Chapter 121 Short Selling Tesla
The next day, Lu Liang came to the company looking haggard, rubbing his waist and yawning from time to time.
The trading room is empty because he gave six traders a half-day off yesterday, asking them to go back to rest during the day, pack the necessary clothes, and come back at five o'clock in the afternoon.
No matter Beijing time or New York time, 24 hours have passed, but so far, Tesla has not announced the sales volume of Edamame X.
The sales volume should be very impressive. It is obviously a good thing, but it is as secretive as the death of an emperor.
This also shows that Lu Liang's judgment is correct, so he has to start taking action.
Time passed by minute by second, and in the blink of an eye, the six traders were back at their posts, preparing for tonight's battle.
At 9:30 p.m., US stocks opened.
China’s new policy promotes the new energy industry. Shanghai has specially allocated 200,000 square meters for Tesla to build a super factory. The sales of Edamame X are encouraging, and all kinds of positive blessings have been given.
Tesla soared 12% at the opening, soaring $21.84. The stock price instantly exceeded 200 yuan, reaching $203.84.
The advantage of not setting a price limit is that as long as there is benefit, it can be released instantly, unlike A shares that rise by ten points a day.
Lu Liang pondered for a moment, and then ordered: "Start selling 1,000-5,000 shares in a single transaction to bring down the stock price."
His margin account has 50 million US dollars, using four times leverage , the acceptable increase is only 18.5 points.
With a capital of 198 million U.S. dollars, the acceptable loss is 35 million. If the loss rate exceeds 70%, it will hit the liquidation line.
Even if he does not operate, as long as the stock price exceeds 215 yuan, his account will be frozen due to insufficient margin.
There is currently only a fault tolerance of $12.16 left,
but the higher the risk, the greater the return.
Assume that they can liquidate 1.098 million shares at $203.84 and cash out $223 million.
When the stock price drops to US$100, they only need to spend US$109 million to repurchase 1.098 million shares, and the US$114 million price difference generated is their income.
Tesla’s market value reached US$19.04 billion after a 12% increase.
Lu Liang holds more than 1% of the chips. Without the major shareholders, he is Tesla's biggest bookmaker.
As they began to ship goods and cash out their chips, the stock price was also pushed down bit by bit.
The upward trend stopped almost instantly, a sharp angle appeared at the end of the thin line, and the K line began to dip downward.
This move immediately caused an uproar in the market.
After all, in the face of so much good news, going short against the trend is simply risking the disapproval of the world.
It also attracted the attention of Wall Street institutions. Tesla rose so fast that they had no time to enter the market and could only watch helplessly.
Suddenly someone went short against the trend and had a very determined attitude. This behavior made them very interested.
It also gave them an idea,
Why is this unknown force going short?
Is there huge bad news that hasn’t been exposed yet?
They can't get good dividends, maybe they can get bad dividends.
Wall Street institutions, like puppies that smell sausage, follow the trail, eager to find out the cause.
"Everyone is pushing against the wall. The 18th is too long, and something will change later. I can't wait any longer."
Lu Liang whispered to himself, the funds he held have the ability to influence the market. The trend and pace should also be bolder.
Because of the new energy index, the predicted highest peak was 2985 points, but the final peak was only 2915 points.
A market of 1.5 trillion yuan only made him 530 million yuan, which is less than 0.01%. The change is so big.
What’s more, after Tesla’s securities lending and financing, Lu Liang holds more than 1% of the chips, and its impact on the market will only be more profound.
As long as he makes money, the future will change.
The more he makes, the more deviations there will be.
Lu Liang simply had to be bold. It was the US stock market anyway, so there was no need to worry about being invited to tea.
So this time, he planned to go in and out quickly, and he would lead the charge without giving Tesla any time to react.
The trading hours of U.S. stocks are from 9:30 in the morning to 4:00 in the afternoon, 6.5 hours a day, with no breaks in between.
Wall Street institutions are still investigating the reasons for short selling. Only Lu Liang’s short selling team is fighting alone in the market. For six and a half hours, everyone including Lu Liang worked intensively, selling a total of 420,000 shares.
Selling at an average price of $201.5 per share, cashing out a total of $84.63 million.
"Yu Tao, Zhang Jing, take them back to rest. Tell Xiao Wen if you need anything."
Lu Liang rubbed his brows and called the two team leaders. This transaction is very important. Before it is over, , no one can leave the company or touch communication equipment.
Before the end, everyone ate, drank and had sex in the trading room. Fortunately, we had considered the possibility of such a situation and set up a living area.
Lu Liang returned to the office next door and took a short rest for a few hours. Then he made an appointment with Meng Changkun and asked him not to reveal his identity and contact domestic and foreign media to spread the news.
“There are three main points. Why hasn’t No. 1 Edamame X announced its sales volume yet?”
"Are you sure it can be delivered smoothly after the second 16 weeks?"
"The delivery of the third Roadster sports car is a big write-up."
They only hold a total of 1.098 million shares. , 420,000 shares were consumed on the first day, leaving only 678,000 shares.
If no reinforcements join in the follow-up, Lu Liang's current chips may not be able to survive the end of the Golden Week.
Once he loses control of the market, he will have no control over the subsequent market direction.
It may fall to $96 as predicted, but it may surge to more than $215 during the period, causing him to liquidate his position.
Because as long as Wall Street institutions understand Lu Liang's intentions, they will probably tacitly agree to it and join forces to defeat him first.
The more Lu Liang earns, the less they earn.
And they are the only ones who go around the world to cut leeks on weekdays, and their hometown is stolen. This is something they cannot tolerate.
So Lu Liang planned to force the palace to build momentum.
Forcing Musk to stand up and respond and give consumers a clear explanation, even if he doesn't respond, can plant a seed of doubt in the hearts of market investors.
Because through last night's transaction, Lu Liang discovered that those who bought were all small traders, and they would only rush without thinking.
Although they are a mob, retail investors will always have the most funds in the market, and whoever they help will win.
Lu Liang does not expect retail investors to charge into the battle for him, but as long as they do nothing, even if they wait and see, his chances of winning will be great.
Meng Changkun understood and hurriedly contacted his friends. After all, he was engaged in the foreign trade industry and had many friends abroad.
After many requests, I finally contacted several car media in France and several Internet celebrities in the UK to raise three questions.
If the news spreads in China first, it would be too much for Sima Zhao, and it would be better to export to domestic sales.
Also, domestic fans are too servile and are particularly good at adapting to find excuses for their masters.
If a song is sung well, those who are favored will always be confident. Various past deeds have also proved that Chinese consumers can ignore it or treat it differently.
But it doesn’t work in foreign countries. There are a lot of litigators. As long as they smell the profit, they are like a swarm of flies. They not only kill people but also stick to them.
As the news began to ferment, Wall Street institutions also became aware of why some people bucked the trend and shorted Tesla yesterday.
Tesla also lost US$180 million last quarter, and a US$465 million loan from the Department of Energy will expire at the end of the year.
Why Tesla dare not announce the sales volume of Edamame X? Now, everything is revealed.
A car requires at least 100,000 U.S. dollars in advance. If it is 10,000 U.S. dollars, it will cost 1 billion U.S. dollars.
Does Tesla have a billion dollars?
Even if there is, does the California factory have this kind of production capacity?
Can you guarantee 16-week delivery?
Will what happened with Roadster happen again?
Several pieces of news have been fermenting abroad all night, and neither Musk nor Tesla came forward to respond directly.
But Lu Liang's pressure has been reduced a lot. They only sold 100,000 shares tonight, bringing the stock price down to US$200.
It shows that people who were originally long no longer dare to go long anymore.
Lu Liang did not take advantage of the victory to pursue the victory, because it was not the final charge yet, so he did not dare to sell all his chips, and at least kept some to face various emergencies.
Musk will definitely take countermeasures.
Only two chapters~
(End of this chapter)