Chapter 92: The Loyalty of the Retail Investors
Chapter 92: The Loyalty of the Retail Investors
In many ways, it was bound to be a venture.
To produce a vaccine with over a trillion won in funding before it had even passed Phase 2 clinical trials.
They had even sold the vaccine worldwide before it was even produced.
- Senior Managing Director An Myeong-guk: CEO. This is no ordinary matter.
- Senior Managing Director An Myeong-guk: You told us to secure a delivery system, so we were contacting airlines and preparing to ship worldwide.
- Senior Managing Director An Myeong-guk: But Israel says their embassy staff will come to pick it up themselves. From the looks of it, I think they might be Mossad, the intelligence agency you only hear about in stories.
- Senior Managing Director An Myeong-guk: The UK and France also say they’ll handle the delivery directly.
- An Myeong-guk: We had aircraft ready, but they said it was fine, that they would transport it with their own military cargo planes.
The coronavirus had left numerous countries in dire straits.
They were doing their best to protect their citizens with maximum quarantine measures and emergency treatments, but they were reaching their limits.
In the United States alone, over 1,000 people were dying every day.
The virus was still spreading uncontrollably, and it was difficult to even tally how many people were dying when including Europe and other regions.
- Kim Shin: For those who want to pick it up themselves, please proceed with allowing them to do so.
- An Myeong-guk: Yes. Understood. I will proceed with that.
- An Myeong-guk: Also, military units have been mobilized to guard the Isung and DK vaccine production plants.
- Kim Shin: The military? Why?
- An Myeong-guk: There are concerns about potential terrorism.
- Kim Shin: Terrorism in South Korea?
- An Myeong-guk: We don't know if a terror attack will actually happen. Terrorism isn't common in Korea. But it seems the US and Europe are preparing for every possible contingency.
You don't have to plant a bomb in a skyscraper to cause damage.
Obstructing vaccine production at a time like this would be a devastating blow to the United States and Europe.
And so, on the day the first vaccine was produced, drawing the attention of the entire world.
[ K-Vaccine Production Begins. ]
[ K-Vaccine, Currently in Phase 3 Trials, Begins Production. High Potential to be a Game Changer. ]
[ K-Vaccine: The Solution to End COVID-19 ]
[ K-Vaccine Approval Possible Within the Year? ]
The global stock markets reacted.
The Korean stock market lit up in red as it skyrocketed, and the markets in China, Japan, and Hong Kong all rose by more than 5% in tandem.
A few hours later, the stock markets in Europe and the United States followed suit.
[ NASDAQ Hits All-Time High on COVID Vaccine Production News ]
[ Tesla Soars 12.58% ]
[ Global Buying Spree Focuses on Tech Stocks Amid Economic Recovery Hopes ]
[ Positive Winds Blow Through Global Financial Markets ]
Even though only 1,000 doses were made on the first day due to production not yet being stabilized, the media churned out reports, and the stock market moved.
‘This is surprising.’
To think the protagonist that sent the world's stock markets into a frenzy was my own company.
For the past two years and eight months, I had been feeling just how great the power of financial therapy was.
Whenever I felt stressed from business and investments, checking my growing bank balance would put me at ease.
The stock prices of most of the companies I had invested in on the New York Stock Exchange had risen significantly.
And Tesla, in a word, was insane.
‘I bought it at $50.’
I had bought the stock at $50 a share.
Tesla's stock hadn't risen for the past few years, but considering its future value, I had boldly invested $4 billion.
I became a major shareholder, holding 7.93% of Tesla's shares.
In April, it surpassed $160.
At that point, I had earned a sweet 220% return, making a profit of $8.8 billion.
‘There might be a correction. Still, the New York market is so strong, let's just hold on to it.’
I decided not to sell Tesla and let it sit.
If I sold for a profit, it would be difficult to accumulate enough shares to become a major shareholder again.
In May, Tesla's stock price hit $180.
It had risen about 10% in a month, providing a rather handsome income.
In June, the rate of increase began to steepen, breaking past $210.
In July, it surpassed $300, and in August, it crossed the $500 mark.
‘How is this even possible?’
Tesla's market capitalization was approaching $500 billion.
The return over six months was 1,000%.
‘Is that roughly the price of 24 Mirae Motors?’
Considering Mirae Motors' influence and share in the Korean economy, it was an absolutely colossal amount.
Having started my investments with Bitcoin, I was somewhat used to the rise in asset value, but I still couldn't get accustomed to this stock price surge.
‘This is crazy. Seriously...’
Occasionally, I would get a Telegram message from Elon Musk.
- Elon: Friend. Any thoughts on coming to Florida this week?
A genius brimming with confidence.
He called me a friend and treated me casually.
- Kim Shin: Florida?
- Elon: My friends are coming back from their trip.
- Elon: I'm planning to welcome them!
It was an unexpected thing to hear from a workaholic who believed one had to work 100 hours a week to achieve results.
- Elon: Astronauts Doug and Bob. They'll be landing in the ocean off the coast of Florida.
- Elon: It's going to be the event of the century, with the whole world watching. I'm going to greet them with the most beautiful women and party all night!
As it turned out, it was the return of the astronauts who had traveled on the private spacecraft launched by SpaceX.
They were returning after spending over two months on the International Space Station.
- Elon: Kim Shin. There are a lot of people who are curious about you. The people on Wall Street showed incredible curiosity when I told them I'd met you.
- Kim Shin: Really?
- Elon: Famous investors, fund managers, chairmen of financial firms. They all want to meet you.
