On the last day of July, the stock price of Tesla stood firmly at 300 US Dollar after consolidating for many consecutive days.
From 178 US Dollar on May 9 to 300 US Dollar today,
In more than two months, the rebound has exceeded 120 US Dollar.
Short Sellers's Stop-loss Selling and chasing orders flooded in alternately during this period, crushing every integer barrier to the ground.
Chen Xi turned off the transaction data, leaned back in his chair and rubbed his eyes, then picked up the intercom and dialed the number of Zhao Chen.
"Zhao Zong, the stock price has returned to 300.
The floating profit of the 26 million shares in our hands has covered all the previous replenishment costs and interest expenses near 178.
Do you want to take advantage of this position to add a little more?
Short Sellers still has remaining positions that have not been closed. If we continue to sweep goods, we can penetrate their last line of defense."
Zhao Chen was sitting in front of Floor-to-Ceiling Window of Suite. The clouds above Hudson River outside the window were torn into pieces by the afternoon sun.
There were two documents spread out on the coffee table in front of him. One was the latest position summary table of Era Vanguard--
Tesla has approximately 26 million shares, accounting for approximately 14.8% of the total share capital, and Nvidia has approximately 94.1 million shares, accounting for approximately 15.5% of the total share capital;
The other is a draft of Schedule 13D Amendment Filing sent by Lin Shicheng this morning. The core wording is only one sentence--
"This increase in holdings has been completed and will be converted to Long-Term Holding Strategy."
He picked up the Pu'er that Su Wantang had just refilled and took a sip.
"No need. I have an appointment with Elon Musk. 26 million shares are enough.
We are not here for short-term speculation, and we are not here to make money.
If Short Sellers is penetrated, that is the market's business. If we continue Add Position, that is our business.
The role of Era Vanguard on Tesla will be changed from Tactical Allocation to Strategic Allocation from now on--
No increase in holdings, no reduction in holdings, no swings.
We are long-term shareholders, and we are not here to teach Elon Musk how to build a car."
Chen Xi was silent for a moment on the other end of the phone.
As an investment manager, her instinct is to take advantage of the victory--
Short Sellers is still collapsing, and the stock price still has inertia. If you get more chips, you can make more money.
But she has been with Zhao Chen for so long and has learned to think about problems in his way:
Sometimes what you don't do is more important than what you do.
She didn't ask any more questions, hung up the phone and started checking Schedule 13D Amendment Filing's wording with Lin Shicheng.
Make sure every word of the sentence "convert to Long-Term Holding Strategy" can stand up to the SEC's line-by-line scrutiny.
At the same time, in the CEO office of Fremont Factory,
Elon Musk is sitting at his desk, with a huge curved screen in front of him
, it scrolls in real time the stock price of Tesla, Trading Volume, order by transaction, and the headlines of major Financial Media.
He read the summary of Era Vanguard's latest Schedule 13D Amendment Filing on Bloomberg Terminal from beginning to end,
Then I picked up my phone and sent a message to Zhao Chen.
He didn't use any social software and sent a text message directly, with only one sentence--
"Thank you for honoring our agreement."
Zhao Chen was bringing the tea cup to his mouth when he saw this message.
His finger paused on the screen for a moment and replied with two words: "Thank you for your trust in me."
Elon Musk's message was soon followed by another one:
"You are the most disciplined shareholder I have ever seen. You are also the one who makes me the most stress-free. Keep it up."
"You are also the most unruly CEO I have ever seen.
But I never wanted to ask you to change it. The rules are used to restrict those of us who make investments.
It's not meant to restrain you from building rockets.
You continue to be unruly and I will continue to be obedient - this is the best division of labor between us."
Elon Musk sent an emoticon like Thumbs-Up, followed by another one:
"By the way, the new factory of Magic City will be put into production by the end of the year. Come when the time comes and I will pay for the ticket."
"I will buy the ticket myself. Just show me the Capacity Ramp-Up curve of Model 3."
This was an extremely brief text message exchange between the two.
No specific terms of the deal were discussed,
It does not involve any future financing plans of Tesla,
There is also no mention of any Board of Directors Seat or voting rights arrangements.
But after Zhao Chen put down the phone, the entire role of Era Vanguard on Tesla,
The conversation has been completely fixed by these two understatements--
It is not an armistice agreement between Hunter and its prey, but the deepest tacit understanding between two people who each stick to the border.
Zhao Chen does not need a commitment letter to constrain his behavior.
He only needs a verbal agreement and a Schedule 13D Amendment Filing that will never be submitted.
In early August, Lin Shicheng submitted Schedule 13D Amendment Filing in EDGAR System,
Officially updated Era Vanguard's latest shareholding on Tesla to 26 million shares, and clearly stated--
"Era Vanguard does not seek to change Tesla Company Control, does not seek Board of Directors Seat, and does not exert influence on the company's daily operations.
This increase in holdings has been completed and will be converted to Long-Term Holding Strategy."
Less than half an hour after the application was submitted, a news alert from Bloomberg popped up with a concise and restrained title--
"Era Vanguard submitted a 13D correction and announced that it would stop increasing its holdings of Tesla and switch to Permanent Strategic Holding".
The text quotes the original words in Lin Shicheng's application, and adds the following comments:
"This is the first time since Era Vanguard opened a position in Tesla at the end of last year that it has clearly announced that it will stop increasing its holdings and convert its position to permanent Strategic Allocation.
This statement is in dramatic contrast to the previous liquidation of the big Short Sellers - Short Sellers is gone, and the bulls are left."
Reuters's follow-up report starts from the perspective of SEC supervision.
Pointing out that Era Vanguard proactively stated in Schedule 13D Amendment Filing that it "does not seek Control" and "does not interfere in business operations",
It is using legal language to send signals to regulators and Tesla management at the same time--
"I am not a barbarian at the door, I am a gardener in the garden."
Chen Xi read the reports of Bloomberg and Reuters, then walked to the door of Zhao Chen's office and said:
"External reviews say we are 'Textbook Long-Term Shareholder Declaration'."
Zhao Chen raised his head from the pile of documents and spoke calmly:
"What they say is their business. We just have to do our part."
He withdrew his gaze and spread out the Green Energy Technology Mass Production Progress Report on the table again--
In July, the passing rate increased by 1.2 percentage points. This is the number that he is most concerned about right now.