The next day, May 8th.
Short Sellers keeps up the pressure.
Tesla Opening Price opened at the price of 188 US Dollar.
During the pre-market trading stage, sell orders have already piled up, and Short Position of Muddy Waters and Citron are still increasing their positions.
And those small and medium-sized Hedge Fund that followed the trend also moved their Put Option Strike Price down one notch.
It's no secret that Era Vanguard's Pledge Liquidation Line is Wall Street.
When Lin Shicheng last replenished his pledge, Risk Control Department from four investment banks handled relevant documents, and Wall Street's PB circle has always been a leaky sieve--
The number 178 US Dollar has been spread throughout Midtown Manhattan and Trading Desk through various private channels in the past few trading days.
In Short Selling's statement, Muddy Waters even used the undisguised wording of "certain leveraged longs",
Citron's Andrew Left even said that sentence to the camera on CNBC's online program--
"Near 178 is Liquidation Line. Once it breaks down, everyone will witness history. Let's wait and see."
Prior to this, the securities firm had called for margin multiple times, and the calculation was strictly based on the initial contract--
The gap in the replenishment amount is getting closer and closer to Liquidation Threshold.
But Era Vanguard was unable to pay the additional cash, and the news leaked out from PB Departments.
No one in Wall Street doubted that Era Vanguard had very little cash left.
But there was no resistance on the board.
Buy orders from long positions are still pouring in in batches, with several pending orders exceeding 200,000 shares forming a defensive belt near 180 US Dollar--
That is some pension funds and index funds passively building positions, and there are also old-school bulls who have survived the retail uprising before and continue to buy lows.
They repeatedly appealed in various trading forums and crypto groups:
The survival of Era Vanguard Pledged Shares is not someone else's business. Once Era Vanguard's Pledged Shares is completely liquidated,
Those 16.6 million shares will hit the market like a rolling stone, driving the stock price from 180 to unimaginable abyss.
Then the multi-killing and multi-trampling officially begins, and all those holding long positions will be run over.
To protect Era Vanguard from being liquidated is to protect themselves from the price of the rooftop.
In this way, the stock price continued to approach 178 US Dollar in the fierce Bulls and Bears game.
At ten o'clock in the morning, more than 300,000 shares of Short Position were sold at the position of 182 US Dollar, and the stock price fell below 181.
Short Sellers tried to take advantage of the situation and placed large sell orders continuously, but the defense of many parties piled up several thick buy orders between 179 and 180--
Every time it falls below 180, it bounces back a little.
The K line on Time-sharing Chart repeatedly tried to get below 179.50, but every time it was resisted by the blunt Buying Pressure.
At two o'clock in the afternoon, Short Sellers launched the most violent offensive of the day--
Several concentrated selling attacks instantly drove the stock price down to the lowest of the day at 179.50 US Dollar, leaving only 1.5 US Dollar away from Liquidation Threshold.
At the last moment, the bulls used intensive small and medium-sized buying orders to lift up the price, and finally closed at 180 US Dollar.
When the closing bell rang, the closing price of Tesla on Bloomberg Terminal was fixed at 180 US Dollar.
Shen Zhiyi said softly, "It's closed at 180."
Her voice was very soft, as if she was saying that a person who had just taken a step back from the edge of the cliff still needed to continue breathing.
Su Wantang removed her fingers from the back of Zhao Chen's hand, and she saw that there was no trace of relaxation in his pupils.
After the closing bell rang, the sound of opening Champagne was heard in Midtown Manhattan, Hedge Fund and Trading Room.
Beside the fireplace in the Explorers Club, White-Haired Old Man raised the Whisky cup and nodded slightly to the people present.
Tesla closed at 180 US Dollar, which is less than two US Dollar from Era Vanguard's 178 US Dollar Liquidation Threshold.
At this position, as long as the market opens again tomorrow, the 16.6 million shares of Pledged Shares will pour into Secondary Market like an avalanche.
"178, only two dollars difference."
He put the cup down, leaned back in the leather chair, and crossed his fingers.
But when he raised his eyes and scanned the people present, he found that not everyone was as relaxed as he was.
