Chapter 999
The Implementation of FSD, Brother Boatman's Decision
This reaction lasted for less than a second, but Wang Donglai saw it clearly.
Masla knew better than anyone what this number represented.
Currently, the average price of power batteries worldwide is still much higher than this level. If Xuanwu batteries can really drop to this level, it means that electric vehicles equipped with Xuanwu batteries will have a huge competitive advantage in terms of cost, while models in the same class that still use traditional batteries may not even be able to catch up in terms of price reductions.
Tesla's Shanghai factory is the core stronghold of the market for producing high-volume models.
He poured a lot of effort into every step of the process, from site selection to production.
But now it's stuck in an awkward position. If it continues to use its own batteries, the cost competitiveness and performance gap will only widen. If it fully switches to Xuanwu batteries, the increased costs will also squeeze profit margins.
Keeping it is not an option, nor is selling it.
Masla leaned back on the sofa, tapping his fingers on his knees, his eyes, described by global tech media as "able to see into the future," were now rapidly calculating.
He was calculating something else, something deeper than the price of batteries.
The Shanghai factory was a project he personally spearheaded. From negotiations to groundbreaking, from production line debugging to mass production ramp-up, every step embodied his ambition for the Chinese market.
But now, this factory is not facing competitors, but rather a reshaping of the supply chain logic.
If Xuanwu Battery's production capacity really does increase several times and prices continue to fall, as Wang Donglai said, then the significance of the Shanghai factory continuing to maintain its own battery production line will become increasingly diminished.
Instead of waiting for it to depreciate, it's better to turn it into an asset.
An asset that can be exchanged for something of greater value!
He picked up his coffee cup and realized that the coffee had gone cold.
The bitter liquid slid down his throat, but it made his thoughts clearer.
He put the cup back on the table, looked up at Wang Donglai, and his voice regained its usual composure, but this time the composure did not contain a test, but a decision.
“Mr. Wang, the Shanghai factory is my life’s work. From the start of construction to now, it is Tesla’s most efficient factory in the world and a key hub for opening up the Chinese market.”
"But frankly, its structural advantage is being eroded by your battery cost curve. If the future trend is as you just described, then there will be less and less sense for the Shanghai factory to continue using its own batteries."
"Instead of letting it slowly depreciate under the pressure of industry logic, I'd rather redefine its value. We don't like beating around the bush, so are you interested in this?"
Wang Donglai raised his eyebrows slightly, without much reaction, but leaned forward slightly, picked up the cup of Longjing tea that had gone cold, and took another sip.
This is exactly what he was waiting for. Or rather, he deliberately brought up the long-term trend of battery price reductions just now, waiting for Masla to bring up the Shanghai factory on his own initiative. But he didn't reveal his hand immediately.
Name your price.
Wang Donglai put down his teacup, his tone as if he were inquiring about the price of a piece of land.
Masla stretched out three fingers, not 300 million, but a 30% price increase.
"The complete asset package of the Shanghai factory, including land, factory buildings, equipment, and supply chain, is valued at far more than the price you offered. But I will not sell it at the original price; I will offer a 30% premium on top of a reasonable price."
"The value of Shanghai is not just a factory; it is a symbol of Tesla's localization capabilities in China. What you are buying is not just the production line, but this strategic location."
"Believe me, the total value of the complete assets of the Shanghai factory—land, factory buildings, equipment, and supply chain network—far exceeds your imagination."
Wang Dong glanced at Masla, neither nodding nor shaking his head.
He held the teacup in his palm, his thumb gently rubbing the rim.
With a slight smile on her lips, she said confidently, "I think we can have another way of cooperating."
"For example, I can help you launch Tesla's FSD, the full self-driving software, in the Chinese market."
These words were like an electric current, shooting straight up Masla's spine.
FSD.
This is Tesla's biggest gamble on its future.
He began rolling out the FSD Beta version on a large scale in North America last year, but in the Chinese market, FSD has been stuck on the dual hurdles of data compliance and regulatory approval.
It's not that the technology is inadequate, but rather that the technology originated from him; that's the real problem.
