2003: Starting with Foreign Trade

Chapter 738 Each with their own agenda (Seeking monthly votes!)
P.S.: Double monthly passes! If you have any, please help me out, thank you!

93 shares, accounting for 1% of the total share capital. If we can acquire Daimler's shares, then we will hold 9.57% of the shares, which is more than enough.

The second largest shareholder is absolutely secure.

However, from a purely stock investment perspective, Tesla before 2018 was not a good investment target; Jack Ma was too aggressive in his approach.
Before the launch of the Tesla Model 3 and its expansion into the European and Chinese markets, Tesla had never escaped the brink of bankruptcy and was always on the verge of collapse.

Without even owning a single vehicle, the company's cash was completely depleted; only Director Ma would do something like that.

Before 2013, Tesla's stock price remained relatively stable. In another timeline, it's understandable that Daimler sold its shares in 2014, after the launch of the Model S.

The main reason is that the North American market is too small; Tesla would consider it a great achievement to sell a few thousand vehicles in a quarter.

In addition, compared with electricity prices in China, electricity prices abroad are not as cheap. Coupled with the same range anxiety, pure electric vehicles seem to have low cost performance.

While Tesla, which has always focused on pure electric vehicles, is recognized in the industry for its technology, it receives mixed reviews in the capital market.

Capital votes with its feet. If it's optimistic about you, it won't mention bubbles or price-to-earnings ratios; the price will just keep rising. Tesla before 14 didn't really have any upward movement.

If a company only has one unsellable sports car, and loses money on every one it sells, who would dare to buy its stock? Apple's stock surge only occurred after several products had sold exceptionally well.

Furthermore, Musk's radical approach was not accepted by Wall Street in the early stages and even later.

However, despite his arrogance and radicalism, this guy is also quite emotionally intelligent and knows how to be flexible and adaptable.

This is true of Daimler; they were willing to accept the requirement of producing an electric car in six weeks, and they also signed a performance-based agreement for the Shanghai Gigafactory.

He had to be ruthless with himself to bring his two saviors to his aid.

He's ruthless to others, so few people can share the wealth with him when starting a business together. He's also ruthless to himself, always willing to take drastic measures in life-or-death situations. It's hard for someone like that not to succeed.

As the general manager and vice president of ByteDance's securities business unit, Cheng Linfeng must have known about and closely followed the listing of Tesla, which also belongs to the group's new energy vehicle sector.

However, Tesla's performance was mediocre after its IPO, so Cheng Linfeng stopped paying attention to it.

"Okay, no problem, I'll have someone arrange it right away. Is there a time limit?"

Since the boss said so, Cheng Linfeng naturally complied. In his understanding, the boss's purchase of Tesla stock must be related to some kind of cooperation with Tesla, like Shuguang Auto integrating the industrial chain.

In short, it's probably not for making money by speculating on stock prices. If it were for speculating on stock prices, they wouldn't just buy such a small amount. People like Apple buy almost all their shares at once, which is purely for speculating on stock prices.

"Let's finish it in the next couple of days. Don't worry about the price. Just buy everything as quickly as possible. That way, I can talk to our factory manager, Mr. Ma."

93 shares isn't a lot, but it's close to 7% of the circulating shares. Buying them quickly certainly won't be cheap, but we were lucky, as global stock markets were performing so-so at this stage.

"Did nothing happen last night?"

In the suite's living room, Lai Yiu-fai was still the same as always. While the boss was sleeping, he would sit on the sofa and wait, watching TV and playing on his phone.

"Nothing happened. Mr. Ma and his team are all tall and strong, so no one dares to cause trouble."

"Haha, his last name is Musk, not Mr. Ma, but this guy really goes all out. The playboy description is really accurate."

"Hehe, last night was quite an eye-opener. Boss, are you going out? If so, I'll arrange a car now."

Tan Jincheng thought for a moment. Since Factory Director Ma and the others were having a board meeting today, he figured he wouldn't have a chance to see them. So he decided to call Yu Liguo and the others over for a meeting to see how the patent licensing negotiations were going.

They've been here for several days now.