- Elon: The major shareholders of our company, too.
Life in America meant that as my wealth grew, so did my network of connections.
- Kim Shin: I have my own business to run, so Florida is a bit too far.
- Elon: Such a shame. I'll introduce you to a wonderful woman later.
- Elon: Have lots of kids. It'll be a tremendous experience.
My personal values didn't quite align with Elon Musk's, but he was a cheerful person who inspired me.
The more I got to know him, the more he made it impossible to stand still.
* * *
“Nikola is developing an ecosystem that integrates next-generation truck technology and hydrogen infrastructure.”
“Could you also share a few words about your future plans?”
At the reporter's question, Nikola's CEO, Trevor Milton, smiled and said.
“Nikola will change the global transportation market. From zero-emission batteries to hydrogen-electric vehicles, vehicle components, energy storage systems, and hydrogen fueling stations. This is the first step in accomplishing this enormous task.”
“It has been six years since the company was founded. There are criticisms that no vehicles have been delivered to customers so far, and the vehicles that have been unveiled are nothing more than mock-ups.”
“With the Nikola One, we presented a vision for hydrogen trucks. Humanity walked on two feet, rode horses, and then developed cars. Every step of innovation required time. Nikola will pioneer the future of hydrogen fuel cells. That is precisely why we continue to cooperate with Korea's Iaan Energy, America's GM, and Germany's ZF and Bosch.”
With every question from the reporters, he listed the various companies collaborating with Nikola.
Trevor Milton even declared that Nikola's stock price was proof of its future potential.
The first signs of trouble for him emerged from a Korean online community for retail investors in US stocks.
- Hey, you know our man Kim Shin. He's been successful with all his investments, but isn't it weird that he sold off Nikola so early?
- What's weird about it? He made over 20 times his money.
- No, but you know. Just like with the crypto market back in the day. Whenever Kim Shin sells, the price seems to plummet.
- It's just a coincidence. There can be companies like Nikola that do well after he sells.
- If he'd held on to Nikola, he would've made 3 times more. But he switched to Tesla and made 10 times more.
- The big Korean corporations must be kicking themselves. Who would have thought at the beginning of this year that Kim Shin would be this successful in the US?
- For real, isn't he on his way to becoming a $100 billion man? Like, top 3 on the world's richest list?
- No way...
- No, you never know. It might be possible.
- Isn't he almost there?
- He's probably short about $20 billion.
- Wow... the fact that he's "short" that much is legendary...
The Korean retail investors had an immense interest in Kim Shin.
There was a sizable Korean population in San Francisco.
Posts documenting Kim Shin's daily life—riding his bike to work in the morning, working, and going home—would even pop up.
Whenever a YouTube video of Kim Shin was uploaded, communities would share it like breaking news and watch it immediately.
Because of this intense interest, the topic of Nikola never died down.
- Nikola does raise a lot of questions. Is it a proper company when it has no actual performance?
- That's the characteristic of future-value stocks. Who invests based on current performance?
- Still. It's a pretty suspicious company, isn't it? Just holding a ton of press conferences.
- They announce a lot of vehicle prototypes, but none are actually delivered to customers. Production plans keep getting delayed.
- Maybe that's why Kim Shin cut his losses.
- If you think about it, he got in and out at just the right time. Bought at the knee and sold at the shoulder.
- Yep. It was the right choice in terms of realizing profits and avoiding risk.
- No, it's not. Look at Kim Shin's investment pattern. He buys if he believes he has to, even when there's extreme fear. This is the man who dumped his entire fortune into the New York Stock Exchange when COVID hit.
- And he even started producing the vaccine early.
While the debate over Nikola simmered, a community moderator posted an article.
- I made some sweet profit from Nikola, but out of my faith in our idol Kim Shin, I'm selling all of it. T_T
- Faith?
- Yes. By following Kim Shin, I bought a house, a car, and am sending my kids to school. My family's life is completely different from how it was at the start of this year. But holding on to Nikola feels like a betrayal.
- If it puts your mind at ease, then you should do it.
- What are you gonna do with the money once you sell Nikola?
- I'm going to increase my investment ratio in the other stocks Kim Shin bought.
Although Nikola had been a decent investment until now, the sentiment among the Korean retail investors began to change.
- I should sell too.
- I've been investing for 10 years. I sold right when Kim Shin did. I knew I'd get arrogant if I held on to Nikola and made a bit more profit.
- My life has been in the red until now. I switched straight to Tesla and made more than I would have if I'd kept holding Nikola.
- Hey. This is the choice of the man who gave us dreams and hope. Let's sell. And find peace of mind.
- For real, I'd feel burdened if Nikola went up, and if it went down, I'd feel pathetic for doing something stupid.
- Nikola listed in early June, got a big IPO bump, then started to fall a bit in the second half of June and in July. If I had just followed him to Tesla, I would've made several times more. I'm an idiot for not trusting Kim Shin.
As the Korean retail investors began a large-scale sell-off of Nikola, its stock price started to decline.
The stock, which had tripled since its IPO, began a gradual descent. The number of retail investors moving from Nikola to Tesla, following Kim Shin, increased.
- Look at the power of us ants. I'd better get out quick.
- When we ants band together, our influence is stronger than most financial institutions, lol.
- If you're gonna sell, do it quick. If you're late, the demand will dry up and you'll lose out.
- I'm selling mine today too.
As the exodus of Korean retail investors continued, Nikola's stock price fell sharply.