Thursday, March 15th.
When Zhao Chen woke up in the morning, the pre-market quotation of Tesla was 252 US Dollar, which was 6 US Dollar lower than yesterday's closing price.
The aftermath of Citron Research Report is still brewing, and the panic in the Asia market has been transmitted to North America.
When he went downstairs to have breakfast, Zhang Qingxue was already in the restaurant.
Her expression was more solemn than the day before.
"Xiao Chen, it has dropped to 252 before the market opens. Short Sellers is still at Add Position."
Zhao Chen sat down and poured a cup of tea.
He made a mental calculation - he currently holds 14.6 million shares, accounting for 8.69%, which is about 2 million shares short of 9.9%.
If you buy 2 million shares today, your total holdings will reach 16.6 million shares, which is just within 9.9%.
He didn't want to exceed 10% and trigger stricter disclosure requirements.
"Buy 2 million shares today. Stop after buying. Don't exceed 9.9%."
Zhang Qingxue nodded. "Understood. The target is 16.6 million shares."
At 9:30 in the morning, US Stocks opened.
Tesla opened at 252 US Dollar, down 6 US Dollar from yesterday's closing price.
After the market opened, selling orders continued to pour in, and the stock price instantly fell to 250.
Zhao Chen stood in front of the screen, his voice was very calm.
"Start buying. Below 255, buy as much as you can. But remember - the total amount is controlled within 2 million shares."
Zhang Qingxue entered the first instruction:
300,000 shares, price limit 255 US Dollar.
Transaction, average price 252.5 US Dollar.
The stock price was pulled from 250 to 253.
Selling orders immediately came out, pushing the price back to 251.Zhang Qingxue did not stop.
The second tranche: 300,000 shares, price limit 254 US Dollar.
Transaction, average price 252.8 US Dollar.
The stock price was pushed to 254.
Selling orders came in again, pushing the price back to 252.
The third tranche: 300,000 shares, price limit 253 US Dollar.
Transactions were completed, with an average price of 251.5 US Dollar. The stock price was pushed to 253.
Selling orders are still pouring out, but the intensity has obviously weakened. Three consecutive days of large purchases made Short Sellers start to hesitate - this buyer's bullets seem to never be exhausted.
Zhao Chen said, "Continue. There are still 1.1 million shares."
The fourth tranche: 300,000 shares, price limit 252 US Dollar.
Transaction, average price 250.5 US Dollar.
The stock price was pulled from 252 to 253, and then fell back to 251.
The fifth tranche: 300,000 shares, price limit 251 US Dollar.
Transaction, average price 249.5 US Dollar.
The stock price fell below 250, hitting a low of 248, but was quickly pulled back.
The sixth tranche: 300,000 shares, price limit 250 US Dollar.
Transaction, average price 248.5 US Dollar.
The seventh tranche: 200,000 shares, price limit 249 US Dollar.
Transaction, average price 247.8 US Dollar.
A total of 2 million shares were purchased throughout the day, with an average price of 250.5 US Dollar.
The total shareholding reached 16.6 million shares, accounting for 9.88% of the total share capital of Tesla.
There are still 200,000 shares short of 10%, and the safety margin is sufficient.
At the close, Tesla closed at 252 US Dollar, which was 6 US Dollar lower than yesterday's closing, but rebounded by 4 US Dollar from the intraday low of 248.
Zhao Chen looked at the number on the screen and took a long breath.
16.6 million shares, 9.88%.
This is the red line he set for himself.
If it does not exceed 10%, there is no need to submit 13D, there is no need to disclose the investment purpose and source of funds, and there is no need to explain why you want to buy Tesla.
13G is enough. Submit an amendment within 45 days of the end of the quarter telling the SEC "Era Vanguard holds 9.88%" and then nothing happens.
Zhang Qingxue closed the computer and turned to look at Zhao Chen. "Mr. Xiao, let me do some calculations first."
Zhao Chen nodded.
Zhang Qingxue opened the notebook, which densely recorded the date, number of shares, and price of each transaction.
She started adding money one by one on February 28.
Su Wantang also came over and helped her review with the calculator on her phone.
"On February 28, I bought 1.2 million shares at an average price of 271.6 US Dollar.
On March 1, 700,000 shares were purchased, with an average price of 273.2 US Dollar.
On March 2, 700,000 shares were purchased, with an average price of 274.8 US Dollar.
On March 5, 500,000 shares were purchased, with an average price of 275.5 US Dollar.
On March 6, 500,000 shares were purchased, with an average price of 275.8 US Dollar.
On March 7, 700,000 shares were purchased, with an average price of 277.8 US Dollar.
On March 8, 500,000 shares were purchased, with an average price of 277.5 US Dollar.
On March 9, 500,000 shares were purchased, with an average price of 275.8 US Dollar.
On March 13, 500,000 shares were purchased, with an average price of 281 US Dollar.
On March 14, 1.2 million shares were purchased at an average price of 261.8 US Dollar.
On March 15, 2 million shares were purchased, with an average price of 250.5 US Dollar."
Zhang Qingxue pressed his finger on the calculator for more than a minute, then raised his head.
"A total of 7.6 million shares have been added, with an average price of 268.2 US Dollar.
Including the 9 million shares opened in January, the cost is 318.5 US Dollar.
A total of 16.6 million shares, the total cost is approximately 4.86 billion US Dollar, the weighted average cost--"
She clicked on the calculator a few more times. "About 292.8 US Dollar."
Su Wantang said softly next to him:
"Based on today's closing price of 252, the floating loss per share is 40.8 US Dollar, and the total floating loss is approximately 680 million US Dollar.
Including the loss of 23.75 million US Dollar on Options, the total floating loss is approximately 700 million US Dollar."
The office was quiet for a few seconds.
Zhao Chen was leaning on the sofa, his expression unchanged.
The floating loss of 700 million US Dollar sounded scary, but he knew in his heart that it was not a real loss.
As long as he doesn't sell, these numbers are just numbers.
When Tesla's production capacity problem is solved and market sentiment reverses, these figures will turn into profits.
Zhang Qingxue closed the notebook and looked at Zhao Chen.
"Xiao Chen, there is one more thing. Our initial planned investment in Tesla was 6 billion US Dollar.
Now only 4.86 billion have been actually used, plus the 1 billion from Apple, plus the remaining ones from Treasury Bonds, there is still about a total of -"
She lowered her head and calculated, "There are still about 2.1 billion US Dollar lying in Treasury Bonds. What will be done with this money next?"
Zhao Chen picked up the tea cup on the coffee table and took a sip.
The tea has cooled down, and the bitter taste spreads on the tip of the tongue.
He did not answer immediately, but looked at the night view of Manhattan outside the window and was silent for a while.
"Look again." He said, "Now the position of Tesla has been completed, and the position of Apple has also been completed.
Don't move the remaining money, put it in Treasury Bonds and wait for the opportunity."
Zhang Qingxue asked, "What kind of opportunity are you waiting for?"
Zhao Chen thought for a while and shook his head.
"I haven't thought about it yet. The market is too chaotic now. The wave of Tesla is not over yet, and Short Sellers is still here.
Let's wait until the situation becomes clearer. We have the money in hand, so there's no rush."
Su Wantang nodded beside him without asking any more questions.
Zhang Qingxue wrote down the words "waiting for opportunity" in his notebook, and then closed the notebook.
"I understand. Then after the market opens tomorrow, we will do nothing?"
Zhao Chen nodded. "Do nothing. Let the market take its own course. We have bought everything we should buy, and the rest is to wait."