pjbooks Chapter 98: Investment
Chapter 98: Investment
Seeing that Jason didn't refuse, Charlie's heart skipped a beat.
"Boss, we can't vote, we absolutely can't vote!"
"On Wall Street, Musk's name is almost synonymous with fraud; investing in him would mean losing everything."
"This isn't investing, it's gambling!"
Charlie's anxious persuasion drew a sidelong glance from Dolino, who had been following closely behind.
Jason patted Charlie on the shoulder, who was jumping up and down in a panic, and said slowly, "Charlie, be fearful when others are greedy, and greedy when others are fearful. I'm investing in Musk's future."
If we can't add flowers to brocade, then we'll offer charcoal in the snow!
In his previous life, he had read many bloggers' explanations of Musk, so he was fairly familiar with this globally renowned billionaire.
The failure of the first launch of Rocket One in 2006, coupled with numerous problems at Tesla and unresolved mass production issues, meant that both companies were constantly on the verge of bankruptcy.
Among Facebook, Tesla, and SpaceX, many people would undoubtedly choose the former, given the ridiculously high risks of the latter two!
Counterintuitive and contrary to consensus!
Jason, in other words, anyone with only ten million US dollars wouldn't go all in with a single bet.
Hearing Jason's words, Charlie stubbornly insisted, "Boss, I still stand by my opinion. Musk is just a big talker."
Jason shrugged and didn't argue.
After all, who could have imagined that Musk, who was facing such difficulties at that time, would become an idol for so many people more than a decade later?
Seeing that Jason wouldn't listen to his advice, Charlie shook his head helplessly, ordered a plane ticket as Jason instructed, and then headed straight for San Carlos.
In the workshop, a young-looking Musk was discussing something with a group of engineers.
As his money dwindled and the various problems with the mass-produced car remained unresolved, he became increasingly anxious.
Upon returning to his small office, which also serves as his residence, Musk closed the door and began to scrunch his hair.
In front of everyone, he appears confident and strong, but when alone, he is also the one who struggles to breathe under pressure.
Outside the room, the assistant knocked on the door and asked, "Boss, are you in? An investor has come to see you, would you like to meet him?"
The room door was suddenly opened, startling the assistant.
Musk's eyes widened in surprise as he asked, "What did you say? Investors? Where are they?"
The assistant quickly replied, "They're at the door."
"Come on, take me to see them," Musk urged, walking quickly toward the factory gate.
They were almost out of money and supplies, and now investors have come knocking on their door. It's like a person dying of thirst in the desert finding water; they must hold on tight.
Standing at the factory gate, looking at Tesla that resembled a factory warehouse rather than a company, Charlie couldn't help but try to persuade Jason to change his mind again.
"Boss, this doesn't seem like a normal company at all. As far as I know, they haven't even solved the problem of producing their first mass-produced car. Should you reconsider?"
Jason, on the other hand, watched with great interest. It was the first time he had ever seen something like this in person, so he couldn't help but feel a bit curious.
During this period, Tesla was struggling with supply chain issues and the mass production of its first vehicle. It was in this factory that Tesla completed a do-or-die battle and turned the tide.
Unlike the clean, tidy, automated, and intelligent factory in its previous life, this factory now appears somewhat dilapidated.
"Boss, they're here," Dolino's voice interrupted Jason's thoughts and stopped Charlie's attempts to persuade him.
Musk arrived at the door, first shooing away Dolino, who had the air of a bodyguard, and then Charlie, who had a furrowed brow, before extending his hand to Jason and saying, "Hello, I'm Musk."
Looking at Musk's somewhat youthful face, Jason extended his hand and said, "Hello, I'm Jason."
"Come in, let's discuss this in detail," Musk gestured, leading Jason and his group into the factory.
Inside the factory, engineers were engaged in a lively yet tense discussion surrounding the prototype vehicle.
Looking at the prototype car on the production line, Jason asked curiously, "When will it go into mass production? I've decided to buy one."
Musk looked slightly embarrassed. "There are still some engineering issues to resolve, but they're not major problems and we'll be able to handle mass production issues soon."
Charlie, who was standing to the side, smiled but didn't say anything.
Jason's lips curled into a smile as he looked at Musk's embarrassed expression.
He never expected to see Musk like this, but that smile made Musk's heart pound nervously.
"Let's find a quiet place and talk about investments," Jason suggested, changing the subject.
"No problem, this way please."
Musk led the way, while Jason kept looking around the factory from behind.
After everyone was seated in the room, Jason spoke directly, saying, "Musk, I'll be frank, I want to invest in Tesla. I wonder how many shares you can offer me?"
Upon hearing the word "investment," Musk immediately perked up and asked, "How much do you want to invest?"
Although it doesn't quite conform to the investment process and there's not much formality involved, this is the most comfortable way for Musk to do things.
Jason said meaningfully, "Not much, ten million US dollars. After all, you know the situation with Tesla."
Musk is not yet at the point of choosing investors; with his funds dwindling, he can only grasp at any straw in front of him.
The fact that Jason and his group have been in there for so long without being questioned about their identities is a clear indication of this.
Moreover, Musk is well aware that his reputation in the capital markets is generally not very good.
Musk paused for a moment, then said, "We plan to launch our Series C funding round this May, raising $50 million USD, bringing the post-money valuation to $1.75 million USD. I can give you 5.71% of the shares."
Jason didn't speak, but turned his gaze to Charlie.
This move put Musk on edge.
"Mr. Musk, it's very unfair to us that you're calculating based on the valuation after the Series C funding round."
"First of all, there's the issue of mass production of vehicles, which you haven't resolved yet."
"Secondly, there's the supply chain issue, which I think you're quite clear about."
"Electric vehicles are not the mainstream nowadays. You have to admit that their charging and range issues are problems that need to be overcome."
"And, most importantly..."
"Mr. Musk, how many people are still investing in Tesla now?"
Charlie shared all his information about Tesla, since news about Tesla is quite widespread on Wall Street.
Musk's face darkened instantly, and he stared at Charlie with an unfriendly expression.
Charlie, seemingly oblivious, continued, "So, for ten million US dollars, I suggest calculating based on the Series B funding round; 7% is a good option."
"Impossible!" Musk refused outright. "That's too low. If you're going to use a Series B valuation, then there's no point in discussing this!"
He may be short of money, but that doesn't mean anyone can take advantage of him.
"Mr. Musk, you need to consider the practicalities. Investors are looking for returns, and we also bear enormous risks."
"Impossible! Ten million US dollars is something I can easily afford. The conditions you're offering are simply unrealistic!"
"No, the car hasn't been mass-produced, the supply chain isn't operational, there are charging issues, range issues, and so on. You should see reality clearly."
"Absolutely impossible, don't even think about it."
······
The two engaged in a heated discussion, their emotions growing increasingly intense, while Jason remained silent on the side.
Jason was already overjoyed when Musk mentioned the shares, but why not fight for a higher share if he could?
Charlie argued his case forcefully, but Musk refused to budge an inch, and the two seemed to be locked in a stalemate.
Jason could tell that although Musk kept emphasizing that there was no need to talk anymore, he hadn't actually asked them to leave. Clearly, they hadn't reached his bottom line yet.
To prevent any unforeseen complications, Jason tapped on the table to stop the two of them.
"Mr. Musk, regarding the 6% stake, we are only pursuing a financial investment and will sign a consensus investor agreement with you. We will not interfere with any of your decisions."
"If that still doesn't work, then let's pretend we were never here today."
Charlie, who was standing to the side, was getting a little anxious, but Jason stopped him before he could say anything.
Musk also stood up, his previously angry face now beaming with smiles, and extended his hand to Jason, saying, "Mr. Jason, it's a pleasure doing business with you!"
Jason was taken aback by the sudden change in his expression, and couldn't help but think to himself, "Sure enough, the faces of capitalists are all illusions."
"It's a pleasure working with you, Mr. Musk."
The two shook hands, and the cooperation was thus agreed upon. The rest was up to Charlie to discuss in detail.
Jason was more interested in the Tesla factory than in the negotiations, and he brought Dolino to the factory.
"How is it? Isn't it beautiful?" Musk, who had arrived at some point, said with a smile as he looked at the young man observing from not far from the car.
Jason nodded, looking very serious, and said, "It will be a global phenomenon in the future."
Musk looked both surprised and bewildered by what the young investor in front of him said.
Despite his confident demeanor, he is well aware of the doubts and criticisms from the outside world.
After giving Jason a once-over, Musk chuckled and said, "I'll send you one once it's in mass production."
Becoming a global sensation is still too far off for him; what's on his mind is how to keep it alive.
He wasn't sure if it was just his imagination, but he felt that the young man in front of him had more confidence than he, the founder.
"How about I give you a suggestion?" Jason's words caused Musk's expression to change slightly.
He hates anyone who interferes in the company, not even investors!
"Don't get me wrong," Jason explained, noticing the change in Musk's expression. "I'm not interfering with the company. I'm just making a suggestion. Whether you listen to it or not is none of my business."
Musk's expression softened slightly. "You said..."
Jason's eyes were deep as he said, "Eastern, if Tesla is going to invest in building a factory in the future, it might be worth looking at China. After all, the wages for workers there aren't too high, and the supply chain is relatively complete."
Musk's expression turned strange at the young man's words.
While he was still figuring out how to overcome the difficulties he was facing, this young man had already come up with the idea of investing in building a factory. He had no idea where this young man got his confidence from.
"Jason, how old are you this year?" Musk asked curiously.
"Eighteen, oh, it should be nineteen, it's already 06 this year," Jason suddenly realized, he had grown another year older.
Musk thought to himself, "No wonder, young people really have big ambitions."
Looking at Jason's youthful face, Musk suddenly felt old.
The process of communicating the terms, having the lawyer review them, and finally signing and making the payment took two days.