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The person in charge of Sequoia Capital No. 8 Fund is discussing with the chief analyst of Sequoia Capital.

Do you think Tesla is really worth $30 billion?

Different from Moritz's quotation to Wen Ming, according to Sequoia Capital's internal risk control report, Tesla will inevitably choose to go public in the next two years, and the initial market value estimate after listing is 30 billion US dollars.

And this is why Moritz was able to offer Wen Ming a valuation of US$3 billion.

The chief analyst said: When Elon Musk took control of Tesla, I thought Tesla's market value could reach about 40 billion U.S. dollars. However, it took at least five years. But now, Tesla has It belongs to Wen Ming, so I think Tesla can go public within two years and reach a market value of 30 billion U.S. dollars.

The person in charge of No. 8 Fund smiled helplessly: I thought I was optimistic enough about him, but I didn't expect you to be more optimistic than me.

The chief analyst said: Not only I am optimistic about him, but even Mr. Valentine is also very optimistic about him.

This sentence made No. 8 very surprised, because the Mr. Valentine mentioned by the chief analyst is the founder of Sequoia Capital - Don Valentine. He has the title of the father of venture capital, not Sequoia Capital. The father of venture capital, but the father of venture capital all over the world, shows its status and influence.

Mr. Valentine also thinks that Wen Ming can bring Tesla back to life?

The chief analyst smiled and replied: In fact, we never thought that Tesla would go bankrupt, but before that, Elon Musk's desire to control was too strong, and Tesla did not reach the point where it was most suitable for investment. , so we have never made a move on Tesla. Unexpectedly, Wen Ming was able to take over Tesla's entire ownership before us.

Elon Musk was also very rich before, so Tesla didn’t need financing. When Tesla wanted to raise money, Elon Musk’s first choice was not Sequoia Capital, but Daimler. car group.

Asked on the 8th: But Tesla's technical problems have not been solved, how can it be profitable? If it is not profitable, how can it get a market value of 30 billion U.S. dollars?

The chief analyst took out a document, handed it to No. 8, and said: This is a result we obtained through analyzing the list of equipment and materials purchased by Jurassic Island.

Before completing the acquisition of Tesla's wholly-owned shares, Wen Ming had already started to study Tesla's gearbox problems after acquiring a part of Tesla's shares. After the completion of the acquisition, he He stayed on the island for another week. Moreover, this week should be spent in the laboratory. It is worth mentioning that he did not stay in the laboratory of resurrecting dinosaurs all the time.

And after he left Jurassic Island, it was equivalent to going directly to Tesla's laboratory. As for the laboratory on Jurassic Island, no one has ever entered it again.

After reading the document on the 8th, he was stunned and asked, Why didn't you tell us this news before?

If you don’t understand what you see here, the person in charge of the fund doesn’t have to do it. After the acquisition is completed, he doesn’t go to the company. He stayed in the laboratory for more than a week before going to his own company. What reason can he have?

The chief analyst smiled and said, Just as we can get some information about him, he might also be able to get some information about us. I'm telling you now because Moritz has gone.

...

Wen Ming didn't know that it wasn't Zeff or a researcher in Tesla's laboratory that revealed that he could solve Tesla's technical problems, but himself.

At this time, he was listening to Moritz's proposal.

Mr. Wen Ming, a fund under our name can be said to have the right to speak of the New United Motor Manufacturing Company (NUMMI), and because the business failed, it has reached the point where it needs to sell the factory.

That facility covers 370 acres and has 5.3 million square feet of production and office space.

Wen Mingting was almost drooling, 5.3 million square feet, equivalent to an area of ​​more than 490,000 square meters, almost equivalent to the size of his spaceship headquarters, and even bigger than the current Tesla factory a lot of.

But the surprises from Moritz didn't end there.

Besides, NUMMI had previously received approval from the city of Fremont to expand that factory up to 10 million square feet. And based on what we know about Tesla's previous factory production rate, if Tesla Ra took that factory and started rebuilding it so that it would eventually be able to produce 500,000 Tesla vehicles a year efficiently.

What is the concept of an annual output of 500,000 Tesla cars?

Tesla in another world, when its market value reached 60 billion US dollars, its annual sales volume was only about 80,000 units. For a Tesla in another world, such a high production rate is really of little use.

But for Wen Ming, this kind of production efficiency is really exciting.

Even if he reduces the cost, a Tesla sports car can earn 30,000 US dollars without including after-sales profits, but how much can he earn if he sells 10,000 cars?

Only 300 million US dollars.

Wen Ming is confident that he can sell more, but no matter how much you sell, it’s useless if Tesla’s existing factory can’t supply. The production process requirements of pure electric vehicles are different from those of fuel vehicles, so he can’t even find them. Other factory OEM.

After Moritz's conditions were finished, Wen Ming asked directly: If I don't accept Sequoia Capital's shareholding, then will I have no way to buy that factory?

Moritz said with a smile: Of course I can't stop you from buying that factory, and you can even choose other factories to buy. But Mr. Wen Ming, I think you need to find a professional to calculate and find a suitable factory, and then negotiate the purchase , the time for the final renovation and expansion.”

Time is of the essence. The reason why Wen Ming bought Tesla at a premium was to hurry up.

Judging from the current situation, his choice is very correct, because the current Tesla factory can produce 30,000 vehicles per year, which means it can provide him with a net profit of 900 million US dollars. If you add the after-sales profit, it is quite impressive.

Moreover, when Tesla's profitability reaches this level, he can completely let Tesla go public. Then cash out tens of billions of dollars from the stock market.

A loss-making Tesla can reach a market value of 60 billion U.S. dollars, let alone a Tesla with an annual profit of more than 1 billion U.S. dollars?

At that time, not only can he continue to control Tesla, but he can also cash out a large amount of cash. This business is really a bargain.

But now, there is a more profitable way before him.

The production of an additional 500,000 Teslas is equivalent to a net profit of 15 billion US dollars a year. At that time, how much should Tesla be worth?

Of course, the premise is that 500,000 vehicles can be sold a year. But even if you can't sell 500,000 cars, how far can Wen Ming improve the performance of Tesla's pure electric sports car?

Wen Ming was very unwilling, because the more money Tesla made, the more valuable the shares he gave up. If not, it won't be worth that much money in a short time.

Mr. Moritz.

Wen Ming suddenly laughed and said, Actually, we are going to try out the new car today, why don't we take a tour together?

Moritz's eyes lit up, and he understood what Wen Ming meant. He must be dissatisfied with his offer. Because someone who can report the valuation of an unlisted company to 150 billion U.S. dollars must not look down on the 3 billion U.S. dollar valuation. Free Reader!!