He was well aware of this.
Now, Wang Donglai has brought it up himself.
Masla leaned back on the sofa, squinted, and fell into deep thought.
I have to say, he was tempted.
Upon hearing this, Wang Donglai spoke up again, saying, "Data cannot leave the country; this is the bottom line. Data needs compliant channels, localized computing power support, and an approved technical partner with regulatory agencies. Tesla cannot do this on its own, at least not in the short term, but Galaxy Technology can!"
"I don't think Mr. Ma would question that."
Masla's eyes lit up. He thought of Galaxy Technology's status in China. It wouldn't be difficult for Galaxy Technology to achieve this.
Thinking of this, Masla was completely tempted. Forcibly suppressing his excitement, he asked, "What are the conditions?"
"I will provide a complete solution for the FSD deployment in China, including localized data storage, regulatory compliance interfaces, and the AI computing platform, all provided by Galaxy Technology. All autonomous driving data generated by Tesla vehicles operating in China will be stored within China and subject to regulatory review—this is the premise. In exchange, the Shanghai factory will be sold at depreciation!"
Wang Donglai's voice was calm as he added the final piece of the weight.
Masla remained silent, his mind racing with calculations.
A factory is nothing special, especially this Shanghai factory, which was a project for which the city made multiple concessions to attract Tesla. The price Tesla paid was negligible.
The real meaning of this move is that once Tesla abandons the Shanghai factory, it is tantamount to handing over its lifeline to Wang Donglai.
This is the most important point.
Masla frowned and thought for a long time, and the atmosphere in the office became particularly heavy.
On one hand, there's the implementation of FSD (Full Self-Driving), and on the other hand, there's building a self-owned factory. The relative importance of each is actually quite clear; the difficulty in making a decision lies in the development path they represent.
Such a significant issue is no simple matter when it comes to a giant like Tesla.
Now, it is clear that Masla will have to make the decision on the spot.
FSD has been launched in China.
This is something he's always dreamed of having.
China is the world's largest market for new energy vehicles, and Tesla has millions of vehicles in China.
If FSD can be implemented in China, it will not only mean massive subscription revenue and value-added profits, but also that Tesla's AI can absorb a huge amount of training data in China's complex urban road conditions, which is the real gold mine.
The Shanghai factory, broadly speaking, is merely one link in the self-manufacturing process. With this link, costs can be better controlled and profits can be earned.
After much deliberation, Masla made up his mind.
“Mr. Wang, do you know what FSD means to me? In my heart, it’s not a feature, not a subscription revenue, it’s the most important chip I’m betting on Tesla’s future.”
“From the very first line of Autopilot code in 2014, I have believed that autonomous driving is not an incremental improvement, but a complete revolution. In North America, FSD has already driven more than three billion miles. But we have been unable to enter the Chinese market, the world’s largest new energy vehicle market.”
"I firmly believe that the market data in China will fully accelerate the implementation of this technology, and now that Mr. Wang has offered such good terms, I have no reason to refuse."
“In my view, this is not just an asset transaction, but a strategic collaboration between Tesla and Galaxy Technology in the field of intelligent transportation. We each hold two pieces of the puzzle: FSD on the ground, unmanned aerial vehicles in the low-altitude layer, space exploration spacecraft in space, and Xuanwu batteries in the energy layer. But only when they are put together can we see the complete picture.”
Masla suddenly said this, for reasons unknown.
Wang Donglai laughed and said in a serious yet calm tone, "Low-altitude airspace is the backbone of the next generation of transportation, the ground is the foundation, and energy is the base. These three layers combined form a complete urban structure. Galaxy Technology does not manufacture cars, but we provide the underlying technologies that all cars need."
"We also welcome the emergence of competitors, because a healthy and dynamic market cannot be created by a single monopolistic enterprise."
“Once FSD is implemented in China, you will gain access to a massive amount of training data on complex road conditions. This data is not just icing on the cake, but a fundamental leap in capabilities. The diversity of urban road conditions, traffic density, and edge scenarios in China are something that North America cannot provide. I look forward to the official launch of your company's FSD and bringing more and better user experiences to consumers in China.”
