Institution Investors Know Tesla Chinese Partner in Advance, Sinomach Leaking Out?

With stock price soring, Sinomach Automobile Co., Ltdfinally admits its cooperation with Tesla.

On night of Feb 17, Sinomach Automobile Co., Ltd (hereinafter referred to as Sinomach) announces that the company, as the only one multi-brands imported car integrated business provider, has accepted Tesla Motors’ commission to apply for China Compulsory Certification for Tesla Model S.

Stimulated by the good news, company stock price rises 10% up to day limitation. It ends with 21.99 Yuan/ share. The stock has raised as much as 76.34% in recent one month.

It is noteworthy that as early as Jan 27 this year, just after Tesla announce its price in Chinese market, WANG Liusheng, an analyst of Merchant Security, says in report that“Tesla price is lower than market expectation. Sinomach has its advantage as a wholesales dealer.”

WANG Liusheng points out that Sinomach owns professionalability, government relationship and capital on imported automobile area. The company is the only one takes the entire supply chain of imported automobile. International companies normally are willing to cooperate with the company at the beginning of their business development period in China. Asearly as Chrysler, Volkswagen, or to 2 years ago Ford project, and to recent Tesla, they all cooperate with Sinomach at the beginning when they enter Chinese market.

What’s more interesting, WANG Liusheng mentions that Sinomach will benefit from Model S sales open up since it is the “exclusive agency”.

However, according to Sinomach announcement at present, the company only accepts Tesla 3C application, but does not mention about whether or not “exclusive agency”. Therefore, where does Merchant Security information comes from?

For this purpose, reporter has contacted with security department of Sinomach. A staff tells reporter that “institution information source shall confirm with the institution, company information subjects to company announcement.”Meanwhile, the staff confirms that Tesla only cooperate with Sinomach with 3C certification at present. Further cooperation shall subjects to company announcement later.

Soon afterwards, reporter dials Merchant Security analyst WANG Liusheng, but nobody answer the phone.

According to the staff of Sinomach security department explain, the reason for do not publish cooperation with Tesla is because the company believes it does not belong to company“important information”. And the reason for why Sinomach publishes the announcement now is because that close price deviation has accumulated more than 20% during successive 3 days.