At the same time, Nvidia closed at about 148 US Dollar that day, almost flat.
The market showed that there was no main force following Short Selling on Nvidia - all the firepower was concentrated on Tesla.
The vultures calculate very clearly:
Suppressing Nvidia requires additional capital costs, and the position of Era Vanguard on Nvidia is already locked due to the restrictions of HSR Filing and Section 16(b), and does not require additional suppression.
As long as the staking safety pad of Tesla is broken, Era Vanguard will naturally be forced to make a forced choice on Nvidia.
And if Era Vanguard is forced to reduce its holdings of Nvidia to raise funds to cover positions--
Section 16(b) Short-Swing Profit Recapture Provision will allow them to spit out all profits from the reduction of their holdings within six months to the Nvidia company.
This is a blockage at both ends.
After the market closed, news came out from several major trading desks of Wall Street at the same time:
Tesla Among Short Selling Trading Volume on that day, at least four major selling channels came from the same batch of Hedge Fund who had deeply studied the position structure of Era Vanguard in the past two months.
No one admitted that they participated in the "sniper", but NASDAQ's transaction details will not lie.
Citigroup and Risk Control Department of Morgan Stanley each issued Inquiry Letter to Era Vanguard after the market closed--
The wording is polite, and the content is to remind the pledger of changes in the market value of the pledge, and to suggest that the pledger pay attention to the capital arrangement of the margin account.
Manhattan In the Explorers Club in the lower city, the fire in the fireplace has burned down to the third oak log.
White-Haired Old Man sat on the same leather chair, spread a handwritten transaction summary on the coffee table, and said to the few people gathered in front of the fireplace:
"Gentlemen, on the first day, Tesla fell by 13%, and the market value of Era Vanguard's collateral shrank by more than 700 million.
If it falls for another two days, the investment bank's call notice will appear in Era Vanguard's mailbox.
At that time, they will only have to make a multiple-choice question with no options between Apple's withdrawal of 900 million funds and Nvidia's reduction of floating losses."
He folded the piece of paper and put it in his suit pocket.
"Continue tomorrow. Every time Tesla falls by 10 US Dollar, the pressure on Era Vanguard to replenish the position will increase. This cycle has just begun to spin now, don't let it stop."
Su Wantang switched the page of Bloomberg Terminal from Tesla to Nvidia.
On the screen, Nvidia and Time-sharing Chart are a lazy straight line--
Trading Volume and the fluctuation range were within the normal range throughout the day, and there was no sign of following Short Selling.
Her fingers paused on the keyboard for a moment. "Xiao Chen, Tesla's layoff news, Elon Musk, has it been decided long ago?"
Zhao Chen turned the phone over and placed it on the coffee table.
"Yes. Not only will there be layoffs, profits in the fourth quarter will also be lower than in the third quarter.
He called me this morning before the email was sent.
The wording is the same as the email. The road is very difficult and there is no other way except layoffs."
Su Wantang and Zhang Qingxue raised their heads at the same time.
"He told me in advance, but we didn't expect that this matter would be used by Wall Street.
But whether we can stop the loss in advance is beyond our control."
Zhao Chen Lean back in your chair,
"Tesla's decision to lay off employees was made by him, and he is the CEO of Tesla.
This account cannot be settled on anyone, it is the price he must pay to keep the company."
He paused,
"We will continue to speed up the liquidation tomorrow Apple. When we need to add margin, we will make up the margin as soon as possible.
Then wait--wait until the stock price of Tesla stops falling."
In the next few days, Short Sellers's momentum of smashing the market became weaker and weaker.
It's not that they don't want to hit it, it's that at the 300 US Dollar mark, the bulls' resistance is much stronger than expected.
When the intraday stock price hit the lowest level of 295 US Dollar, batch after batch of copycats placed buy orders at positions below 300 US Dollar.
The volume is not huge, but like the waves at high tide, one wave recedes and the next wave comes up again.
