My Age of Investment

Straubel's contacts with other Tesla shareholders went smoothly. Everyone recognized Tesla's pre-money valuation of US$450 million and expressed their willingness to invest.

Xia Jingxing was not too surprised by the "enthusiastic" response from shareholders.

After all, the peaches look almost ripe, and adding a little more fertilizer will yield more fruit.

However, no institution has jumped out to compete with Vision Capital for the right to lead the investment, and its performance is conservative.

After some negotiations, this round of E+ financing of US$50 million was led by Vision Capital, which invested US$40 million, and four institutions including Value Equity Capital, DFJ, Waterfall Investment, and Bezos Venture Capital invested US$2.5 million each. .

Needless to say, Value Equity Capital and DFJ have both invested in Tesla for two or more rounds. The amount of investment in Tesla is second only to Vision Capital, although both institutions have invested in Tesla at different stages. I lost confidence in La's development, but soon came back to eat the grass.

However, Xia Jingxing was quite surprised by the performance of the funds owned by Gates and Bezos. In the past, the two funds had been playing tricks on each other, and this time they have unusually begun to increase their stake in Tesla.

Xia Jingxing guessed that maybe Gates and Bezos had driven their respective Roadster Founders Series and felt very good about it, so they decided to invest more; or maybe they wanted to cooperate with him in depth and show their goodwill to him. After all, he now has the With resources that both Gates and Bezos want, relationships still need to be maintained.

Two small funds, SDL and Compass, which have not participated in investment in the past, also wanted to participate in this round of financing, but unfortunately, the parking spaces are limited. It doesn't matter that the two institutions, which have no background and a high shareholding ratio, cannot get on the car and are excluded from the financing. off the list.

After completing this round of financing, Xia Jingxing’s personal shareholding ratio in Tesla has dropped to just 16%, while Vision Capital’s shareholding ratio has increased to 48.52%, adding up to a total of 64.52%. These equity or fund shares All belong to Xia Jingxing alone.

The shareholding ratios of the two original founders Eberhard and Tarpenning were diluted to 5.24% and 2.39% respectively, which no longer poses any threat to Tesla's control.

If there is an opportunity in the future, Xia Jingxing also plans to take over the Tesla shares held by the two of them, hold them for a few years, and then sell them to American dignitaries at a higher price.

The parties had just negotiated the investment details and were about to sign the agreement when Xia Jingxing suddenly received an urgent call.

Without waiting for the formal signing, Xia Jingxing entrusted all the follow-up matters to Rich, and then he hurriedly left Silicon Valley on a private plane and headed for New York.

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“Just today, Bear Stearns and JP Morgan signed an acquisition agreement without any warning!

Moreover, JP Morgan’s bid was only US$2 per share, and it only cost US$236 million in total to acquire the fifth-largest investment bank on Wall Street with an 85-year history.

You know, the market value of Bear Stearns’ 45-story building alone has reached US$1.2 billion..."

In the conference room at No. 85 Wall Street in New York, Liu Hai told Xia Jingxing the biggest financial news of the day - JP Morgan's acquisition of Bear Stearns. His joy was beyond words.

Xia Jingxing listened quietly, nodding his head from time to time.

But I was muttering in my heart, Bear Stearns is really a "dark light in the industry". Last year, the collapse of two of its hedge funds kicked off the subprime mortgage crisis. Today, its selling out marks the beginning of the subprime mortgage crisis. A whole new climax.

So, as soon as he received the news today, he flew urgently from Silicon Valley to New York to collect the body for Bear Stearns.

Jiang Ping answered with a smile: "It can't be said that there are no signs! Bear Stearns CEO Schwartz just gave a speech on the US CNBC television station four days ago to reassure investors, saying that the company currently has sufficient liquidity and expects The company will be profitable in the first fiscal quarter.

However, just two days later, the CEO could not resist the pressure and asked the Federal Reserve for help, saying that he had encountered a major liquidity crisis and that the company's cash position had deteriorated sharply in the past 24 hours.

The Federal Reserve was very effective this time and responded to Bear Stearns' call for help that day.

According to insiders, JP Morgan initially did not want to take over this mess. It was the Federal Reserve that acted with emotion and reason, and of course, the most important thing was to provide a $30 billion backstop loan. This convinced JP Morgan to Bear Stearns provides emergency financing.

