2003: Starting with Foreign Trade

Chapter 737 The Second Largest Shareholder

Factory Director Ma, who used to always boast to others, has finally seen something new today.

He usually boasts to others, describing Tesla's bright future and seeking more investment.

Today, someone actually described the future of the entire electric vehicle industry and the prospects of the Chinese market to him, which made his head spin.

By now, all three of them had drunk quite a bit and were somewhat tipsy, especially Tan Jincheng, whose drinking wasn't very good, but he was really getting carried away with his boasting.

"We car enthusiasts can't compare to those who play with mobile phones. The mobile phone market is already mature, but there's hardly a market for electric vehicles yet. Cultivating the market is the most important thing right now; sigh, we still have to wait a few more years."

"Pure electric vehicles alone are definitely not enough. Without solving range anxiety, plug-in hybrids and range-extended electric vehicles will coexist in the market."

Especially the range-extended electric vehicle (REEV). When it was first introduced, it was heavily criticized by the industry, but after it sold out, many manufacturers realized how good it was.

However, coupe models like the Tesla Model S and Model Y are primarily pure electric, while hybrid models are mainly used in SUVs. The ES6, which debuted in the US, is a hybrid, but the coupe model is pure electric.

Pure electric vehicles have their advantages, and hybrid vehicles have theirs. It all depends on the market and consumer choices. Arguing about which is better is meaningless.

Tesla's all-electric series sells very well, and its hybrid series also sells very well. What companies need to do is sell cars. Arguing with competitors about which is better is just ridiculous.

Tan Jincheng wasn't worried that his boasting would affect Factory Director Ma's thinking. Putting aside whether a strong person like Factory Director Ma, who had his own plans, would be influenced, even if he was, it was none of his business. He was just boasting.

Before meeting Tan Jincheng, Factory Director Ma was already quite curious about this young man. This amazing young man from the East had become the actual controller of two listed companies at the age of 23.

Judging by this achievement alone, it is far superior to his financial freedom after selling PayPal at the age of 28.

Now the two are working together in the electric vehicle industry. In terms of company size, Tesla is not as good as Wei Lai, and in terms of net worth, he is not as good as this young man from the East. Tan Jincheng casually offered a price of 2 million US dollars, but he did not have such courage.

Because he genuinely doesn't have $2 million. If we ask him to produce $2 million now, he'd have to pledge his shares as collateral.

Yes, in terms of strength, Tan Jincheng was stronger than Musk at this time. His net worth was probably five or six times that of Musk, and his company was much stronger than Tesla. Musk had extensive connections in the United States, and Tan Jincheng's connections in China were not bad either.

Factory Manager Ma had the opportunity to meet another horse and get a loan. Tan Jincheng was no less fortunate; he had even been received by two generations of bosses.

Tesla is still facing the risk of bankruptcy. They currently have fewer than 1000 employees. Even if they were to go bankrupt, it would only make a splash in the news. However, as long as Jincheng doesn't make any rash decisions, there is no possibility of them going bankrupt.

Furthermore, if the entire company of 3.3 employees were to go bankrupt, the impact would be far greater than if Tesla itself were to collapse.

"Come on, Tan, let's go to a bar. I'll show you the nightlife of Texas."

Musk was simply overjoyed today. He had been under considerable pressure for the past two years, and the difficulty of building cars and rockets was on a completely different level compared to when he was developing internet payment software.

The costs of sports cars kept spiraling out of control, his relationship with management and the founders broke down, and the subprime mortgage crisis brought the company to the brink of bankruptcy. Finding new investment loans and going public on the IPO were all pressing on his shoulders.

The years 2008 and 2009 were probably the two most difficult years of Musk's life. Although Tesla's cash flow improved in 2010, the pressure was still immense.

He hadn't laughed so freely in a long time. Tan Jincheng's arrogance, his confidence in the future, and his sunny face gave him a long-lost passion.

He was quite the playboy in his youth, and he still is now.

"Haha, Tan's child has just been born, you mustn't spoil him."

Musk is a notorious playboy who has tried all sorts of things, including things that are legal in some parts of the country but not in China. So I couldn't help but point it out.

The words were addressed to Musk, but the real purpose was to remind Tan Jincheng.

With such a good partner, the best days are yet to come. He doesn't want Tan Jincheng to get into trouble now. Some things may seem commonplace abroad, but if the news gets back to China, it will be a big deal.

"Don't worry, I know what I'm doing. I'll just have a few drinks and see what it's like."

While Factory Director Ma was on the phone making arrangements, Tan Jincheng put his arm around Shen Nanpeng's shoulder and spoke softly. This time he used Mandarin, which only the two of them could understand.