"Let's not go out for now. Get some food and then have Mr. Yu and the others come over so we can have a meeting."

Officially, we're here to handle patent licensing, so we can't just ignore it completely. Even though this thing doesn't seem to have much use now, it will be very useful in a few years.

Another thing to note if you want to do automobile export trade is that foreign patent wars are the most disgusting; they'll mess with you no matter what, whether they're right or wrong.

We live in an era of global village, and relationships are generally good, making it easier for businesses to thrive. It's always beneficial to accumulate more capital now, improve your technological capabilities, and be better prepared to deal with any future setbacks.

Just look at Hebei; if you dare mess with me, I dare raise my prices.

"Okay, boss, wait a moment, I'll go arrange it right away."

It's better not to go out. He's a bit nervous about going abroad, and he always wants to touch new things he just got his hands on; it's so tempting.

It's fine inside the room, but I'm really afraid of being noticed outside.

About half an hour later, Yu Liguo and the others arrived. They were staying at the same hotel, which was not far from Tesla's headquarters, but they had already met with Tesla's engineers earlier that morning.

Yu Liguo and Hu Zhengnan will discuss the cooperation on patented technologies. As for the other engineers, they are brought along mainly to learn from them and see if they can learn any advanced automotive concepts.

China's automotive industry has made great progress, but there is still a big gap compared to the United States. If it weren't for the subprime mortgage crisis in 2008 that destroyed a lot of factories, the US manufacturing industry would still be quite prosperous.

"So, what do you think? Tesla's technology is pretty advanced, isn't it?"

Yu Liguo and the others entered the suite. Tan Jincheng smiled and asked them that before they came, he had asked them to find a way to learn some technology. There were some doubts in the company's internal meeting, and they thought that BYD should have the best electric vehicle technology.

"It's undeniable. They don't have many engineers, but their technical skills are truly exceptional. I don't know how they managed to do it."

Hu Zhengnan and Yu Liguo both remarked that it was quite amusing to think that Tesla only had two engineers when it initially designed its first model. They said that Tesla's CEO, Jack Ma, was quite arrogant.

The first Roadster was delivered over a five-year period, with 100 units delivered in 2008. The initial version was actually intended to be a simple modification of the existing model, with the cost planned to be kept at $4.

Hu Zhengnan nodded repeatedly: "After experiencing their Roadster a few times, the driving experience is indeed very good. It really can't compare to the BYD F3DM."

He has participated in the design of many popular domestic car models and has driven a great many cars.

"Haha, whether now or in the future, the automotive industry will always be inseparable from four words."

"That is, safety, convenience, experience, and affordability."

"Due to the economic environment, our consumers don't have much of a consumption awareness right now. For them, cars are more about status and having something to drive. But we can't think like that."

"The competition in the automotive industry in the future will definitely revolve around these four points, so we must hold ourselves to this standard from the very beginning."

Let alone new energy vehicles, even the popularity of gasoline vehicles in China is only so-so. In the era before the Internet, the speed of information dissemination was very slow, and there were not many cars in some small places.

Having a car at home is certainly prestigious, but other things aren't that important.

"You've probably heard about or seen it since you came here. From the very beginning, Masik has used high standards to manufacture electric vehicles, which is something we should learn from."

"That's right. In terms of intelligence alone, the Roadster is several levels above domestic electric vehicles. Our ES6 and Aion's S series can also take a look at this aspect."

Yu Liguo is in charge of the new energy vehicle business. He has been paying attention to the intelligent business of new energy vehicles for a long time, and he actually knows more about this business than Hu Zhengnan.

Hu Zhengnan, the future bigwig, is still a bit behind at this stage. In addition, his main focus is on industrial design, and primarily on gasoline-powered vehicles.

"Haha, those domestic car models don't even talk about intelligent features. BYD is seriously working on it. As for the other companies, let's not even talk about them. They're probably just after the subsidies."

The biggest advantage of electric vehicles is their intelligence, offering an experience that gasoline cars can't match. Many people who have driven electric vehicles say that they are very comfortable to drive.

