The American Kill Line: I Can Predict the Future
Chapter 39 Tesla goes public, what happened to the promised market support?
At 9:30 a.m., Elon Musk and his team began a new chapter in their careers in Times Square.
From this moment on, he will no longer be an ordinary tech company boss.
He is, however, the head of a genuine listed company.
No one could have predicted that, years later, this once-unpromising tech company would become one of the few trillion-dollar giants in the United States.
And this process only took ten years!
Ron didn't quite understand what had happened in the past ten years that had caused such a huge change in Tesla.
As he gained a better understanding of the industry, his horizons broadened.
He understood a little.
It's possible that, as Musk has said, new energy vehicles will become the future trend.
Ron spent the entire morning in Times Square, waiting for Tesla cars to go on sale.
Tesla officially began trading shortly before 11:30 a.m.
The opening price was $19.
In less than 40 minutes, 840 million shares were traded.
The trading volume far exceeded the 1330 million shares issued in the IPO.
Ron subscribed for $1000 million and ultimately received an allocation of $500 million at $17 per share.
The stock price has now risen to $24, a 40% increase, turning $500 million into $700 million.
The entire trading hall erupted in cheers. Elon, staring at the constantly changing numbers on the screen, was also flushed with excitement, just like his team.
But few people saw the worry in his eyes.
Trading volume is too high, and stock prices are soaring too fast.
It's obvious that the underwriters and IPO investors colluded to drive up the price, preparing to cash out and leave at the peak.
With the market so hot, only a fool wouldn't make money.
Ron may have agreed to help Musk protect his stock, but that doesn't mean he won't make money.
So he gave his assistant Thomas a wink, signaling him to inform Victor to quickly and secretly cash out at a high price.
Earning an extra two million is equivalent to buying yourself another top-of-the-line luxury car.
It was at this moment that Musk cast an expectant glance his way.
Ron gave him a reassuring look, feigning reassurance.
On July 1, banks repaid all loans as scheduled, while nearly 200 banks borrowed 242 billion euros in short-term funds.
Although bank stocks continued to fall, liquidity concerns began to gradually subside, and the three major US stock indexes stopped falling and rebounded.
As the market gradually stabilized, Ron stared at the newly renovated control room screen and issued commands to Victor in the trading room via microphone:
"Victor, go long on S&P 500 futures, $50 billion position."
"YM Dow Jones futures position of 2 billion, built over two days, with slippage strictly controlled to within 20 ticks."
"NQ Nasdaq futures positions of 20 billion were opened simultaneously."
As Ron issued a series of instructions, the Hunter Capital trading room came into full swing.
Ron didn't stop, and continued:
"US$100 million each in S&P 500 and Dow Jones spot positions, and US$200 million in Nasdaq spot positions, all with 10x leveraged long positions."
"Received!" Victor's fingers flew across the computer screen.
Ron paced back and forth alone in the control room.
A moment later, the options panel was brought up, and it was said:
"Buy call options on SPX, DJX, and NDX, with a total long position of $1 million for each, at a strike price of..."
He pondered for a moment, then ultimately left the decision to Victor: "You handle it. Prioritize the shallow out-of-the-money strategy. Remember, don't rush. Open all positions over two days. If necessary, use Merrill Lynch's dark pool in conjunction with the iceberg algorithm."
"clear!"
With over $10 billion in margin being used this time, Ron has to be careful.
He rubbed his forehead, recalling the information in his mind:
On July 13, Greece successfully auctioned short-term government bonds, returning to the market for financing.
Since the Greek financial fraud scandal was exposed last year, the EU's glamorous facade has been stripped away.
The euro has also fallen from its peak of 1.5160 to a low of 1.1875 this year, a drop of more than 20%.
As a result, US stocks also suffered from market panic over the past six months, resulting in a sharp decline.
Greece's return to the market signifies a fundamental stabilization of the European debt crisis.
Not only will the euro rebound and the panic subside, but multinational company stocks in the US will also rebound.
It truly began in Greece and ended in Greece.
Ron logged into his JPMorgan Chase account, looked at the $5 million that had been transferred in over the past two days, and dialed his personal broker's internal number:
"Help me go long on Euro futures within two days, with a notional gold price of 30 billion euros, executed in installments based on the best market quote, and with strict control over slippage."
"In addition, we simultaneously established a $20 billion long position in the euro spot market with 20x leverage. We also allocated $5000 million each in premiums for at-the-money and slightly out-of-the-money euro call options to establish positions at lower points."
"The remaining funds serve as a safety net."
"Okay, Mr. Hunter. You want to buy in without leaving a trace within two days..."
After the JPMorgan broker double-checked, he began verifying the identity and security code.
The plan is complete; now we just need to wait for good news.
Seeing that it was still early before he got off work, Ron dialed Old Hunter's number.
"Dad, your precious son needs you now," Ron said with a grin.
"I don't have a son like you. I wish I'd never had you," old Hunter cursed into the phone. "Tell me, kid, what trouble have you gotten yourself into this time?"
Ron didn't stand on ceremony and recounted his experiences over the past few days.
After listening, Old Hunter fell silent for a moment.
"Dad?"
"Fuck!" Old Hunter couldn't hold back any longer. "You mean, you made a fucking billion dollars in a month, and now you want to start a $30 billion shit fund, and even take down a multi-billion dollar modeling agency for some little model?"
