What's wrong with me being a rich man?

Chapter 465
Renault shares plummeted at the open.

There was no speculation about a trading halt, no response to France's actions against the factory, and no comment on the widely circulated rumors of changes within the automotive alliance; the stock price simply plummeted.

Incidentally, it also included the stock prices of well-known automakers such as Volkswagen, BMW, and Daimler.

In just half a day, Renault's stock price fell by more than 20%, Volkswagen by 6%, and BMW, Daimler and other companies by about 2%, while Nissan, a member of the same alliance, fell by nearly 8%. Global listed automakers lost more than $200 billion in market value.

Multiple media outlets reported on this scandal storm originating from the automotive industry immediately.

The Wall Street Journal's headline, "Renault scandal triggers global automaker sell-off, investors suffer heavy losses," mentioned the beneficiaries in the US: "The shockwave from Renault's 20% plunge in stock price quickly swept across global markets. General Motors fell 3% and Ford fell 2.5% after the New York Stock Exchange opened, but Tesla bucked the trend, rising 1.5% due to expectations of electric vehicle replacement. European automakers' long-touted clean diesel energy may have to give way to super new energy like Tesla."

The Japanese newspaper Asahi Shimbun ran a headline, "Renault scandal implicates Nissan, Japanese automakers face a trust winter," continuing to criticize Ghosn's leadership and expressing concern about the impact on technology sharing and supply chain cooperation in this incident.

In addition, Japan's Ministry of Land, Infrastructure, Transport and Tourism has requested domestic automakers to conduct self-checks on emissions data. Toyota, Honda, and other automakers reacted quickly and issued emergency statements, indicating that they strictly comply with regulations.

In addition, Nissan held a press conference at 1 p.m. to announce the latest appointments of the board of directors, removing Ghosn from all his positions and appointing Hiroto Saikawa as CEO.

As the new CEO, Hiroto Saikawa directly listed three major charges against Ghosn at the press conference. The first was his personal salary tax evasion, which was revealed by the Special Investigation Department. The second was accusations of his personal dictatorship, turning Nissan into a Ghosn kingdom and denying and erasing Nissan's tradition and dignity.

The last point is a new allegation that Ghosn misused public funds for private investments.

Nissan's decision and Hiroto Saikawa's condemnation were not entirely unexpected by reporters. Now that he had been arrested, like Renault, the CEO would inevitably be replaced, and the evaluation of Ghosn would inevitably follow the position of the Japanese judiciary.

An Asahi Shimbun reporter asked a question that is currently of great concern: "Will the Renault-Mitsubishi-Nissan alliance, the world's largest automotive alliance, collapse as a result?"

Hiroto Saikawa, without much hesitation, quickly gave a direct answer to the question: "As Nissan's CEO, I will lead Nissan to continue advancing the alliance's cooperative relationship. Renault's partnership with us is very important, but..."

"Nissan's independence should not be overlooked, and at the same time, the cooperation between Mitsubishi and Nissan will be a key focus in the next phase."

"If we believe that closer cooperation will bring greater competitiveness, we will not rule out the possibility of a merger between Mitsubishi and Nissan in the future."

Hiroto Saikawa released some positive news, which immediately narrowed the decline in Nissan's stock price.

Meanwhile, although no reporters asked related questions, Hiroto Saikawa still indignantly mentioned the short-selling mastermind, strongly urging: "Renault's emissions problem will be investigated and decided by relevant agencies, and the future of the three-party alliance will be stabilized and developed through our joint efforts. However, we cannot sit idly by and watch ambitious figures like Guoshanfeng run rampant in the international financial market!"

He repeated emotionally, "We must not let such ambitious individuals get away with this!!"

As an important press conference for Nissan, Hiroto Saikawa, the newly appointed CEO, showed great respect to Kazuo Yamazaki.

However, while the press conference helped Nissan's stock price recover somewhat, it caused Renault, which also showed signs of recovery in the afternoon, to extend its losses again.

The possibility of a merger between the two Japanese automakers in the three-way alliance cannot be ruled out. This would undoubtedly weaken Renault's position in the alliance, especially given the emissions scandal that has erupted at Renault, whose previously dominant voice would inevitably be challenged.

Ghosn is gone. He was the CEO of two companies, but now Renault and Nissan have two new CEOs. How can the alliance's leadership be determined?
And how will Ghosn's guilt ultimately be determined? Can the technological cooperation that the two sides were originally pushing forward still be postponed?