However, domestically produced electric vehicles from 2008 to 2015 could hardly be considered to have intelligent driving capabilities.

In terms of company size and brand influence, what was Tesla in 2014? In terms of personal influence, Musk in 2014 was far less powerful than he would be more than a decade later.

The reason why Maodou S dares to sell for more than 70 yuan in China is because it has confidence in its own product. Compared with domestic new energy vehicles, it is a complete knockout in every aspect.

It seems that Maodou S sold quite a lot in China before the price reduction, which really allowed this guy to make a killing.

"If there are no major surprises, the Roadster should be introduced to the Chinese market through our agency. At that time, I hope your research institute can thoroughly understand its technology and strive to create the most advanced electric vehicle in China."

In the field of new energy vehicles, Weilai is taking a two-pronged approach, producing both sedans and SUVs, and simultaneously developing pure electric and hybrid vehicles.

In addition, there is a plan to convert the Yuechi A1 from gasoline to electric, but that will have to wait until after the update. Even if it is converted now, it will be for the subsidies.

For the time being, Tan Jincheng has no such idea. If he cheats too much, he will have to be held accountable in the future. If he cheats too little, it is meaningless. He will only lose a lot of money, gain a bad reputation, and waste his energy.

Unlike the emerging electric vehicle companies of the past that focused on pure electric vehicles, Weilai Auto is aimed at BYD, so both the ES6 and Aion S are divided into pure electric and hybrid versions.

The pure electric version is for future technological accumulation, and it can also legitimately receive subsidies. As for the hybrid model, it is mainly for sales volume and targeting ordinary consumers.

Hybrid vehicles can effectively address consumers' range anxiety, so let's sell as many as possible.

Both the ES6 and Aion S will be launched at this year's Guangzhou Auto Show. The initial pricing will be similar to their predecessors, with a 0-100 km/h acceleration time of 4.7 seconds. As for battery specifications, there will be two options: 260 km and 370 km.

Both models offer ranges comparable to the Tesla Model S, a feat achievable with current technology. As for pricing, Tan Jincheng has positioned the ES56 between 30 and 55 yuan, with an official guide price of 33.80 to 54.80 yuan for the base model before subsidies.

With similar specifications to the Edam S, it sells for 300,000 to 500,000 yuan and has a similar design. If the Edam S can sell so well, ours shouldn't be too bad, right?

As for the Aion S sedan, Tan Jincheng plans to follow the same taxi route as in his previous life, because both its price and driving range are much lower.

The first-generation Aion S also came in two versions with different driving ranges: 180 kilometers and 260 kilometers.

Based on a battery degradation rate of approximately 10%, in actual use, the vehicle's range can still reach 150 kilometers after a single full charge, which is sufficient for the daily operation of a taxi.

Most of the taxis on both sides operate within the city, and charging is convenient. A single trip of 150 kilometers is more than enough for one shift.

As for pricing, it will be much cheaper than the ES6, with a pre-subsidy price of 139,600 to 172,600 yuan. Based on the new energy vehicle policy, which provides a maximum subsidy of 60,000 yuan for pure electric vehicles, the lowest pre-subsidy price of the Aion S can be as low as 80,000 yuan.

After subsidies ranging from 7.96 yuan to 11.26 yuan, the price becomes even cheaper when you factor in subsidies from manufacturers and 4S stores.

This will make it easier for bus companies in various cities to make large-scale purchases. Tan Jincheng has decided that after the Guangzhou Auto Show press conference, he will promote the Aion S to bus companies in major cities and accept reservations in advance.

Assuming each city orders 500 to 1000 Aion S vehicles and promotes them in first-, second-, and even third-tier cities, in addition to achieving sales of tens of thousands of vehicles, it can also accelerate the promotion of electric vehicles.

To fully promote electric vehicles, we still need to rely on public utilities.

Electric taxis and electric buses are currently of far greater strategic significance than regular passenger vehicles.

At this year's Guangzhou Auto Show, Weilai Auto is ready to make a big splash.

