The head of Sequoia Capital Fund 8 is in discussions with the chief analyst of Sequoia Capital.

"Do you think Tesla is really worth $30 billion?"

Different from Moretz's offer to Wenming, in Sequoia Capital's internal risk control report, Tesla will inevitably choose to go public in the next two years, and the preliminary market value estimate after listing is $30 billion.

And this is also the reason why Moretz was able to offer Wen Ming a valuation of $3 billion.

"When Elon Musku took control of Tesla, I think Tesla's market capitalization would be around $40 billion," the chief analyst said. However, it will take at least five years. But now, Tesla belongs to Wenming, so I think Tesla can go public within two years and reach a market value of $30 billion. ”

The person in charge of Fund No. 8 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: "It's not just me who is bullish on him, but even Mr. Valentine is very bullish on him. ”

This sentence made No. 8 very surprised, because the chief analyst said that Mr. Valentine is the founder of Sequoia Capital - Don Valentine, he has a title of the father of venture capital, not the father of venture capital of Sequoia Capital, but the father of venture capital all over the world, which shows his status and influence.

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

The chief analyst smiled and replied: "Actually, we never thought that Tesla would go out of business, but before, Elon Mascu's desire to control was too strong, and Tesla was not to the point where it was the most suitable investment, so we have not made a move on Tesla." What I didn't expect was that Wen Ming was able to take a step ahead of us and acquire Tesla as a wholly-owned company. ”

Elon Musku was also very rich before, so Tesla didn't need financing, and when Tesla wanted financing, Elon Musku's first choice was not Sequoia Capital, but an auto group like Daimler.

No. 8 asked: "But Tesla's technical problems have not been solved, how can it be profitable?" If you don't make a profit, how can you get a market value of $30 billion? ”

The chief analyst took out a document, handed it to No. 8, and said, "This is a result of our analysis of the list of equipment and materials purchased by Jurassic Island. ”

Before the completion of the wholly-owned acquisition of Tesla, Wen Ming had already begun to study Tesla's gearbox problem after acquiring a part of Tesla's shares. And after completing the acquisition, he spent another week on Jurassic Island. Moreover, he should have spent a week in the laboratory, and it is worth mentioning that he did not stay in the laboratory where the dinosaurs were resurrected all the time. ”

"And after he left Jurassic Island, it was equivalent to going directly to Tesla's laboratory, and as for the laboratory on Jurassic Island, no one ever went into it again."

After reading the document, No. 8 was stunned and asked, "Why didn't you tell us this news before?" ”

If you don't understand this, the person in charge of this fund doesn't have to do it, after the acquisition is completed, he doesn't go to the company, and stays in the laboratory for more than a week before going to his own company, what other reason can he have?

The lead analyst laughs, "Just as we can get some information about him, he might be able to get some information about us." Now I'll tell you because Moretz has gone. ”

……

Wen Ming didn't know that it was not Zefu or a researcher at Tesla Labs who exposed his ability to solve Tesla's technical problems, but himself.

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

"Mr. Wen Ming, a fund under our name can be said to have the right to speak in the new United Automobile Manufacturing Company (NUMMI), and because this company has 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 Ming almost drooled when he heard it, 5.3 million square feet, equivalent to an area of more than 490,000 square meters, almost equivalent to two sizes of his spaceship headquarters, and much larger than the current Tesla factory.

But the surprises brought by Moritz are not over.

On top of that, NUMMI had previously received approval from the City of Fremont to expand the plant to 10 million square feet. And based on what we know about Tesla's previous factory production speed, if Tesla gets that factory and starts renovating it, it will eventually be able to produce 500,000 Tesla cars per year. ”

What is the concept of producing 500,000 Tesla cars per year?

Tesla, in another world, sold only about 80,000 units a year when its market value reached $60 billion. For Tesla in another world, such a high production efficiency is really not of much use.

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

Even if he lowers the cost, a Tesla sports car can earn $30,000 if it doesn't count the profits from after-sales and other aspects, and how much can it earn if he sells 10,000 vehicles?

$300 million only.

Wen Ming is confident that he will sell more, but no matter how much you sell, Tesla's existing factories can't supply it, and the production requirements of pure electric vehicles are different from those of fuel vehicles, and he can't even find other factories to OEM.

After Moritz's conditions were opened, Wen Ming asked directly: "If I don't accept Sequoia Capital's shares, then I can't buy that factory?" ”

Moretz laughed, "Of course I can't stop you from buying that factory, and you can even choose to buy it from other factories." But Mr. Wen Ming, I think you need to find a professional to calculate the time to find a suitable factory, then negotiate the purchase, and finally carry out the reconstruction and expansion. ”

Time is of the essence, and the reason why Wen Ming bought Tesla at a premium is to be in a hurry.

Judging from the current situation, he made the right choice, because the current Tesla factory can produce 30,000 vehicles per year, which can provide him with a net profit of 900 million US dollars. If you add the after-sales profits, it is quite considerable.

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.

Tesla that loses money can reach a market value of $60 billion, let alone Tesla, which has an annual profit of more than $1 billion?

When the time comes, he will not only be able to continue to control Tesla, but also be able to cash out a large amount of cash, which is a great deal.

But now, there is a more lucrative way in front of him.

The additional production of 500,000 Teslas is equivalent to a net profit of $15 billion a year, and at that time, how much should Tesla be worth?

Of course, the premise is that 500,000 units can be sold in a year. But even if it can't sell 500,000 units, how bad can it be to improve the performance of Tesla's pure electric sports car with Wenming?

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

"Mr. Moretz."

Wen Ming suddenly laughed and said, "Actually, we are preparing to try a new car today, why don't we visit it together?" ”

Moretz's eyes lit up, and he understood what Wen Ming meant, and he must not be satisfied with his offer. Because someone who can report a valuation of $150 billion for an unlisted company will definitely not be able to look down on a valuation of $3 billion.

So now, let's see how much Wenming has changed Tesla.

"It was an honor for me to be able to see Tesla's new car trial."