The Birth of Shanghai's First Conglomerate

The group is going to hold a super-large team building event in June.

The news spread quickly throughout the company, especially since the big boss had personally taken out 800 million to subsidize the event.

What does this mean?

At the entire Kingsoft headquarters, there are currently 56,000 employees online.

If the 15 million is spread out, that means each of them can get 000 for travel expenses.

If you add the money provided by the company, each person will receive approximately 20,000 yuan for the trip.

Spending 20,000 yuan for three days is definitely a lot of fun.

Many people were worried about the company's financial difficulties and were planning to crowdfund to get through the crisis. Unexpectedly, the big boss not only didn't need them to contribute money, but also gave them 800 million yuan to have fun for three days.

This is definitely the largest group with the most extravagant team building expenses in 2020.

The group's planning department also divided this team building activity into many different types of activities.

This includes resorts and marine tourism.

Employees can choose where they like to go.

The travel budget was burning through cash, but Chen Pingsheng didn't care.

After he allocated 20 billion yuan to Tengfei New Energy, Tengde Times planned to use 8 billion yuan to build a new super battery factory in Guangdong.

Meanwhile, Tengfei New Energy plans to further expand its research institute.

Three new cities will be selected to build science and technology industrial parks.

The period from 16 to 19 was just the beginning of the new energy era.

Everyone here relies on financing, subsidies, and loans to survive.

20 to 24 years is clearly the mid-term stage for new energy vehicles.

As the overall market share increases, only those who can outperform in this stage will truly secure a place in the future new energy vehicle market.

Tengfei New Energy not only aims to outperform in this phase, but also to truly become number one in China during this phase.

With its comprehensive industrial chain advantages, it ensures that it will be unique in future competition.

Currently, Tengfei is the only company in China that covers the entire new energy vehicle industry chain.

These include core technologies in areas such as battery research and development, AI-assisted driving, motors, and electronic control.

In addition, there are traditional components such as chassis tuning, engine development, and transmission.

It can be said that he has done research and development in every aspect, and the research and development time has been as long as five years.

This year, we're allocating another 200 billion yuan to thoroughly consolidate Tengfei New Energy's core advantages.

He expects to spend another 40 to 50 billion next year.

Tesla's market capitalization of over 500 billion US dollars completely spurred him on.

There's no doubt that he still has a certain gap compared to Tesla; the whole company knows that.

He would never say online that he is better than Tesla, but it is a fact that the gap is getting smaller and smaller.

It is expected that in another three years, this gap will be reduced indefinitely, and may even be reduced to a point where they are almost the same.

This is all highly likely, considering that he owns 100% of Tengfei New Energy.

Everyone else only received dividend shares, but if the company goes public, his net worth will skyrocket.

When Chen Pingsheng held a meeting at Tengfei New Energy, he even proposed an overseas strategy for the first time.

The general idea is to build factories overseas. If Tengfei New Energy wants to sell its cars overseas, building a super factory overseas is an inevitable choice.

The domestic market alone cannot reflect the extent of his investments over the years.

It will also be unable to achieve internationalization, and its future market value will be significantly reduced.

According to his own plan, before Tengfei New Energy goes public, it must establish its own super factories in at least two overseas countries.

Globalization has been fully completed.

The senior management team of Tengfei New Energy includes Yan Donghui, Zhang Qiming, and Xu Dong.

Everyone is full of confidence now. It takes at least one to two years for a super factory to go from land acquisition to investment and construction.

Their investment this year means they will complete their globalization by the end of 2022.

This timing is actually very appropriate, giving major research institutes in China another two years to catch up.

This put pressure on everyone.

You have to understand that when you go overseas, there are no such policy subsidies as in China, so you have to compete on equal footing with all other cars.

Everyone is in the initial stage. If they can still sell well under these circumstances, then that's what true globalization is all about.

Selling well only domestically makes them like children protected by government policies. Not to mention other things, gasoline-powered cars have a purchase tax, while new energy vehicles don't.

This alone is enough to make many people choose new energy vehicles when selecting a car.

Not to mention other subsidies, which can be said to be in order to support the development of new energy.

That would mean sacrificing at least several hundred billion dollars in tax revenue every year.

In this situation, outperforming those so-called joint venture cars is not because new energy vehicles are really that good, but simply because they have enjoyed too many preferential policies.

It's different when you go overseas.

That's true participation in global competition, competing on par with century-old car companies.

Without the so-called patriotism, they can still keep up with Tesla in sales.

To truly be excellent is to surpass even Toyota and Honda.

Chen Pingsheng has always had this goal, so he never holds any boasting conferences in China, nor does he deliberately promote his achievements.

Because he knows that what he has achieved so far is far from enough.

He originally planned to start globalization two years later, but Tesla's stock price increase this year has made him decide to bring the plan forward.

And most importantly, there has been a core breakthrough in solid-state batteries.

It is estimated that large-scale production will be achieved in three to five years at most.

And to fully commercialize this technology.

This is the source of his confidence and the reason why he wants to expand his overseas super factories.

The key is that Tesla's stock price has risen so sharply that he has enough money to realize his ideas.

Before entering the Chinese market, Tesla was barely surviving and on the verge of collapse.

It wasn't until the completion of the Shanghai mega-factory that it truly took off.

This shows just how brutal the overseas new energy vehicle market is.

His decision to launch an overseas strategy has put immense pressure on everyone.

It's only a matter of time before Tengfei New Energy becomes number one in China.

It's different overseas; only by fighting tooth and nail can you win.

Chen Pingsheng arranged for Zhang Qiming, who used to be a senior vice president at BMW, to discuss the matter of building factories overseas.

It is most appropriate for him to do this, and the location of the first mega-factory should definitely be arranged in a developed country.

Choosing North America is undoubtedly the most suitable option.

Once things are settled on the other side, he will probably invest between 15 billion and 20 billion.

The biggest difference between overseas factories and domestic factories is that labor costs are high and overtime is not required.

If you ask them to work a little overtime, they'll immediately bring up the union to negotiate with you.

Many domestic bosses, after going there, are still trying to use the same methods as those in China.

The result was that he was punished to the point of questioning his existence.

If we were to pinpoint China's biggest advantage in the industrial chain, it would be its low labor costs.

How low is it?

For the same working hours, we only earn a fraction of what others earn.

In the early stages, this kind of development was perfectly fine, after all, so many people need to eat and it's not easy to have a job.

Things are different now. If we want to compete globally, we can no longer rely solely on the advantage of low labor costs.

That would be rejected in most places.

The reason is simple: the same worker, you work 12 hours a day but only get 6,000 yuan in wages.

Others can earn over 10,000 yuan for an eight-hour workday.

In terms of cost, we definitely can't compete with you; in fact, the gap is huge.

Since everyone is not competing on the same cost basis, let's implement anti-dumping measures.

What do you mean?

They directly ban your low-priced goods from entering their countries and use various legitimate measures to protect their domestic businesses.

The same principle applies to car manufacturing. Once you go overseas, you can only abide by other people's rules.

(End of this chapter)