These are all extremely real and complex issues.

Therefore, following Nissan's change of leadership, Mitsubishi Motors also issued a statement saying it would recommend to its board of directors the removal of Carlos Ghosn from his position as chairman of Mitsubishi Motors. This continues to demonstrate to the global market the complexity of automotive alliances without a leader.

According to French time, the morning of this day saw Renault dragging down global automakers with its emissions scandal. However, in the afternoon, as different voices emerged, the stock prices of companies such as Volkswagen, Toyota, and BMW rebounded from their oversold levels, narrowing their losses. Only Renault's price continued to decline.

By the closing time of 5:30 p.m., Renault's stock price, already burdened by bad news including emissions scandals, regulatory investigations, a change in leadership, and concerns about the future of the alliance, closed at €32.4, a 28.6% drop for the day, wiping out €54 billion in market value, equivalent to US$74 billion or RMB457 billion.

This set a record for the largest drop since Renault's listing, but it's not the largest drop since Guo Shanfeng started his business. For this most mysterious and possibly most famous short seller in the world, the epic stock price crash of Vania is even more impressive.

However, although Guo Shanfeng's short-selling report only attacked Renault, the global media did not regard it as Guo Shanfeng's solo attack on Renault, but rather as Guo Shanfeng's massacre of listed automotive companies worldwide.

Many automakers narrowed their losses in the afternoon, but including Renault, global automakers still lost more than $260 billion in market value, a figure that surpasses the collapse of Vania.

—The deadly venom that crosses mountains!
—Mitsubishi, Renault, is the next automaker far behind?

—A review of the rise of Guoshanfeng: How did the "Short-Selling Master" become a legend?
Who is behind the mountain peak?
—The world's most mysterious short seller!

—The Renault tragedy of May 504th!

After the trading day ended and the wealth losses of listed companies worldwide were tallied, it wasn't just Nissan that named Guo Shanfeng this time; multiple automakers and regulatory bodies named this most mysterious short seller.

In a media interview, BMW's Senior Vice President Robert said: "I don't know if Renault committed fraud, but even if Renault did, it shouldn't be like this according to convention. Short sellers like Overpeak are the most greedy vultures. They have single-handedly caused the market value of global car companies to plummet, making global investors pay for their hunting. I don't know what the EU and France are doing. Are they just going to watch it get away unscathed and then reappear next time?"

Gavin, a board member of General Motors, was even more indignant: "Find out the mastermind behind Guoshanfeng! Any transaction in the financial market should be conducted under due process, and Guoshanfeng has clearly violated this! If the law doesn't support it, then change the law!"

The executives from these two companies made their statements to the media, while executives from other companies expressed similar opinions on social media.

The French newspaper Le Figaro provided a detailed account of today's devastation at the Paris Stock Exchange, issuing a serious appeal. "Renault's 28.6% single-day drop not only set a record for the century-old automaker's IPO, but also struck like a hammer blow to the backbone of French industry, wiping out €54 billion in market value in a single day. When the combined market capitalization loss of global automakers reached $260 billion, we are forced to confront a grave question: Is this a normal market punishment for corporate mistakes, or a meticulously planned financial assassination?"

"The highly suspicious and precise strike by the mountain peak caused Renault's stock price to plummet, and the subsequent chain reaction plunged the entire automotive industry into panic. This information bomb-style short-selling strategy bears a striking resemblance to the price manipulation case handled by the French Financial Markets Authority at the beginning of the year—creating market panic through selective information disclosure and then profiting from stock price fluctuations."

"The difference is that this attack targeted the core assets of French industry, and its impact has long since extended beyond the financial market. Renault's 4.5 employees directly employed in France, as well as hundreds of thousands of jobs in its supply chain, are all facing uncertainty due to this financial crisis. This evaporated wealth means reduced R&D investment, job losses, and weakened industrial competitiveness."

"What is even more worrying is the impact on the Renault-Mitsubishi-Nissan alliance, which accounts for 12% of the global automotive market, and this is directly related to France's voice in the global automotive industry."

"The attack on the mountain peak has transcended mere market behavior and evolved into a disruption of the national industrial strategy."

"We urge the French Financial Markets Authority to immediately launch a full investigation into the mountain peak, and the EU should also reassess the current short-selling rules. All citizens, businesses, and regulators who value French industry must unite!"

"We must win this battle!"