The total time from the provision of emergency financing to the announcement of the acquisition plan today is no more than 72 hours. On Wall Street, this can be regarded as a lightning-fast merger and acquisition transaction, and the urgency is evident. "

Xia Jingxing nodded lightly. He had fully understood the whole story on the way here.

Bear Stearns died a bit unjustly this time!

Since last week, the US stock market has begun to circulate news that Bear Stearns may have a liquidity crisis.

In the days that followed, more and more lenders and customers began withdrawing their money from Bear Stearns.

It was like a bank run. A large amount of cash disappeared from Bear's account, and it was about to default and go bankrupt.

At this critical moment, CEO Schwartz, who had just taken office two months ago, had no choice but to step forward and go on TV to release various good news, hoping that everyone would trust Bear Stearns again.

But American leeks have been severely cut off. They are far less easy to fool than Chinese leeks. Wall Street capitalists always listen to what they say.

Therefore, unfortunately, Bear Stearns' liquidity crisis has become more serious. Countless hedge funds and asset management companies that trade through Bear Stearns have accelerated their escape and withdrawn all their cash, because they are afraid that the bankruptcy of Bear Stearns will lead to the loss of their customers. The money was frozen altogether.

Therefore, Bear Stearns can be understood as a victim of market rumors, but flies don't bite seamless eggs, so why do they spread rumors about it? Because the loss is too much!

There is also a bill issue involved. Why doesn't the Federal Reserve directly rescue Bear Stearns?

This is because Bear Stearns is actually a large securities brokerage company and cannot obtain funds through the Federal Reserve's discount window, so it must use a commercial bank as an intermediary, so JP Morgan was selected by the Federal Reserve as a commercial bank.

This is equivalent to JP Morgan taking the loan provided by the Federal Reserve and first giving Bear Stearns a short-term bridge loan to let this street boy survive for a few days. Don't hang up, I will rescue (acquire) you right away.

The acquisition price was only over US$200 million, but the Federal Reserve provided credit support of up to US$30 billion. This was because Bear Stearns had too many toxic assets and might actually have become negative assets.

The reason why it is possible is because JP Morgan did not have time to conduct due diligence and was confused by the Federal Reserve to put it on the market.

JP Morgan was also afraid of buying back a hot potato with actual assets of more than US$20 billion for more than US$200 million, so he asked the Federal Reserve for a guarantee of a US$30 billion loan, and he would not be responsible for any subsequent problems.

"I would say that the Fed should not have bailed out Bear Stearns. This broke the rules. This is the first time the Fed has issued loans in this way since the Great Depression in the 1930s."

Abel said sarcastically, "If Goldman Sachs, Lehman and other financial institutions encounter a liquidity crisis, will they have to be rescued one by one? Can they be rescued? That guy Bernanke should have gone back." Go to school to teach! It’s a mistake for the country and the people!”

Xia Jingxing glanced at the indignant Abel. Regardless of this guy's plausive words, he was actually complaining about the Federal Reserve blocking the company's financial path and blocking his own.

“If Bear Stearns is not rescued, the spread of subprime mortgage risks will be even more exaggerated, and the market will be even more panicked. By then, Bear Stearns will not be the only one who will fail!

Do you see how much the Dow Jones Industrial Average dropped today? It dropped by nearly 195 points. "

Jiang Ping shook his head and said, "The Fed has its own reasons for taking action, but there is indeed a problem with JP Morgan's offer.

After the announcement of the acquisition today, Bear Stearns' stock price fell 53%, the highest drop in history, and finally closed at $34.38.

Even so, the current market value of Bear Stearns is 17 times different from JP Morgan's acquisition offer.

Does Bear Stearns really have that many toxic assets? Have most of the risks been cleared? Have most of the asset impairments been revealed? "

"Don't worry about it so much!"

Liu Hai glanced at the dark sky outside the window and said fiercely: "When the market opens tomorrow, Bear Stearns will definitely plummet!"

Xia Jingxing said in a deep voice: "Start closing your position tomorrow, close it quickly! Don't worry about a small profit."

Liu Hai was a little confused, but he quickly responded, "Are you worried that JP Morgan may adjust the acquisition plan?"

"This is just one aspect. Tomorrow should be when the market is most panicked. There will be large-scale selling, and it is also a good time for us to close our positions.

But looking at it on the other hand, Bear Stearns has found a successor, and the risk has actually been cleared! It’s over!

What are we still doing holding a short position? Is it possible to expect Bear Stearns to drag JP Morgan to death and have a double kill?

Get your bag as soon as possible and find new hunting targets! "