When you are strong enough and still useful, you will be surrounded by good people.

Tan Jincheng was not surprised at all that Shen Nanpeng was able to offer a reminder. It's no exaggeration to say that now he dares to act recklessly, but there are a lot of people who are afraid of him acting recklessly. As long as he does anything a little extreme, someone will cover for him.

"Good to know. That old rascal knows how to play the game. There are some things that can't be touched in China, and you absolutely can't touch them either."

Shen Nanpeng breathed a sigh of relief when he saw that Tan Jincheng was still conscious. He was really worried that the young man was too curious and might get involved in something. Since it was a public event, it would be very troublesome to deal with if they were secretly photographed.

"Okay, I'll have Brother Li and the others keep an eye on us for a bit, it'll be fine."

In the free and free America, every day, Tan Jincheng really didn't feel safe at all in this place, and neither did Shen Nanpeng. They could travel without assistants, but they would definitely bring security personnel.

Factory Director Ma is the same; he's arrogant and conceited, but he's also incredibly stingy in this area.

Just kidding, among celebrities in the US, Carmelo Anthony is probably the only one who dares to play the populist card.

"Tan, I've made an appointment with Daimler, a director on Tesla's board of directors. He has the authority to decide whether to transfer the shares to you. As for the specific transfer price, you can discuss it with him. Whether it's the issue price or the current price is up to you."

"As for the matter of introducing our sports cars to your country, I'll discuss it with you in detail after the board meeting tomorrow."

"That's great, I can make new friends."

Damn, I knew this guy wasn't that simple. He said he'd take him to see the world, but all he was thinking about was business. He's already contacted Daimler's board of directors so quickly.

But that's fine too. The sooner it's resolved, the sooner he can do other things. Besides coming to Texas, he's also going to Hawaii on this trip. Chris, the designer Thomas introduced last time, is currently vacationing in Hawaii.

After a period of communication, the other party has agreed to meet with Tan Jincheng, on the condition that Tan Jincheng is willing to fly to Hawaii.

I definitely have to go.

At night, Austin, like other developed American cities, has its reinforced concrete buildings appearing surreal and dazzling under the lights.

Just like in big cities, there were quite a few homeless people outside the bar, and many drunkards were staggering around on the street.

People occasionally glanced at Musk and his group as they made their second round of the round, but seeing the burly men with bulging waists on the outside, they dared not make any moves.

“Going out at night is still a bit dangerous. If you plan to stay here for a few more days, Tan, it would be best to hire a few more security personnel. Your security is not enough.”

Factory Director Ma pointed to the homeless man on the street and then made a gesture towards Tan Jincheng.

"Of course, it's fine if you don't go out at night. Just be more careful next time you come over."

"Thank you, Elon. Have we discussed this with our team members?"

Tan Jincheng smiled. He understood the gesture. If Lai Yiu-fai wanted to hold that thing here for a short period of time, it wasn't impossible, but it would be quite troublesome. He would have to apply to the embassy and then declare it.

For short trips, Tan Jincheng usually doesn't apply for this, as it's too much trouble.

Because it was uncertain how many days he would stay and that he would be coming to Dezhou, Tan Jincheng applied for a job. After arriving in Dezhou, he was assigned to Li Yaohui.

This guy was incredibly excited; he hadn't touched one of these things in years.

However, this was the first time Tan Jincheng had ever touched this thing. How should I put it? He had a feeling he couldn't quite describe. No wonder Li Yaohui was excited. This thing is naturally attractive to men, just like cars and other things.

"Don't worry, their safety is guaranteed. But they don't go out at night, haha, I was thinking of treating them to drinks."

"Haha, it's just the difference between Eastern and Western cultures. Maybe they're not that interested in this kind of nightlife. Elon, when you come to China, I'll show you around and let you experience our nightlife."

Actually, it was Yu Liguo who made the request. Because he used to work within the system, he had high requirements for going abroad. This time, he led the team to Dezhou, and Yu Liguo required team members to maintain the image of the company and the country.

It's understandable, after all, he just left the system and is still maintaining his previous professional habits, so there's nothing wrong with that.

"I will definitely go to China. I will need Tan to be my guide, and Shen as well."

"Hehe, I'm not as familiar with China as Tan is. If you want to experience Chinese customs, you'll have to ask Tan for advice."

The group arrived at the bar chatting and laughing. At that moment, a burly middle-aged man came over and waved to them.

"This is Herbert, my friend, and also Daimler's board member at Tesla. It's true that Daimler's investment has benefited him."

