Chapter 120: Shorting Tesla

Words : 1645 Updated : Sep 17th, 2025

The next day, Lu Liang, looking haggard, came to the office, occasionally rubbing his waist and yawning. The trading room was empty because yesterday he had given the six traders a half-day off, letting them go home during the day to rest and gather the clothes they needed, before coming back at five in the afternoon. No matter whether it was Beijing time or New York time, 24 hours had already passed, but to this day, Tesla had yet to announce the sales volume of Mao Dou X. The sales should be very impressive, obviously a good thing, yet it was treated with the secrecy of an emperor's death, not announcing the bereavement. This could also indicate that Lu Liang's judgment was correct, so it was time for him to start taking action. Time ticked away second by second, and before long, all six traders had returned to their posts, ready to face the battle of the night. At 9:30 in the evening, the US stocks opened. China's new policy heavily promoted the new energy sector, Modu specifically allocated 200,000 square meters for Tesla to build a super factory, and the impressive sales of Mao Dou X, all kinds of positive news were in play. Tesla's stock price surged 12% at the opening, skyrocketing by $21.84 to exceed $200 and reach $203.84. The advantage of no price limit on fluctuations means that positive news can be released instantly, unlike the A-share market with a ten-percent daily limit. Lu Liang pondered for a moment, then instructed, "Start selling in batches of 1,000 to 5,000 shares to suppress the stock price." His margin account had 50 million US dollars, using a four-times leverage, he could only tolerate a rise of 18.5 points. With 198 million dollars in funds, a loss of 35 million was tolerable; a loss rate exceeding 70% would trigger a margin call. Even if he did nothing, as soon as the stock price went over $215, his account would be frozen due to insufficient margin. There was only a $12.16 margin of error left, But with greater risk also came the potential for greater returns. If they could clear their 1,098,000 shares at $203.84, they would cash in approximately 223 million dollars. Then, if the stock price fell to $100, they would only need to spend 109 million dollars to repurchase those shares, and the $114 million difference would be their profit. After the 12% increase, Tesla's market value had reached 190.4 billion dollars. Lu Liang's holdings exceeded 1%; in the absence of major shareholders selling, he was Tesla's biggest market maker. As they began to unload and cash out their chips, the stock price was gradually pressed down. Almost instantly, the upward trend stopped, and a sharp angle appeared at the end of a thin line; the K-line started to probe downwards from there. This move immediately caused an uproar in the market. After all, short selling against such a tide of good news was tantamount to flagrant defiance. It also attracted the attention of Wall Street institutions; Tesla's rise was too rapid for them to enter on time, and they could only watch eagerly. Suddenly someone was short selling against the trend with determination, an action that piqued their interest. It also planted an idea in their minds, Why would this unknown force be short selling? Was there enormous negative news yet to be disclosed? They might not have gotten a share of the good news profits, but perhaps they could capitalize on the bad news. Wall Street institutions, like dogs catching the scent of sausages, followed the trail, eager to ascertain the reasons. "The wall falls and everyone pushes, the 18th is too far away, delays can lead to changes, I can't wait." Lu Liang muttered to himself, his held funds already had the power to sway market trends, and it was time for him to be bolder. Because the new energy index predicted a peak of 2985 points, but the final peak was only 2915 points. A 1.5 trillion market merely allowed him to earn 530 million, not even 0.01%, and the impact was so significant. Moreover, with Tesla, after short selling and financing, Lu Liang's holding of more than 1% of the shares meant his impact on the market would be even more profound. As long as he was making money, the future would change, The more he earned, the greater the deviation. Lu Liang decided to be bold, since it was the US stock market; he didn't need to worry about being invited for tea. S~eaʀᴄh the Nôvelƒire.net website on Google to access chapters of novels early and in the highest quality. So this time, planning a quick in-and-out, he would lead the charge, not giving Tesla any time to react. The trading hours for US stocks were from 9:30 in the morning to 4 in the afternoon, a full 6.5 hours without any break. Wall