Chapter 255 Investing in Tesla_2
Link spread his hands and spoke about the advantages of electric cars.
From a technological development perspective, the replacement of petrol cars with electric cars is an inevitable product of social advancement.
According to the futurist Toffler in "The Third Wave," the third wave is the stage of the information technology revolution. In this phase, social development is primarily marked by the invention and application of electronic computers, which is to say, the age of the internet.
The industries that are more closely integrated with network intelligence develop more rapidly, such as electric cars, artificial intelligence, GPT, OpenAI, etc., all of which are products of the third wave and unstoppable.
"Link, what you're saying is all speculation and doesn't match the market development trends. Also, you probably don't understand Elon Musk. He is an idealist who has repeatedly gone to Chinatown to pitch his Mars colonization plans, spaceship projects, and electric car plans. Everyone thought he was crazy, and not a single investment company was willing to invest in him."
Furthermore, Elon Musk's SpaceX company hasn't been able to produce rockets up to this point, and Tesla's production of electric cars is fraught with many problems. I don't think this is a suitable investment project."
Cathy Wood turned on her computer and pulled up Tesla's revenue from last year. The fiscal deficit was a staggering 520 million US dollars, and its market capitalization was merely 800 million US dollars, almost on the brink of bankruptcy.
Therefore, Tesla is not a good investment project.
Link looked at the data and found that Tesla's situation was even worse than reported by the media.
"Cathy, I know Elon Musk's ideals are a bit too advanced, and I'm aware of Tesla's poor situation, but what I admire is Musk's philosophy and direction.
He is leading the times rather than simply copying others' creativity. He's a venturesome explorer, and even if he fails, it's still a valuable attempt."
"If I were poor, all I could do is applaud him. Now that I have a substantial amount of capital, I'm willing to put it out there and do something meaningful.
But if he succeeds, Cathy, do you know what that means?"
Link stared intently into Cathy's beautiful eyes and smiled, "I will become richer, and you will become richer. So why not take a risk?"
Cathy didn't meet his gaze, looking down at her tablet screen, feeling somewhat helpless.
She had known Link for over a year, and although they didn't see each other often, about five or six times, they contacted each other weekly by phone or video.
When she initially became the manager of Link's assets, she was very excited. Being the housekeeper for a handsome man beat working for greasy men and seventy or eighty-year-old men and women by far. She could earn money and feast her eyes.
Her female colleagues in the same field were very envious of her.
Additionally, Link's vision for investments was very similar to hers.
During their first conversation in 2008, Link mentioned that he was optimistic about the development of Amazon and believed that Amazon's stock would surge after the financial crisis, as would other tech stocks.
This aligned perfectly with her views, as she was also very bullish on Amazon and other internet tech stocks.
As a result, their first investment went very smoothly.
The second time was in June, when Link called and said he was planning to acquire a portion of Twitter's shares.
At that time, Facebook was the leading social stock, while MySpace, YouTube, MSN, and other stocks also had significant potential.
Compared to these, Twitter's stock didn't seem especially noteworthy, and if it mismanaged its competition against other social media platforms, the investment could be a total washout.
Nonetheless, it was Link's proposition.
She didn't immediately object. After a thorough investigation and analysis, she discovered that Twitter's management was sound and its leadership capable.
Under their direction, the number of Twitter users increased steadily, especially after celebrities like Link registered on Twitter, significantly accelerating user growth.
Investing in Twitter had its risks but also potential rewards.
She personally met with two of Twitter's founders, Jack Dorsey and Evan Williams, talked with them, proposed a stake, and mentioned the benefits of having a celebrity shareholder like Link.
After several negotiations, she acquired a 10.4% stake in Twitter for 65 million US dollars.
This was the biggest deal she'd ever done since she entered the profession, at the time she was almost nervous to death.
Afterwards, she frequently had nightmares, dreaming that Twitter went bankrupt and closed down, that Link's investments were washed away, and even that Link pointed at her nose in the dream and scolded her for being useless, causing him to lose money.
That period was lived in extreme anxiety.
But just three months later, Twitter's user numbers increased to 80 million, and Twitter began its second round of financing, pushing its market value up to 1 billion US dollars.
Within just three months, the value of Link's Twitter shares grew by more than 30%, earning him over 10 million in value.
And she, because of this transaction, earned over a million in commissions, became a millionaire, and even received the company's commendation, rising from a small-time manager to a senior asset manager, with her own office in the company.
She felt incredibly lucky, feeling as if Link was her lucky star, with good things happening non-stop since meeting him.
Thus she turned down the company's suggestion to manage other clients, focusing solely on managing Link's account.
In the past two months, she used the company's informational channels to increase Link's account by over 10 million through multiple small investments, and her own account increased by nearly a million in commissions. Read exclusive content at My Virtual Library Empire
She felt that she was getting better and better, work was becoming more and more smooth, and perhaps it wouldn't be long before she could become a multimillionaire.
The future was bright.
But then,
Link said he wanted to invest in Tesla, a project with no potential and on the brink of bankruptcy.
Cathy didn't know how to persuade Link.
Although Link wasn't very familiar with the specifics of financial investment, his foresight was quite good, and he was also very stubborn; once he set his mind on a project, it was like a train with a failed brake system, charging ahead without looking back.
What should she do?
If she had known Elon Musk lived next door to Link, she would have advised Link to move away earlier to avoid being deceived by this big swindler, Elon Musk.
But it was all too late now.
Clang!
Link tapped the edge of his cup with his coffee spoon, watching the manager named Cathy whose face kept changing colors.
"Is it so difficult to sell a popular stock and switch to a portion of less popular stocks?"
Cathy looked up at him, blinking her moss-green eyes.
"Buying Tesla shares is easy, it can be done in two or three days, but Tesla's operational state is very bad. The funds spent on their battery pack research project reach hundreds of millions of dollars per year. They haven't succeeded for three or four years, leading to original shareholders backing out en masse. If we invest, there's a very high chance of losing everything. Knowing this, would you still invest?"
"Yes!"
Link said with conviction.
Cathy furrowed her brows, her lower lip curling up slightly in a helpless expression as she looked at him.
Link chuckled lightly, "Cathy, there's something you need to understand. I'm a boxer, making money is very easy for me. The 48 million I'm using to invest in Tesla can be earned back in just a few minutes, so you don't have to worry about losing the investment. Go ahead with the investment boldly, leave everything to me."
"Alright, but don't blame me if we lose. I'm your asset manager, I can only make suggestions, not decisions for you."
Cathy said with a serious expression.
"Of course!"
Link smiled softly, clinking his coffee cup with hers.