Clarify Tesla Agency Rumor, Sinomach Stock Price Roller Coaster

Withpaper of announcement, rumor about Sinomach exclusive agent Tesla has stopped immediately. Night of Feb 19, Sinomach has clarified that Tesla sales strategy is directly globally, which means it is nonsense that some media says Sinomach will agent Tesla exclusive. Sinomach just takes commission of Tesla to get Model S Chinese 3C certification.

On Feb 18, Sinomach announces . The announcement says that Sinomach stock price has flexure during Feb 13, Feb 14 and Feb 15 consultative trade days which accumulated divergence more than 20%, which belongs to stock price abnormal flexure.

On Feb 19, 2014, publishes report titled with < Institution Investors Know Tesla Chinese Partner in Advance, Sinomach Leaking Out?>. Sinomach believes that report hints that Sinomach has told analyst WANG Liusheng in advance about its cooperation with Tesla. Besides, report cites Merchant Security analyst WANG Liusheng report, which says that Sinomach has already got Tesla exclusive agent already. Therefore, Sinomach clarify announcement on night of Feb 19.

Sinomach says in the announcement that Tesla adopts direct sales globally, which is nonsense since report mentioned about exclusive agent of Tesla. Sinomach says the information about Sinomach getting Tesla exclusive agent already, which mentioned in , which made by Merchant Security analyst WANG Liusheng and published on Jan 25, 2014, belongs to his own guess and judgment, but not because of Sinomach providing any information. Besides, WANG Liusheng has already mentioned about Sinomach cooperation with Tesla as early as August 22, 2013 by his company research .

According to the announcement, the cooperation between Sinomach and Tesla at this moment is only about 3C certification obtained in China according to Tesla commission.

On Feb 20, a staff of President Secretary Office told reporter during interview that “Tesla sales strategy is directly, which means it does not need agent in the middle. We cooperate with Tesla is only on certification, warehouse, logistics service at the beginning. We do not have agent permission yet. Report is not true.”

As hot stocks concerns with Tesla, Sinomach has madness welcomed by capital. From the middle Jan this year, Sinomach stock price initials rising,it has hit rise day limit server time. Up to market close on Feb 19, its price has raised from 11.21 Yuan per share on Jan 13 to 23.1 Yuan per share, which has increased 106.06%. However, clarity on night of 19 is obviously different from market expectation. The next day after clarification, Sinomach stock price drops at beginning of market open and ends with 9.95% decline.