At the end of Long Table, there was an analyst in a dark gray suit who did not raise his glass. Instead, he stared at the position structure chart of Era Vanguard on the laptop screen, his brows furrowed into the Chinese character "Sichuan".
"I have a question that I can't figure out."
The analyst turned the screen over and clicked his finger on the line of numbers Nvidia.
"Era Vanguard holds more than 71 million shares in Nvidia, with a market value of more than 10 billion US Dollar. Why don't they reduce their holdings?"
The fire in the fireplace crackled. White-Haired Old Man didn't answer immediately.
He picked up the Whisky cup at hand and put it down again.
"Have you ever thought about it?"
The analyst's voice was not high, but every word was like pushing a stone into every wine glass present.
"Era Vanguard would rather be pushed to the edge by us on Liquidation Line on Tesla than sell one share on Nvidia.
This is not a technical issue - reducing Nvidia is much faster and more direct than covering Tesla.
As long as they are willing to sell, even if it is only 10%, the cash gap can be filled immediately.
But they would rather liquidate their positions than sell. Put this multiple-choice question on any Hedge Fund, and the answer is obvious.
But Era Vanguard chose the least likely answer. Why?"
No one answered.
The sound of the wine glass hitting the ice suddenly became very clear.
"What will be triggered if Nvidia is reduced?"
Analysts ask and answer questions for themselves,
"Article 1, Section 16(b)Short-Swing Profit Recapture Provision.
Era Vanguard holds more than 10% of the shares of Nvidia, which belongs to the legal Insider.
All profits from buying and selling within six months, regardless of whether you used inside information or not, must be returned to Nvidia Company.
Moreover, the law enforcement logic of this article is strict liability - not 'did you actually make money'?
The SEC calculates a theoretical profit by forcibly matching the lowest buying price and the highest selling price, and lets you spit out this theoretical profit."
The analyst continued,
"Article 2: Risk of misstatement in 13D declaration. Era Vanguard clearly declared its position as a 'long-term Strategic Investment investor' to the SEC in 13D.
If they reduce their holdings of Nvidia now to raise funds to cover their positions, the SEC can definitely determine that their declaration contains false statements--
You said you were a long-term investor, but you started to reduce your positions when you were attacked by Short Selling institutions and Capital Chain became nervous. Your purpose of holding shares is obviously inconsistent with the 13D declaration."
Another person who had been looking down at his phone turned the screen to everyone:
"More important is the SEC's crackdown on false statements in recent years.
In the enforcement action last September, Alphabet was fined 750,000 and Goldman Sachs was fined 30 million.
In addition to fines, the SEC can also apply to the federal Court for an injunction - prohibiting Era Vanguard from increasing its holdings of Nvidia again within a certain period.
It is even possible to revoke Era Vanguard's nomination rights for Board of Directors Seat in Nvidia and Major Matter Voting Rights.
For an organization that calls itself a 'long-term Strategic Investment', this penalty is equivalent to freezing all its rights on Nvidia Shareholder Register."
"Article 3: Chain reaction of antitrust review."
Another shorter partner added,
"The FTC just approved HSR Filing for Era Vanguard.
If they reduce their holdings of Nvidia at this node, the FTC will re-examine the authenticity of the previously audited materials.
If the FTC determines that Era Vanguard concealed the true financial status or stockholding intentions in HSR Filing, the entire review will be overturned and restarted.
What's more serious is that the FTC can transfer the case to Department of Justice for criminal investigation--
Although it is a small probability event to reach this point, once it is launched, all assets of Era Vanguard in United States may face a freezing order."
The analyst raised his hand from the computer and scanned the faces of the people present one by one.
"High taxes, SEC regulatory penalties and even criminal risks, FTC re-examination --
Adding these three together, the cost of reducing holdings of Nvidia cannot be measured by money."
He closed the screen.
"So Era Vanguard would rather hold on to Tesla than reduce one share of Nvidia.
This is not a technical choice, it is us forcing them into a dead end that they have set long ago -
But the wall of the dead end was built by themselves.
Lin Shicheng, this old lawyer, every word he wrote in 13D was a shackle he put on himself.
If you reduce your holdings of Nvidia, they will die faster. If you don't reduce your holdings, we will die for them."