On the morning of May 5th, Yu Xing was browsing the latest global news when he saw the serious appeal from the French media, and when he saw words like "national industrial strategy" and "comprehensive investigation," he couldn't help but get goosebumps.

There's no need to take it so seriously...

This time, even the mountain peak didn't take advantage of Renault's situation to attack others.

As for the chain reaction leading to the decline in automakers' stock prices... that's just how the market chooses. If you want to protect industry, then don't let BNP Paribas' funds sell off Renault shares...

BNP Paribas sold 2% of its shares in a single transaction yesterday, a major factor driving the recent plunge.

Yu Xing felt a chill run down his spine, only feeling better when he thought about the fraudulent activities of companies like Volkswagen.

As the process of verifying and identifying car companies committing fraud next door progresses, and as it becomes clear that it's not just one car company choosing to cheat to comply with emissions regulations, he is now starting to suspect that there may be a problem with the formulation of emissions standards themselves.

However, as Liu Wanying said, Guo Shanfeng only points out the problem; the formation and resolution of the problem are left to others.

Around noon, Yu Xing spotted Xu Xin again, who had been resting nearby the day before. With dark circles under her eyes, she had clearly been keeping a close eye on the short-selling situation.

"The automotive industry is really in deep trouble this time. Some media outlets have compared Guo Shanfeng to a ghost haunting the automotive industry." Xu Xin didn't talk about the Silicon Carbon Group at all upon meeting, and immediately brought up the topic of short selling of Guo Shanfeng. Then, looking at President Yu's expression, she asked, "President Yu, did you not sleep well last night?"

Yu Xing also had dark circles under his eyes today.

He shook his head: "I've been thinking about the silicon carbon group. I'm thinking that if 'Jiuzhou' goes on sale next year and the market response is good, we might try to push for its listing. This would allow us to obtain more funds and resources, which would be beneficial for our R&D accumulation."

Xu Xin perked up: "Next year? Next year is good, President Yu. New energy is a market that needs to be explored. Going public sooner is more beneficial than harmful, even if the initial valuation is not high enough."

Yu Xing grunted in response, offering a few perfunctory words, but his mind was still preoccupied with global developments.

Without him even mentioning it, Xu Xin naturally continued the topic of Guoshanfeng, also mentioning the names and statements from Nissan, BMW, GM, French media, and other parties, and said with a smile: "Guoshanfeng is in trouble now. It would be best to just bring Guoshanfeng out and see its true face."

Yu Xing remained silent, staring at Xu Xin in front of him.

Xu Xin took a sip of bitter coffee to refresh herself, noticed President Yu's gaze, and reached out to touch her cheek: "President Yu, what's wrong?"

“To reveal the true face of Mount Lu, I see you as nothing more than a mountain peak!” Yu Xing said.

Xu Xin was certainly not a mountain peak, but she was still taken aback by these words.

A strange look flashed across her face, and she laughed, "How do I look like one? If I were a mountain peak, I'd be all high and mighty. Why would I need to come all the way to Lingang to see how you're making cars? Why would I need to hope that you'll go public soon? I'd already be running rampant in the financial markets."

Yu Xing withdrew his gaze and retorted, "You really want to act like a tyrant. Sigh, things in this world are really unpredictable. Ghosn went from hero to prisoner in the blink of an eye. I now hope that the mountain peak can just stay hidden like this, but it's best not to limit it to car companies. Let's expand into other industries and dismantle more scams. That would be a way to set things right."

Xu Xin was somewhat surprised, and a hint of joy also welled up in her heart: "Tsk, President Yu, you've changed your opinion on Guoshanfeng now? Guoshanfeng shorted Renault, a gas car company, but Tesla's stock rose against the trend, and you benefited from that, huh?"

Yu Xing smiled naturally and said, "Benefit? Ha, yes, benefit."

“Several hundred billion dollars, wow, everyone used to say that this short seller was a killer of Chinese concept stocks, hey, several hundred billion dollars.” Xu Xin spoke of the destruction caused by the big short seller with a leisurely and wistful look, “Now they are investigating it, it will probably have to keep a low profile for a long time. I have seen many media outlets say that the market’s panic will subside, and this storm in the automotive industry will probably be over soon.”

Yu Xing took a sip of tea. Was the storm over?
The storm has only just begun.

However, as he was thinking this, a piece of news from France quickly caught his attention.

The French Financial Markets Authority (AMF) has officially launched an investigation into Guo Shanfeng, and sources indicate that the investigation began before the market opened on Monday.

(End of this chapter)