Daimler is arguably Tesla's savior; without that investment, Tesla probably wouldn't exist. However, the money wasn't easy to obtain. Back in September 2007, Musk flew to Stuttgart with a PowerPoint presentation, hoping to secure a supply of battery packs for the century-old automaker.

At that time, the Roadster was just a PowerPoint presentation; there wasn't a single finished car yet. The factory manager's trip to Stuttgart was simply to promote his battery packs. See? Foreigners actually started their research in the electric vehicle field quite early.

However, given the Germans' meticulousness, a PowerPoint presentation was clearly not enough to impress them. The turning point came in January 2008 when Daimler executives visited Silicon Valley and expressed their desire to see Tesla's technology in person.

However, they demanded that an electric version of the smart be built within six weeks.

Goodness, that's quite an unreasonable request. Smart wasn't even sold in the US in early 08.

However, our factory manager, Ma, was probably driven to desperation by the impending food shortage.

With a determined effort, they immediately sent someone with a large bag of cash to their good neighbor Mexico to buy a car, which they did overnight.

Without altering the interior, Tesla engineers removed the original engine and crammed the battery pack and motor into the Smart chassis.

They actually managed to make it; it's probably the fastest electric car in history.

The Germans were very satisfied with the technology demonstration, and the two sides signed Tesla's largest contract ever: 1000 battery packs, with a total order value of $4000 million, averaging $4 per battery pack.

This order saved Tesla, allowing them to survive until Daimler's second intervention, and the key person in this was Herbert.

In fact, Thomas Weber, Daimler's technical director at the beginning, did not think highly of Tesla's small factory. Without Herbert's second recommendation, there would have been no such huge order, let alone the subsequent investment.

With the backing of a top global automaker like Daimler, many things became easier. Toyota followed Daimler's lead and decided to invest in Tesla in 2009. Toyota's current shareholding is slightly lower than Tesla's, at 8.2%, making it the third largest shareholder.

Factory Manager Ma's first thought was to contact Toyota, but then he suddenly remembered that Toyota and Weilai Motors seemed to have some issues in the Chinese market.

"Herbert, let me introduce you. This is Tan, a magical young man from China. Don't underestimate him; he's worth more than both of us combined."

Foreigners are very direct when it comes to money.

"Hello, Herbert, it's a pleasure to meet you."

Damn, these foreigners are really tall. You have to look up at them. Herbert, with a full beard, was looking at Tan Jincheng with great interest.

Elon had already told him over the phone that this young man from the East wanted to acquire the Tesla shares held by Daimler, and he had also obtained Tan Jincheng's personal information immediately.

Born in 1985, this 26-year-old man from the East earned his first pot of gold in 2004 at the age of 19 by engaging in foreign trade.

In the following years, his assets expanded rapidly, and in 2009 he ranked 30th on the China Rich List with a net worth of 118.1 billion RMB, equivalent to about 17.3 billion USD at the time.

Herbert is a member of the Kohler family, and his sources of information are far superior to Musk's. Tan Jincheng's net worth on the list is significantly lower. According to the information he collected, Tan Jincheng's net worth in 2009 was at least $20 billion.

Going from nothing to a net worth of $20 billion in six years is a miracle in any country. If this happened in the United States, it would be widely publicized and the person would be hailed as a new generation of wealth leader.

According to available information, Tan Jincheng's assets can be roughly divided into four categories. The first category is Flash Group, whose main business is import and export trade and light industrial consumer goods. The second category is the Internet sector business, mainly engaged in e-commerce and social games, with several of its mini-games ranking on the iOS charts.

The third category is Weilai New Energy Group, which was established not long ago. Its main business is batteries and complete vehicles, similar to BYD in China.

The fourth category is also the most low-profile, consisting of investment companies led by ByteDance. There is not much publicly available information about this group, but as a member of the Kohler family, Herbert could guess with his eyes closed that this group controls a large amount of cash flow for Tan Jincheng personally and his company.

There's a Chinese proverb that says, "Make a fortune quietly," meaning the most low-key people are often the most profitable.

Without a doubt, the funds he uses to acquire the company's shares this time must also come from the investment company.

Haha, a $2 million offer is quite generous. It's already a 20% premium based on the current price. Daimler's $5000 million investment has yielded a fourfold return in just over a year, which is a pretty good investment for the company.

Daimler's current market value is 75 times that of Tesla. As a century-old automaker, they wouldn't covet a small car factory; their previous investments were just casual gestures.

In another timeline, Daimler also sold its Tesla shares for $10 billion in 2014.

