Behind the privatization Tesla or the big action funds are not excluded from China

Abstract Recently, in the interview, Tesla CEO Elon Musk restored the ins and outs of the tweet to consider the privatization of Tesla. Mask whispered a review of the enormous pressures faced in the past and the impact of overworked work on his personal condition. He believes that the past...

Recently, Tesla CEO Elon Musk in the interview, restored the tweet to announce the consideration of the privatization of Tesla. Mask whispered a review of the enormous pressures faced in the past and the impact of overworked work on his personal condition. He believes that the past year is the "most difficult and painful year" in his career.

However, the capital market does not believe in tears. On Friday, Tesla's share price opened lower and fell below the intraday low of 303.60 US dollars, the largest decline of 9.5%, the lowest since August 2. After Musk’s sorrowful cry, Tesla’s share price ended in a plunge.

Some analysts said that at this stage, Musk is unlikely to get more benefits from US bond investors, and should get faster financing in China as soon as possible. "China has sufficient market size and capital strength, and does not rule out that privatization funds will be drawn from China."

The "Securities Daily" reporter noted that after the real estate has been strictly controlled and the attraction has gradually receded, the new energy automobile industry, which can incite the extremely long upstream and downstream industry chain and simultaneously penetrate the Internet and the concept of innovation, has become the capital darling. Cui Dongshu, secretary-general of the National Passenger Car Market Information Association, said that “new energy vehicles have great development potential, large scale, state subsidies and high profits, which are the reasons for attracting capital.”

There are also different opinions that believe that after Jobs, Musk has become a manifestation of US national interests and will. To some extent, even if privatized, the US government will not let the equity of such an important company fall, especially in China.

It is worth mentioning that, for the reason why Musk suddenly chose to privatize the company at the time of the large-scale development cycle, the above-mentioned people speculated that "Muske has a high probability to make controversial and bearish stock price decisions in the near future."

Privatization funds or from China

Recently, Musk issued a document explaining the source of funds in the 720 million US dollar "privatization" rumors of the sensation of the market last week, and expressed confidence in the transaction. "After I left the meeting on July 31, there was no problem in getting a deal with the Saudi sovereign fund. The only thing left was the process of going through the game." Musk explained the source of the funds last Monday. "That's why I pushed Terry on August 7th to say 'funds are guaranteed'."

However, recently, some people close to PIF said that although PIF holds hundreds of billions of dollars in funds, on the one hand, PIF has held nearly 5% of Tesla's shares; on the other hand, the PIF of $45 billion invested in Softbank certainly knows. Softbank invested in the GM fourth-generation Cruise driverless car early this year. So before getting the investment guidance from Softbank, PIF will not be involved in Tesla privatization transactions, nor will it be prepared to intervene in similar transactions.

The "Securities Daily" reporter noted that Tesla's China business is currently in a high stage. Data shows that Tesla China doubled its sales last year by more than $2 billion. According to the average selling price, Tesla sold more than 20,000 domestic sales in 2017. It is worth mentioning that in the United States, a Model S with a price of 72,000 US dollars, after shipping to domestic additional tariffs, sold for 135,000 US dollars, an increase of nearly 90%.

In this regard, some analysts said that China has sufficient market size and capital strength, and does not rule out that privatization funds will be drawn from China. "This also explains that nearly 500 new energy vehicle companies in China can always attach capital capital owners." In his view, Tesla has a strong product appeal in China, and objectively it is the only one that is wholly-owned in China. The foreign car companies have obvious advantages in starting. In addition, the administrative privileges of the Shanghai local government, combined with the capital endorsement of the second largest public shareholder, Tencent, will benefit Tesla's development in China.

However, there are also different views that domestic investors value short-term interests, and Tesla's long-term losses and huge losses are difficult to evoke the interest of domestic investment institutions and even investors.

Some investors in the auto industry told reporters that Tesla could not make any money in China's capital, and financial institutions and stock markets outside the bank could not get money. This can be seen from the way that Tesla Shanghai built a bank mortgage loan.

In addition, the investor said that after Steve Jobs, there is an urgent need for a leading figure in the US scientific and technological community, and Musk, who is wearing multiple mythical cloaks, has become the best candidate. In fact, the reason why Space X can rise and grow is to rely on the large number of orders provided by NASA and the Merlin 1 engine technology.

In his view, Musk has become a manifestation of the national interests and will of the United States to some extent. Even if it is privatized, it will not let the equity of such an important company fall by, especially today and today in China.

Tesla has a short-term or big move

According to the information released in the second quarter earnings report and subsequent conference calls, the current model 3 weeks production has reached the level of 5,000 units per week, which not only became the highest-selling product in the US mid-size luxury car market, but also surpassed the total sales of competing products. The market share in the United States reached 52%.

In fact, 2018 is a good thing for Tesla. Compared with the “capacity hell”, which has been seriously imbalanced between supply and demand, Tesla has announced that the weekly production of Model 3 will increase to 10,000 units by the end of 2020. Increase annual production capacity to 1 million units. In addition, on the factory side, with the Shanghai Lingang factory agreement reached, the European factory will also be finalized at the end of the year. Even more gratifying is that in the conference call, Musk once again stressed that Tesla will achieve profitability in the third quarter.

However, just as Tesla seems to be on the right track and is about to usher in a large-scale development cycle, Musk is determined to carry out privatization under pressure from all sides. In this regard, some industry veterans speculate that Tesla's probability may be to make some decisions that are contrary to experience, controversial and bearish on stock prices.

The reporter learned that in the past two years, Musk has acquired two German automated production equipment manufacturing companies, Grohmann Engineering of Germany and Perbix, Minnesota, USA, for the automated production of Model 3 and Model Y.

Although Musk never shunned the obsession with automated production, the automated production line was far less successful than expected. As a result, Musk has repeatedly suspended and revised the production schedule in order to reduce the automatic participation rate, expand the recruitment of skilled workers, increase manpower input, reduce computer control processes, and even set up tents for temporary production.