Huanghai Bus's electric bus models, Aion S, Weilai ES6, and Yangzi Pickup's new model are all scheduled to be launched at the Guangzhou Auto Show. Among them, the electric bus and Aion S will be available for pre-order by the end of this year.

Pre-orders for the Weilai ES6 will have to wait until next year.

Unfortunately, producing a few prototypes is not a problem, but mass production of Weilai Auto is not yet feasible. Using a pre-order system is more suitable for cost control.

"You two have a long way to go."

After saying this, Tan Jincheng sighed and spoke earnestly.

Although the R&D progress of new energy vehicles has been greatly accelerated under Tan Jincheng's requirements, there are only four months left until the Guangzhou Auto Show. They need to thoroughly understand the technology learned from Tesla and apply it to their own models.

This timeframe is still very tight.

The Maodou S was announced in 2009, and its official launch was around the end of 2012. The mass production and launch of the ES6 and Aion S were also around the same time in early 2013.

"How can you call it head-on competition? Elon, you can think of it as us promoting the electric vehicle industry together in the East and the West, and working together to expand the market."

When the two sides officially sat down at the negotiating table, Tan Jincheng did not expect that the first thing Factory Director Ma would raise was that the launch time of Weilai's new energy vehicles was close to that of Maodou S, which would create a competitive relationship.

Damn, I have to say this old guy is really shrewd. Maodou S initially entered the Chinese market as an import.

Maintaining the status of imported models can certainly preserve the image of high-end electric vehicles, but it also makes it impossible to lower the price. It is certain that once the Model S enters the Chinese market, its price will remain high.

In recent days, through contact with the Weilai Auto team and the personal information collected about Tan Jincheng, Musk has keenly discovered that this young man, who attaches great importance to technology, will definitely be different from other Chinese car companies if he wants to make electric cars.

This can be seen from the Yuechi A1, which was designed entirely independently.

In addition, regarding power batteries, just as Tesla is backed by Daimler, WILAY's batteries are backed by BMW. Being able to meet BMW's power battery requirements, its battery technology must be quite good.

With its founders' determination, advanced power battery technology, and independent design capabilities, all signs indicate that Weilai Auto will be a strong competitor to Tesla in the future.

At this moment, Factory Director Ma was actually a little uneasy about cooperating with Weilai Automobile.

"How can Mr. Tan be so sure that we are not using our own technology to cultivate competitors?"

One of Tesla's board members asked a rather pointed question: Before entering the electric vehicle business, Tesla was actually an electrical and solar energy storage company, and their own battery technology was also quite good.

To put it bluntly, before they started making cars, they were just suppliers to others, and their technologies in motors, batteries, and energy storage were quite advanced.

From the moment Tan Jincheng discussed with Musk about distributing Roadster in the Chinese market and acquiring Daimler shares, the relationship between the two parties was no longer a simple patent exchange, but a comprehensive strategic partnership.

If I agree, there are many things to consider, such as whether I would use my technology to cultivate a strong competitor.

According to information obtained by Herbert's Kohler family, Tan Jincheng and Weilai New Energy Group, who were originally not taken seriously by the Tesla board, have become several levels of threat.

Oh, and there's also the influence of a Toyota representative who claimed that, taking advantage of the Toyota recall, the sales of the Yuechi A1 model under Weilai Auto have surpassed those of the RAV4 in the Chinese market.

He has money, connections, decisiveness, and market judgment; the only thing he might lack is technical skills.
What does Tesla gain from partnering with a car company like this?
How can we leverage Weilai Auto's distribution channels to open up the Chinese market ahead of time?

Besides that, there doesn't seem to be anything else, right? In the long run, entering the booming Chinese market early is extremely beneficial for Tesla. Even the Model S, which is still under development, has long had plans to enter the Chinese market.

In the short term, however, with only the Roadster model available, which is a sports car and not a high-volume seller, its entry into the Chinese market is not particularly significant.

On the contrary, it may create a potential competitor for yourself.

Faced with this unfamiliar face, Tan Jincheng shook his head and said bluntly, "Technology is meant to be used for breakthroughs. It's difficult to go from 0 to 1, but it's not difficult to go from 1 to 100. I believe that even without Tesla's technology, we can still realize my dream of an electric car based on the existing foundation."