It is clear that they have always treated Tesla as just a battery supplier, even after the Model S was launched in 2014 and created a whirlwind of electric vehicles in the market.

"Hey Tan, I heard you're interested in acquiring our Tesla shares for $2 million?"

Tan Jincheng was taken aback and couldn't help but glance at Musk, only to see him spreading his hands with an innocent expression.

Good grief, didn't I say I'd buy 10% of the shares for 2 million US dollars? You only have 8.57% and you still want 2 million US dollars? How did this old man spread the word? But we can't lose face at this point.

“Of course, if you can make a decision now, Herbert, I can have the payment transferred right now.”

Herbert paused for a moment, then burst into laughter: "Let's not talk about that tonight, let's drink, my dear friend, come and experience the night in Austin."

Of course, he couldn't make a decision on the spot; he hadn't reported to headquarters yet.

Musk and Shen Nanpeng, who were standing nearby, also burst into laughter. At this moment, Director Ma was actually a little envious of Tan Jincheng's autocratic power. He could sense that if Herbert had agreed, Tan would have really made the payment on the spot.

How convenient! He can make such a huge decision as $2 million without holding a board meeting.

Shen Nanpeng's laughter contained an element of pride. He was present when Tan Jincheng proposed to acquire Tesla shares for $2 million, and at that time he said it was 10%.

I don't know how these two foreigners came to this agreement, but instead of the original $200 million, their 10% stake has somehow become the current 8.57% stake.

Haha, you didn't expect that, did you? We got carried by our young people.

The bar was noisy, and for the rest of the time, the group didn't talk about work anymore. Musk and Herbert, the two good buddies, asked Tan Jincheng and Shen Nanpeng about some Chinese culture.

Tan Jincheng didn't bring up the shares again. Instead, they talked about American culture. The best topic to start with was sports. Tan Jincheng didn't know anything about American football, but he did know about the NBA.

Texas has three NBA teams, with the Rockets being the most well-known in China. Yao Ming, the owner of the Rockets, had a very impressive performance in the 2009 playoffs, which is also considered by Chinese fans to be the most regrettable playoff season.

"There's a joke among Chinese fans: 'Eat, sleep, play Warcraft,' hahaha."

"Oh, by the way, this 'Warcraft' is a double entendre; it doesn't just refer to the game."

In China, it would be somewhat impolite to talk about someone's family affairs like that, but it's fine here in America. Besides, Tan Jincheng had a few drinks, so he didn't care even more.

They chatted about all sorts of things. Apart from alcohol, Tan Jincheng didn't touch much else. When it came time for the performance, he was truly amazed.

"Does this old guy usually play this elaborate game?"

Factory Director Ma held a US dollar knife in his hand and threw it at the pole dancer, swaying to the rhythm of the music. Herbert, standing next to him, was in no better shape.

"Haha, this is nothing. It's just that time is limited, otherwise you would have seen more and more exciting things."

Shen Nanpeng had lived here for a long time and was already used to it. He explained some of the ways of life in Wall Street's high society to Tan Jincheng with a smile, leaving Tan Jincheng dumbfounded.

"It really is a paradise for the rich. Living in this kind of environment and being exposed to this kind of culture for a long time, it's hard not to become a playboy."

"Haha, it's pretty much the same in China, it's just that you're more low-key and don't go out much. I'll take you to see the world when I have the chance."

"Never mind, I'm afraid of getting sick."

"Screw you."

After a night of revelry, Tan Jincheng refused Director Ma's offer to find him two beautiful foreign women and was escorted back to the hotel by Li Yaohui. He slept until ten o'clock the next day.

Meanwhile, the energetic Factory Director Ma was holding a board meeting to discuss cooperation with Weilai Automobile.

Herbert was also present at the meeting. Before the meeting, he had already reported to headquarters about Tan Jincheng's intention to acquire the company's Tesla shares.

The Toyota representatives were also surprised to hear for the first time that Tan Jincheng, president of Weilai Motors, was interested in acquiring Tesla's shares.

This Chinese automaker caused them considerable trouble during the recall incident, although these issues had little to do with their North American business.

However, the overall sales of the Yuechi A1 have steadily surpassed those of the RAV4, which has left them somewhat frustrated.

At this moment, Tan Jincheng, who had just woken up in the hotel, shook his still dizzy head and looked around at his surroundings, and couldn't help but feel relieved.

Picking up the phone on the bed, Tan Jincheng sent a message to Cheng Linfeng through Dingding: "Use the ByteDance account to buy 93 shares of Tesla stock in batches."

(End of this chapter)