China’s Tencent Invests $1.78 Billion In Tesla, Gets 5% Stake

APR 5 2017 BY ERIC LOVEDAY 10

China’s Tencent Holdings is now a major stakeholder in Tesla Inc.

A recent filing shows that Tencent now owns in excess of 8 million Tesla shares, making the company a 5% stakeholder. Only T. Rowe Price, Baillie Gifford, FMR and Elon Musk own more stake in Tesla than Tencent.

Tencent

To date, Tencent has reportedly invested some $1.78 billion into Tesla. Tencent is best known for its WeChat mobile app, but the company is involved in several other projects in various sectors including cloud computing, online finance gaming and entertainment.

Tencent issued this email statement (via Bloomberg):

“Elon Musk is the archetype for entrepreneurship, combining vision, ambition, and execution. Tesla is a global pioneer at the forefront of new technologies including electric vehicles, assisted driving, shared vehicles, digitizing real-world information, sustainable energy generation and scalable energy storage.”

Elon Musk applauded Tencent’s recent investment. He went so far as to say that Tencent is more than just an investor, hinting that perhaps Tencent will become some kind of Chinese partner that could help to pave the way for Tesla in the Chinese auto market.

Source: Automotive News

Categories: Tesla

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10 Comments on "China’s Tencent Invests $1.78 Billion In Tesla, Gets 5% Stake"

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pjwood1

Cue political hey being over Chinese investment.

ffbj

Hey, it’s hay.

MikeG

I’m trying to understand what the downside risk is here–Tesla sold shares, got needed cash, Tencent expects strong ROI.

Mister G

Tencent made a smart decision. When will American firms see the light?

Timmy

You mean like Berkshire Hathaway, which invested in BYD?
(close to 10%)

Warren’s mistake!

speculawyer

I keep telling the shorts . . . as long as Elon delivers, he will have easy access to the capital markets. And it doesn’t matter if he delivers a bit late, a bit over budget, or a bit less than promised.

Don’t bet against the guy who is now commercially re-using rocket boosters for the first time in history.

Just_Chris

And the space shuttle’s SRB’s didn’t count because…

Timmy

They took forever and a fortune to “refurbish” is preparation for the next flight? Is that the right answer, or did you have another in mind?

SJC

That is the nature of a publicly traded company, anyone with money can buy stock.

Timmy

Buffett invests in BYD and tencent in Tesla, go figure.