"If you're afraid of the competition you envision, then I suggest you just sell your shares to me. You can go enjoy your lives, and I'll acquire Tesla. I can still scrape together $20 billion."

Tan Jincheng spoke directly in English without an interpreter. Apart from some members of his own team who couldn't understand, all the foreigners in the room were astonished, including Shen Nanpeng, who was invited to attend.

A brief silence fell over the conference room, creating an eerie atmosphere.

In the eyes of foreigners, Chinese people are rather timid when it comes to cooperating with them, especially in seeking technological cooperation. They are always willing to cooperate, not because they don't want to, but because they want more benefits.

As Tan Jincheng said, it is difficult to go from 0 to 1 in technology, but it is not difficult to go from 1 to 100. Weilai Auto's technology is not bad. As long as they are given time, they can gradually achieve breakthroughs.

As for patents, if the other party doesn't enter the North American market and only sells in the Chinese market, there's not much you can do even if they infringe on your patents. At worst, you can only go to court.

Moreover, there are ways to circumvent patents.

Shen Nanpeng was surprised that the usually gentle and refined Tan Jincheng would act this way. Although he was always very assertive at the negotiating table, he always dealt with the matter at hand and would not threaten the other party so forcefully or make such a strong statement that he could directly acquire the other party.

About half a minute later, applause rang out in the conference room; it came from Musk, who was sitting in the head seat.

"Tan is right. If we were afraid of competition, then I wouldn't have needed to take over Tesla. However, from the current perspective, becoming a strategic partner with Weilai Motors doesn't offer much benefit to Tesla at this time."

"Haha, if that's the case, then it's easy to discuss. Tell me your terms; oh, by the way, Herbert, what does your company say?"

They just feel the benefits aren't enough, which isn't a big problem. They can just inject more capital. But all of this is contingent on the ability to acquire shares in Daimler or other institutions, making Wei a major shareholder of Tesla.

"No problem, Daimler has agreed to Mr. Tan's acquisition plan, and we can sign the contract at any time."

Tan Jincheng arrived in NY on the 17th and reached Texas on the 18th. On the same day, he revealed the cooperation plan to Musk and Herbert. Today is the 23rd local time. He has been waiting for Daimler's news for five days.

These five days weren't entirely uneventful; with Shen Nanpeng's assistance, Tan Jincheng contacted other investment institutions, including Toyota.

The best option is to directly acquire Daimler's shares, as it is fast and efficient. The next best option is Toyota, whose shareholding is not much less than Daimler's.

The next option is to acquire shares from investment institutions and funds, which is more troublesome because these institutions hold relatively few shares and require contacting many of them.

Toyota's attitude was ambiguous; it neither said it would sell nor that it would not, but simply indicated that it would seriously consider the matter.

According to Tan Jincheng's guess, the other party is probably considering the competitive relationship between the Yuechi A1 and RAV4 in the domestic market before deciding whether to sell.

Having more shareholders in a listed company is a good thing, as everyone can work together to make the pie bigger and share more profits. However, everything has two sides, and disagreements can easily arise when faced with certain interests.

Tan Jincheng has announced that he will acquire Tesla shares at a price that is about 20% higher than the current market value. It's hard for some minority shareholders not to be tempted.

Wall Street capital has always been money-grubbing.

Musk isn't afraid of Tan Jincheng acquiring shares in Daimler or Toyota, but he'd be unhappy if Tan acquired too many shares from minority shareholders, which is why he strongly recommends Daimler.

Fortunately, his efforts paid off, as Daimler agreed to sell its 8.57% stake in Tesla for $2 million.

Of course, Herbert, a close friend of Daimler, played a significant role in this. Although Herbert was a board member of Daimler at Tesla, he was in fact an ally of Daimler.

“OK, then there’s no problem. Now Elon, you can tell me your conditions. If they’re not excessive, I can agree to them right now.”

With the shareholding issue resolved, everything is easy to handle. It's just a matter of money, we're not short of cash.

(End of this chapter)