Wang Donglai spoke very seriously and sincerely.
This wasn't just him saying nice things; it was his true feeling.
His desire to help Tesla's FSD be fully implemented stemmed from this consideration: when Tesla was initially allowed to enter the Chinese market, the intention was to let Tesla act as a catalyst, creating a "catfish effect."
Currently, although Galaxy Technology holds a leading market position, a monopoly cannot fully stimulate market development.
However, Tesla's disruption will inevitably force domestic manufacturers to accelerate their research and development.
Wang Donglai extended his hand and shook hands with Tesla.
No one knew that a major decision affecting the global field of intelligent driving would be made so easily with just a few words from the two of them.
……
While Wang Donglai and Masla were exchanging ideas, another game was quietly unfolding.
Liao Qingfeng led the boatman and Zeng Qun to the two reception rooms on the left and right respectively.
This arrangement is not random. He has to win two negotiations today, one of which is cooperation, and the other may also be cooperation, but it may not be.
The phrase "two paths" that Wang Donglai had mentioned to him before had been mulled over in his mind countless times, and now it was time to put it into practice.
BYD's Boatman was wearing a dark gray jacket today, and had just come out of the negotiation meeting. He looked quite relaxed.
BYD itself is a major customer of Xuanwu Battery, and Fudi Battery is also an OEM for Xuanwu Battery. These two relationships combined make him more comfortable in this negotiation than Zeng Qun.
"Mr. Liao, I personally agree to your investment in BYD Battery."
“Ferdi was nurtured by BYD. From the first blade battery rolling off the production line to later becoming an OEM for Xuanwu batteries, the team was BYD's team, and the production line was BYD's production line. Handing it over, even if it's just a partial stake, might seem to some as tearing a hole in BYD's industrial chain, but I see further ahead.”
Hearing what the boatman said, Liao Qingfeng became interested and asked, "What did President Wang say?"
The boatman's expression became extremely serious, and he said in a solemn tone, "I've been working in technology for decades, and one belief has never changed: the ultimate goal of technology is not products, but changing the way humans live. From batteries to cars, and from cars to energy storage, every step BYD has taken has followed this belief."
"But what Galaxy Technology is doing—lithography factories, Xuanwu batteries, Xuan Nu spacecraft, brain-computer interfaces, and lunar bases—is not about making a better product, but about opening a door to a completely new form of civilization."
He paused for a moment, then looked up at Liao Qingfeng. His eyes held no calculating intent like in business negotiations, only a certainty almost unique to engineers.
"If this door is really opened, transportation on the Earth's surface, whether it uses oil or electricity, four wheels or six wheels, may no longer be the mainstream."
"Human physical movement will rise from the ground to low altitudes, and from low altitudes to near-Earth orbit. When that day comes, it won't matter who owns the controlling stake in Fudi Battery; what will matter more is which side I'm on as I open that door."
"So the equity cooperation with BYD is not about you tearing apart BYD's industrial chain, but about me putting a core asset into Galaxy Technology's system to bind the future of both parties in a deeper way."
"But there is one thing I hope Mr. Liao can agree to, or rather, understand."
"That means BYD is willing to let Galaxy Technology become a shareholder of Fudi, but I don't want it to be a full acquisition. Fudi's team and production lines were raised by BYD itself. If I hand them all over, I won't be able to explain it to my brothers."
Liao Qingfeng smiled slightly and said, "I can promise you that, Mr. Wang. Our idea of investing is not to control your company, but to better integrate resources, improve product standards, and bring better products to consumers."
"Of course, we only need to retain the final say on major matters and be able to determine the company's direction, and that's enough."
"Then, the factory's management standards, employee benefits, and so on are all aligned with Galaxy Technology's own factories."
Although the boatman had expected this, he still sighed inwardly when he heard Liao Qingfeng say that.
He had guessed that this would happen.
Despite possessing groundbreaking products like the Xuanwu Battery, Galaxy Technology's profits have remained within a normal range, rather than driven by profit maximization.
Honestly, he, the boatman, couldn't do that. (End of Chapter)