"It wasn't entirely for Kate's sake. I was trying to choose allies better, and they just happened to be in the wrong place at the wrong time," Ron explained.
"Fuck, what the hell is the difference?!"
Old Hunter felt like he wasn't fully awake.
This youngest son is too extraordinary and too troublesome; he can't help but wonder if he's even his own child.
Ron smiled wryly and said, "Dad, don't rush to scold me. I need your help right now."
"Don't call me 'Dad,' I'm starting to question your identity."
"Dad, you've hurt me so much. I'm going to tell Mom that you suspect she's cheating on me."
"Fuck!" Old Hunter's face changed drastically. He glanced guiltily at his wife not far away, coughed lightly, and whispered:
"OK! Forget I said anything. Now, tell me how you want me to help you."
Ron didn't stand on ceremony and explained his plan in detail.
……
In the IMG president's office, Vice President Michael Dolan was no longer the high-spirited man he had been at the beginning of the month when he took office.
His eyes were sunken, his fingers were yellowed from smoke, and his desk was covered with scattered documents and an overturned coffee cup.
Things were far worse than he had imagined.
He originally thought that the other party was just a newly emerging Wall Street institution, and although it had some money, it would not be able to extend its reach into the field of sports media.
Founded fifty years ago, IMG has come a long way to become the world's leading sports agency, weathering countless storms along the way.
In his view, even if that Wall Street upstart wanted to shake IMG, it would be impossible.
At most, it will cause some trouble for IMG.
For example, ruining the signing of a sprint superstar or kidnapping a lowly department head in one's own company.
Although the losses were significant, they did not have a major impact on IMG.
Therefore, when the other party replied that they refused to discuss the matter, Michael didn't really take it to heart.
Within two days, things began to spiral out of control.
Several sports stars signed under IMG have demanded to terminate their contracts, despite facing exorbitant breach of contract penalties, and have switched to rival companies.
It's worth noting that one of IMG's core competitive advantages in maintaining its position as one of New York's top four modeling agencies is its roster of sports stars.
The termination of these individuals' contracts directly shook the foundation of IMG.
Just as Michael was trying his best to salvage the situation, the IRS, in conjunction with the FBI, launched an investigation into IMG on charges of commercial bribery and misappropriation of the Forsterman Children's Fund.
It's worth noting that when IMG was acquired by Ted Forsterman for $7 million, it used a lot of high leverage.
This problem remains unsolved to this day.
Charitable foundations, needless to say, are a common tax avoidance method used by the wealthy.
Everyone knows what happened, but once it's exposed, it will be a reputational scandal for Ted Forsterman himself.
This has a much greater impact than the legal disputes involving his same-sex partner last year.
It was only then that Michael truly realized that the Wall Street upstart was more powerful than he had imagined.
Furthermore, the other party wasn't there to attack IMG, but to destroy it.
Thinking of this, Michael felt a chill run down his spine and swayed as if he were about to collapse.
He sacrificed so much to get to where he is today.
He was about to take the helm of IMG and become a true giant in the fashion industry.
Is IMG about to sink at this point?
What about all my efforts over the years?
At that moment, Michael wanted nothing more than to kill the department manager who had done the wrong thing.
dong dong dong-
The assistant came in: "Mr. Dolan, Mr. Forsterman has arrived downstairs."
"Yes, yes, I also have Forsterman."
Michael grasped at this as if it were a lifeline, and quickly rallied himself, straightening his clothes.
A moment later, Ted Forsterman entered in a wheelchair, accompanied by medical staff.
Ted Forsterman looks much more haggard than before.
"Mr. Forsterman." Michael respectfully accepted the wheelchair from the medical staff.
Ted Forsterman nodded curtly, his eyes devoid of any tenderness.
"My old friend told me that the IRS has not yet put Asafa and David on trial, but has only detained them temporarily."
Michael's eyes lit up: "You mean?"
He assumed that Ted Forsterman had used his connections to save the two men.
"Don't you understand?"
Ted Forsterman was disappointed in his former partner, even showing disgust in his eyes: "Some big shots don't want to get their hands dirty."
Michael was puzzled.
Ted Forsterman felt a deep sense of powerlessness, and he said wearily:
"Michael, go and deliver the evidence of these two men's past crimes to the IRS, and issue a statement in your name."
Although Ted Forsterman has considered replacing him, it's not the right time yet; at least he has to wait until this matter is over.
Before Michael could reply, he continued, "After you've done all that, go and meet Miss Upton in person."
"Sending Asafa and David's incriminating evidence to the IRS is fine, but Mr. Forsterman, why insist on personally going to see that little model? She's just that Wall Street nouveau riche's plaything..."
In Michael's view, the two men detained by the IRS deserved their fate.
If it weren't for these two people, the company wouldn't be in this state.
Even if he survives this ordeal, he won't let those two get away with it once he gets out.
But he simply couldn't bring himself to beg that young model.
"shut up!"
Ted Forsterman suddenly erupted in fury: "Go if I tell you to! You better pray she sees you, or disappear from my sight forever!"
If he were five years younger—no, even without a terminal illness—Ted Forsterman was confident he could handle not only a rising star on Wall Street, but also established capitalists managing multi-billion dollar funds.
But there are no "ifs".
He's old and nearing death.
No one wants to offend a rising Wall Street power for the sake of a dying person.
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