Street institutions were still investigating the reasons for the short selling, with Lu Liang's team as the sole force fighting on the front lines. For six and a half hours, everyone, including Lu Liang, worked at high intensity to sell a total of 420,000 shares. At an average price of $201.5 per share, they cashed out a total of $84.63 million. "Yutao, Zhang Jing," he called the two team leaders, "take them back to rest. If you need anything, tell Little Wen." Lu Liang, massaging his brow, understood the gravity of the trade; until it was over, no one could leave the company or make contact with any communication devices. Before the conclusion, all of the team's eating, drinking, and bathroom breaks took place in the trading room, thankfully considering that such a situation might arise, and a living area had been prepared. After a brief rest of a few hours in the adjacent office, Lu Liang met with Meng Changkun. He instructed him not to reveal his identity and to contact domestic and international media to spread rumors. "Focus on three points: First, why hasn't Tesla announced sales figures for the Model X?" "Second, can delivery truly be guaranteed in 16 weeks?" "Third, highlight the delivery story of the Roadster sports car." They owned a total of 1.098 million shares, with 420,000 spent on the first day, leaving only 678,000 shares remaining. If no reinforcements joined the fray afterward, with Lu Liang's current chips, he might not even make it to the end of the Golden Week. Once the market control was lost, the subsequent market direction would slip out of his hands. It might still plummet to $96 as predicted, but it could surge over $215 in the meantime, potentially blowing up his position. Should Wall Street institutions decipher Lu Liang's intent, they would likely tacitly band together to blow him up first. The more Lu Liang gained, the less they earned. Furthermore, they were used to harvesting retail investors around the globe, and a home raid was intolerable to them. Thus, Lu Liang planned to force a move and create momentum. He wanted to compel Musk to respond, providing a clear message to the consumers; even if Musk remained silent, it would still plant a seed of doubt among the investors. Through the previous night's trading, Lu Liang noticed that the buyers were mostly small individual investors who rushed in blindly. Though disorganized, retail investors' capital was always the most abundant in the market, and whoever they supported could win. Lu Liang didn't count on retail investors to fight the battle for him, but as long as they remained inactive, even merely on the sidelines, his odds of winning were significant. Meng Changkun understood and hurried to contact friends, given his foreign trade background and connections abroad. Through multiple layers of referrals, he eventually reached out to several automotive media outlets in France and a few internet influencers in the United Kingdom, raising three queries. If the news spread domestically first, it would be too conspicuous; exporting then redirecting to domestic sales was preferable. Moreover, domestic fans tended to be excessively loyal, adept at making excuses for their idols. A song aptly says that the favored always take liberties without fear; past events prove that Chinese consumers can be overlooked and treated differently. But it wouldn't work overseas where litigious actions abound, and any scent of profit would attract them like flies, both offensive and persistent. As the news began to ferment, Wall Street institutions also understood why someone would short Tesla against the market trend yesterday. Tesla had lost $180 million in the last quarter, and a loan of $465 million from the Energy Department was due at the year's end. Tesla's reluctance to reveal Model X sales figures had made everything crystal clear. A single car required an advance of at least one hundred thousand dollars, therefore ten thousand cars would need one billion dollars. Did Tesla have one billion dollars? Even if they did, did the California factory have the capacity to ensure 16-week deliveries? Would the saga of the Roadster repeat itself? The news fermented overseas for a night, yet Musk and Tesla did not respond directly. But the pressure on Lu Liang had lessened considerably—they only sold 100,000 shares that night, pushing the stock price down to $200. This indicated that those who were initially bullish no longer dared to bet. Lu Liang did not press his advantage, for it was not yet time for the final assault; he dared not sell all his chips, needing to reserve some for various contingencies. Musk would certainly take countermeasures.

Chapter 120: Shorting Tesla

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