"A valuation of 30 billion US dollars, we are offering 2.5 billion US dollars for 20% in the IPO."
Initially, Lu Liang proposed to use 30% of General Tianxing's equity for the IPO.
Because he was worried that as trade tensions between the two countries intensified in the future, this investment might be lost.
Just like this shorting of Neon, where Wall Street institutions pushed the US-Japan exchange rate to 140 yen, it's the same principle.
Moreover, as Tongtian prepares to contend with Tesla in the market, a lack of available shares would make it difficult to achieve anything significant.
However, General Motors strongly opposed this. Flannery had already disagreed with Tongtian going public at this time.
Now that Lu Liang wanted to offer 30% of the shares for IPO financing, they were even less likely to agree.
The two sides were at a deadlock, but eventually, they both compromised, opting for 20% and raising 6 billion US dollars.
