On June 5, 2017, Bloomberg News reported that, “China plans to halt issuing permits to produce electric vehicles because of concern that additional approvals may lead to a glut in the world’s biggest auto market, according to people with knowledge of the matter.”
On June 19, 2017, Bloomberg News reported that, “Tesla, Inc. is close to an agreement to produce vehicles in China for the first time, giving the electric-car maker better access to the world’s largest auto market, according to people familiar with the matter.”
What is an investor to conclude? Good question, but what is clear is that investing on headlines can be tricky. It may be more appropriate to drill a little bit deeper and do some serious research, before committing funds.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA®