After divorce, I can hear the voice of the future

Chapter 676 If you're going to do it, do it big.

"However, electric vehicles also have advantages that gasoline vehicles do not have, namely, intelligence and strong torque."

Flannery was objective and did not completely denigrate electric vehicles. If they were truly worthless, GM would not have partnered with SkyStar.

Take the Tian Shu's dual-motor all-wheel drive as an example. It can accelerate from 0 to 100 km/h in just 2.81 seconds. If this figure were applied to a gasoline car, it would be equivalent to at least the top-of-the-line GT model, with a market price of at least 2 million yuan.

In contrast, the Tian Shu only costs RMB 29.89. Even with the relatively high cost of labor and materials at the Detroit factory, the total cost of the vehicle is only USD 4.65.

They tentatively set the gross margin at 35%, and barring any unforeseen circumstances, the pre-sale price of the General Motors Tianxing Tianshu should be $6.28.

However, this price is unlikely to be competitive, because the Tesla Model 3, a similar competitor produced at Tesla's Gigafactory in California, is priced at only $5.25.

Lu Liang glanced at Franneri and said softly, "Change the price to below 60,000, even 59,900 is acceptable."

The standard price of the domestically produced Tian Shu is 29.89 yuan, which is the selling price, not the cost price. The cost price will not exceed 23 yuan, which is 3.3 US dollars.

It's true that imported materials and labor are more expensive, but it's impossible for them to increase the cost of each vehicle by $1.35.

Moreover, GM is a century-old automaker. Apart from importing batteries from NED and electronic controls from Tianxing, the motor and other components can be fully localized in the US. The actual cost will definitely not exceed $4.

That old bastard Flannery made at least $7000 off each car in the supply chain, more than he made selling cars. He's inhuman.

Flannery looked troubled: "In this way, the gross profit margin is only 28%, which is very detrimental to subsequent market regulation."

Lu Liang rolled his eyes and said irritably, "The gross profit margin depends on the cost of manufacturing the whole vehicle. If the cost can be reduced, the gross profit margin will increase even if the selling price is lowered."

"The three core components of an electric vehicle are the electric motor, electric control, and electronic control system. Apart from these three components, other first- and second-tier suppliers should be replaced if possible. I simply don't believe that the cost of each vehicle can really be that high."

He paused for a few seconds, then said, "Mr. Flannery, as you know, the launch of Tian Shu in the global market is more symbolic than practical. To put it bluntly, we're not doing this to make money; to be precise, we're not doing it to make money from selling cars."

Even if we sell each car at a loss, so what? We can always make the money back in other markets.

"But if you want to make money in other markets, you have to deliver a satisfactory result to investors, at least one that will satisfy them in the future."

Lu Liang had practically laid everything out in his mind; if Franneri still couldn't understand, then there was something wrong with his head.

Flannery pondered carefully, his eyes growing brighter: "Which organization did you contact, intending to inflate General Star's valuation?"

Lu Liang's statement suggests that General Tianxing may be considering an independent IPO, indicating that he does have this idea.

After all, how much money can you make in manufacturing? If you really want to make money, you have to go to the capital market.

Lu Liang's influence in the capital market is not to say that he can control everything, but it is close enough.

If we then contact a reputable institution to endorse it and solidify its valuation.

It is entirely possible for this company, which has only one factory and has never sold a single car, to list on Nasdaq and achieve a market value of tens of billions of dollars, or even hundreds of billions of dollars.

If Lu Liang is willing to personally step forward, rally support, and challenge Musk, it's not impossible for him to directly confront Tesla.

By then, General Motors' market value will also rise, since General Star won't be listed so soon, while General Motors, as the parent company holding 51% of the shares, will be listed early and will naturally receive feedback from the market.

"Who to contact is not up to me." Lu Liang took a sip of whiskey, frowning deeply; he still couldn't get used to foreign liquor.

He looked out the window at the city lights and said softly, "Who we can contact in the future depends on the success of General Star in the market."

Although Lu Liang contacted JPMorgan Chase, Wilson also said that he would spend a billion dollars to only take a 5% stake and raise the valuation to 200 billion.

But market investors aren't fools; they need at least a track record that convinces them before they'll believe General Star is worth $200 billion, or will be worth $200 billion in the future.

Like Tesla, even though it sold 28.18 units last year, its market value is still not worth hundreds of billions.

Ultimately, it is the year-on-year growth of Tokyo University's new energy market, as well as its Mars colonization, Starlink project, and rocket recovery projects, that have convinced market investors that even if it is not worth hundreds of billions now, it will definitely be worth it in the future.

The market is driven by expectations. It's okay if expectations aren't met now, as long as they are met in the future, there will be people willing to pay the price.