Several large orders of Short Sellers were eaten when they hit around 298. They were eaten again and again. They failed to penetrate the intraday low of 295 on the 18th many times in a row.
The bulls are like drawing a horizontal line in front of the 300 US Dollar mark. Short Sellers has been smashing day after day, hitting it and bouncing back, hitting it again and bouncing back.
The atmosphere in Explorers Club is much calmer than before.
White-Haired Old Man put the cigar next to the ashtray, and the transaction summary table in front of him was updated to the latest page.
"Tesla 300 US Dollar This line is not easy to hit. The bulls have more defensive orders at this position than we expected--
Not only are retail investors copying the market, there are several pension funds and index funds that are passively building positions below 300.
After Tesla fell 13%, the valuation has returned to a range that they find acceptable."
He pushed the piece of paper to the center of the coffee table and tapped his fingers on the number 300.
"Don't hit hard. Bulls below 300 are too defensive. Hitting hard will consume our own ammunition.
Let the stock price stay around 300 for a few days. You can close part of the profit from the Short Sellers position first to lock in the profit.
Then wait - wait until the bulls think it's safe, then the next wave will have the power to break through."
This is the most classic and cruel move in Wall Street sniper battle:
Stop at the key support level and pretend to be exhausted, making the bulls think that this is the bottom, and giving those who are trapped above 300 US Dollar the illusion that "it's a good thing it didn't continue to fall."
When the bulls start to relax, the new selling will be truly fatal.
They didn't stop attacking, they used time to break down the defense.
For several consecutive trading days, the stock price of Tesla fluctuated within a narrow range around 300 US Dollar, while Trading Volume gradually shrank.
Bulls and Bears The two sides seem to have temporarily reached some kind of fragile truce agreement at the 300 US Dollar mark.
The group in the Explorers Club didn't leave--
They relisted Put Option above 300 US Dollar, using the profits locked in the previous closing as ammunition for the next round of betting.
Zhao Chen is sitting in the Suite of the hotel, and the Time-sharing Chart of Tesla on the Bloomberg Terminal in front of him form a lazy line.
He picked up his cell phone from the coffee table and dialed the number Elon Musk.
Soon, Elon Musk's voice came from Fremont, with something Zhao Chen rarely heard from him--
It's not exhaustion, exhaustion is the normal state of Elon Musk. It's a kind of pause close to self-doubt.
"Zhao. The market's reaction to the layoffs was greater than I expected.
Deliveries in the fourth quarter were slightly lower than expected, and profits were lower than in the third quarter.
The stock price is now trading sideways near 300 US Dollar, and Wall Street analysts are saying that the demand for Tesla has reached its peak.
The growth rate of Model 3 orders has begun to slow down, and orders for United States have indeed come down after the decline of Federal Subsidies. The cost of the price reduction impulse is greater than I thought."
He paused and said, "I'm wondering if we should speed up the development of Model Y.
But funding is a problem. The cash saved from layoffs is not enough to cover two quarters of losses.
Zhao, do you know what's the most ironic thing? Tesla's factory in Fremont can produce more than six thousand Model 3 vehicles every week, but Wall Street only cares about one thing--
Can we deliver more than 90,000 vehicles in the next quarter? If it's less than one, the stock price will fall."
Zhao Chen did not answer immediately.
He switched the page of Bloomberg Terminal from Tesla to Nvidia and back again, tapping his fingers slowly on the windowsill.
"Elon, I don't want to say nonsense like everything will be fine.
But there is one thing I want to tell you - Nvidia Financial Report plummeted last November, and the stock price fell from 292 US Dollar all the way to 140.
Wall Street Everyone said that Nvidia's game business growth rate has peaked, Data Center demand has slowed down, and the channel inventory after the cryptocurrency bubble burst will never be cleared in this lifetime.
Your current situation is not fundamentally different from Nvidia last November.
Wall Street is not questioning the value of Tesla - Wall Street is using price fluctuations to create panic and force the bulls with the highest leverage to hand over their chips at the bottom."