electric vehicle transformation.Even if there are no conditions, you have to participate even if you create conditions.

"Starting from scratch...you remind me of a person, Richard Branson, as the head of a huge group, he is as adventurous as you, and often makes decisions that slap his head." Musk Said with a smile.

As the negotiation came to an end, Charlie asked Musk to stay in Chicago tonight and return to California tomorrow.

"So, am I lucky enough to be able to enter your gorgeous mansion tonight? By the way, can I get to know your spouse?" Musk muttered subconsciously, recalling some reports in the news.

"Speaking of which, the news related to you has been greatly reduced in recent months. Compared to before, you are almost invisible." He asked again.

"In the beginning, I did need to go out in person to gain attention, but as my subordinates matured, I lost the need to show my face." Charlie explained.

It would be more appropriate to leave entertainment news to the likes of Taylor Swift, Paris Hilton, Megan Fox and others.

"Although you are not the protagonist in the news, your influence is everywhere." Musk shook his head.

The two walked out of the office. Except for the necessary lighting, the entire top-floor office was plunged into darkness, the workstations were already empty, and the entire building was deserted.

And the only one waiting for Charlie is Keira.

"Charlie is young, handsome, rich, and most importantly, has grand ideals. You are right to be with him. Maybe he will become the richest man in the world in the future. Your choice is very right." When the three of them walked into the elevator together, Musk also comforted Kayla.

In terms of personal life, Musk and Charlie can only be said to be evenly matched.

So in his opinion, what happens between Charlie and his secretary is normal, and what doesn't happen is special.

And that kind of envy was real. He turned to Charlie and said: "When I saw you, I wondered for a moment whether I had chosen the wrong industry. I think the entertainment industry is obviously more suitable for me."

"I think you should stay in the technology industry. It's more suitable for storytelling, right? Landing on Mars, brain-computer interfaces, ultra-high-speed underground tunnels..."

"There are many ways to market. We have chosen completely different ways, but we have the same goal." Musk said with a smile.

Whether it is electric vehicles, commercial aerospace, or brain-computer interfaces, these are all cutting-edge technologies that already exist.

What Musk has done is to put these technological frontiers in front of everyone and describe grand business prospects. In essence, he is still a businessman.

When he returned to the mansion with Charlie, he found that these couples were waiting for Charlie to come back and have dinner together. Musk was quite emotional and didn't know what he was thinking.

During the dinner, Charlie and Musk chatted about their time at the University of Pennsylvania. As a graduate of the Wharton School of Business, Ivanie had many topics in common with the two.

Musk is willing to accept Charlie's proposal mostly because the two are school friends. If it were anyone else, he would not agree so easily.

After dinner, Charlie and Musk went into the underground wine room to taste wine.

"To be honest, I am almost becoming your believer. You have helped me find a way to balance." Musk seemed to have made up his mind.

"However, you have to work hard. The world's population is shrinking sharply, and you should set an example." Musk said with a smile. He also said the same when asked by the media many years later.

Perhaps he believes that he is doing his part to reduce the global population.

"In addition, in the field of investment, I actually recommend that you learn about virtual currency. This is a very good investment project. The expectations of the public are unknown, which gives us a lot of room for manipulation. In other words, it is very easy to make money."

"For example, you first anonymously hoard a certain virtual currency, and then publicly announce that you can use the virtual currency to purchase your derivative products, such as nylon stockings, perfume, etc., and then take the opportunity to sell the virtual currency in the market. This is completely legal."

This method of operation is exactly the same as when he cut leeks a few years later.

Charlie shook his head: "I am not short of money now, and this will affect my reputation."

Musk felt incomprehensible and muttered:
"This has nothing to do with reputation, and it has nothing to do with whether funds are in short supply. It's just an attempt, a way to manipulate the market. Watching those speculators fall into madness and madness is a pleasure in itself, the pleasure of being a god."

At the end of the sentence, he laughed happily, and it was obvious that he was a little drunk.

"It's time for you to go back to your room and rest."

Charlie helped him up and asked the servant to take him back to the room.

Then they came to the small theater on the second floor, where they were collectively watching a European love movie that seemed a bit boring to Charlie. Charlie was sitting in the middle of the crowd.

"I can see that you two are getting along quite well," Faith said.

What he had just said came to Charlie's mind: "Just a business partner. Speaking of which, I'm going to the Detroit Auto Show in a few days."

"Are you looking at cars or car models?" Ivanie asked with a smile.

"Look, in addition to cars, many artists under Venus have signed contracts to participate this time." Charlie recalled the three South American girls in Los Angeles at the moment. They had made it clear that they would participate in the Detroit Auto Show.

(End of this chapter)