America's Road to Fame

Chapter 396 Increasing Holdings of Tesla

After hearing these suggestions from Hastings, William Chen had other considerations, because what Hastings suggested was carried out from his perspective, that is, within the scope of Netflix.

But William Chen has a different perspective. What he thinks of is how to make changes in the structure of the entire Meta Group based on the situation that Hastings said, so as to prevent each subsidiary from just sweeping the door, regardless of others. .

This conflict of interests between Netflix and its [-]th Century MGM Pictures is not an exception, because although the Meta Group is no longer under the name of William Chen and belongs to the Caitlin Foundation, it still Under Chen William's control.Then the executives of the Meta Group, even if they use the company's performance commission to motivate them, but this method is not without omissions.

Just like when faced with the choice between short-term interests and long-term interests of an enterprise, if you are the owner of the enterprise, you will definitely choose long-term interests, even if you suffer some losses in the short term and affect performance, you will not hesitate .

And what if he is the manager of the business, not the owner?If their income is linked to the company's performance, then they don't want to know that when they face this choice, they will definitely only choose short-term interests rather than long-term interests.

Because they don't know how long they can stay in the position of managers, so compared with the long-term interests of the company, they should first improve the short-term interests in order to obtain higher performance commissions. As for the long-term situation, they will not know at that time Why do I have to think so much about whether I am still in this position?
Therefore, in response to this situation, William Chen believes that it is time to gradually make some adjustments to the interests of the management in the entire Meta Group.

Although he is here now, he can detect the wrong decisions of the management in the group in a timely manner and make targeted adjustments, but it is impossible for him to focus on this all the time. There are more things to do, so from In terms of system and interests, it is very necessary to ensure that whether the management can consider the long-term interests of the enterprise more or the subsidiaries can give priority to the overall interests of the group, these can be ensured and implemented.

Of course, the adjustment of the entire group involves the whole body. It is not that simple and requires more consideration.

So now let’s start from Netflix, make tentative adjustments first, and check the effect, as the accumulated experience of the entire Meta Group’s adjustments in the future, it is also good.

……

Tesla has completed its IPO in the middle of last month. In this IPO, Tesla publicly issued 1330 million common shares, accounting for 10% of the total share capital after the issuance, and the stock issue price was US$17. Per share, at this price, Tesla's total market capitalization is $22.6 billion.

William Chen originally held 4967.55 million Tesla shares, accounting for 37.35% of the company's shares after the IPO; during Tesla's IPO, because the underwriters were Goldman Sachs and Citibank, Meta Investment Company subscribed for the general public offering 1330 million shares out of the 500 million shares of the stock—in fact, Tesla’s IPO this time is not very hot, and without the participation of Meta Investment Company, their stock issue price would be even lower.

Therefore, Meta Investment currently holds a total of 5467.55 million shares of Tesla, accounting for 41.1% of the company's total share capital, surpassing Musk in one fell swoop and becoming Tesla's largest shareholder.

However, Musk still firmly controls the management rights of Tesla, because before Tesla’s IPO, it has been approved by the board of directors. Tesla has implemented an AB equity structure. Will have 10 times the voting power of ordinary shares.

Therefore, no matter how many other people hold shares, they can only have dividend rights and gain benefits from stock price growth without affecting Musk's control of Tesla. The reason why the 1.5 million US dollars of preferred shares were converted into common shares, and he was also able to rest assured that Chen William would increase his holdings in the secondary market.

Anyway, William Chen's main purpose of investing in Tesla was to make financial investment on the basis of gaining a certain right to speak.

Therefore, he will not always hold in his hands the subsequent increase in stock holdings. When Tesla's stock price reaches a certain level, he will start to reduce his holdings.

From the very beginning, including Musk, they realized that now is not the best time for Tesla to go public, but Tesla is very hungry for funds, whether it is support funds from the government or no Interest loans, he has tried all these methods to relieve the hunger for funds, and the only thing left is financing.

The key is that under the background of the current economic situation is not good, and Tesla itself has only launched the original electric sports car Roadster, and the sales volume is not high; and the new electric sedan "Model S" will not be delivered until the end of the year , because their previous production was limited, and even whether the car could be delivered on time has been questioned. Therefore, at this time, there are not many institutions willing to participate in the financing and able to give a suitable valuation.

If he continues to accept William Chen's financing, although it seems that he is not very interested in Tesla's operating power, his shareholding is about to surpass Musk. To be on the safe side, Musk has no choice but to IPO financing.

Because even after the IPO and after, Chen William can still increase his holdings of Tesla's stock, but the most important thing is that through the IPO, Musk can establish the shareholding structure of Tesla's AB shares. With the right structure, Musk will be able to firmly hold the control of Tesla in the fact that his holdings are surpassed by William Chen, or even enlarged. This is why Tesla chose to conduct an IPO at this time. one of the main reasons.

On the first day of listing, Tesla shares, which were issued at a price of US$17, closed at US$23.89, an increase of 41%, which also means that Tesla’s market value has reached US$31.7 billion.

However, although the initial debut was good, Tesla's stock fell below the issue price of $17 within a week. Negative news has been reported many times in the past, which is also the main reason.

However, the decline in Tesla stock did not last long, because someone discovered that in the Nasdaq market, some institutions continued to absorb Tesla stock at low prices quietly, and the main force among them was Caitlin fund.

Before Amazon announced that it would acquire 40% of Groupon’s shares and would cooperate with the group-buying giant in the future, and did not rule out the overall acquisition, Amazon’s stock rose sharply. After all, the concept of group-buying at this time is very popular. when.

The current Kettering Fund is a fund formed by the merger of the original Kettering Foundation funds and the free funds of Meta Investment Company. At that time, the investment capital exceeded 200 billion U.S. dollars, and the total market value of the stocks currently held has exceeded 500 billion. Dollar.

Among the stocks they hold, there is a certain proportion of Amazon’s stock, so at this time, they took the opportunity to sell part of Amazon’s stock at a high price, and then bought a total of 300 million Tesla shares before and after the NASDAQ market. , This also allowed the Kettering Foundation (including Meta Investment Company) to hold Tesla shares to 5767.55 million shares, accounting for 43.4% of the total share capital.

However, this part of Tesla shares held by Caitlin Fund is still a financial investment, and it will start to reduce its holdings after Tesla's stock price reaches a relatively high position.

(End of this chapter)