After a long pause, Flannery said, "The selling price is 5.39, with a gross profit margin of no less than 30%. I'll try to find a way to lower the cost price from the supplier."

The Tian Shu is positioned to compete with the Maodou 3, which is priced at $52,500. They cannot be too much more expensive, otherwise they will lose their market competitiveness.

Without hesitation, Flannery accepted the promises Lu Liang made for him, even if it meant earning less or nothing at all.

After all, compared to the returns in the financial market, the small profit margin earned by middlemen is negligible.

Even if a single car rolls off the production line, GM's suppliers at all levels can earn a combined profit of approximately $8000.

Even if it's 10,000 vehicles, that's only 80 million; even if it's 100,000 vehicles, it's only 800 million. 800 million USD in revenue seems like a lot, but it still doesn't compare to a 0.5% increase in General Motors' stock price.

On the other hand, if this project succeeds, even if GM's market capitalization is $160 billion, its stock price is guaranteed to rise by at least 10% or even 20%, resulting in a profit of $1600 billion or even $320 billion.

Lu Liang asked with a smile, "Wouldn't this put Mr. Flannery in a difficult position?"

Flannery declared righteously, "This is the first time Tian Shu has appeared on the North American market, and GM should go all out to support it."

Lu Liang couldn't help but chuckle, then paused and said, "Tell me your plans; maybe they'll match my schedule."

Flannery was surprised, his eyes gleaming with delight: "You're going to attend the North American market launch?"

"I'll go as long as the schedule works out," Lu Liang said with a smile.

"That will definitely match up. The press conference will be held whenever you have time."

The Tian Shu was first launched two months ago, and all its data has already been tested and analyzed repeatedly. There's really nothing to talk about at the North American market launch event.

It's simply announcing the launch of the US version of the Tian Shu. People who like this car no longer need to hope for imports or be subject to high tariffs, but that's all.

If Lu Liang could personally step forward, that would be different, after all, he is hailed as one of the three strongest post-85s generation on earth.

Moreover, he is the only one who, without relying on his father, relied solely on himself to break through the capital encirclement of Wall Street, fighting against three or eight opponents single-handedly, and repeatedly turning the tide against all odds. He earned his formidable reputation through hard work and is known as the "financial butcher."

The North American market idolizes individual heroism the most; otherwise, Marvel and CD movies wouldn't be so popular.

Moreover, his repeated beatings of Wall Street capital institutions are something that people are happy to see, and can be said to be the dream of every ordinary person who has suffered from the harm of capital.

When dreams become reality
They will also extend their affection to everything connected to the house.

Musk's Starlink project, Mars colonization, and rocket recovery are just talk, but Lu Liang actually made them a reality.

The fact that Twitter, which I haven't logged into for nearly three years, has seen its more than 20 million followers from around the world increase rather than decrease is the best proof of this.

If Lu Liang were to step in, even Tianxing Motors, which is slightly inferior to Tesla in algorithms and technology, might be able to compete with it.

"I'll be going to America with you tomorrow. We expect to stay in New York for three days, and we'll try to schedule the press conference within those three days."

Lu Liang chuckled, a hint of worry flashing in his eyes. He had no choice but to agree to attend the press conference.

The fact that the Tian Shu was able to outperform the Maodou 3 in China largely depends on playing on home turf, while the domestically produced Tesla is still a stripped-down version.

Once they go abroad, they will face a fully-fledged Tesla, and it will be an away game for them.

If we don't take some measures, we might get hung up and beaten.

Sales need to be at least decent, otherwise they will disappoint domestic fans and be ridiculed by rival brands for only being good at dealing with their own country.

"No problem, I'll arrange the time."

Flannery was extremely excited and, in front of Lu Liang, made a phone call to the group's marketing president.

He booked the Superdome, also known as the world's largest indoor stadium.

The Super Bowl venue in the United States is equivalent to the Bird's Nest stadium at East Lake University, with a capacity of over 70,000 people.

Lu Liang was speechless: "More than 70,000 people?"

If it's not even full, not even one-tenth full, that would be ridiculous.

"Lu, are you questioning the strength of General Motors as a 110-year-old automaker?"

Flannery looked proud. GM is the title sponsor of major races such as the American Rally Championship, the European Rally Championship, the British Rally Championship, the Australian Rally Championship, and the Asian Rally Championship, and is also an invited team for the Formula 1 Championship.

When the time comes, we'll just take a few convoys for a race and hire some top Hollywood stars to sing and dance with us.

The venue only has a capacity of 70,000 people.
He was certain that the venue would be packed.

Flannery will have the world's front page headlines the day after tomorrow, all about the release of the American version of Tian Shu and the news of Lu Liang's personal presence.

After all, this was Lu Liang's first time attending an international press conference, and it would be a disservice to his debut if it wasn't a big deal.

(End of this chapter)