New York — Tesla, the California-based electric car-maker, said on Tuesday that Chinese tech giant Tencent Holdings had acquired a 5% stake for $1.78bn. The purchase, revealed in a US regulatory filing, pushed Tesla’s stock higher in early trading, making it the second most valuable US automotive company ahead of Ford but behind General Motors. The deal gives Shenzhen-based Tencent a growing presence in the rapidly expanding future mobility sector, with investments in US and Chinese start-ups that provide ride-sharing services and are developing self-driving electric vehicles. Tencent’s investment also provides Tesla with an additional cash cushion as it prepares to boost production volume and launch its Model 3. Tesla’s shares were up 2.6% at $277.19 in early trading. Founded in 1998 by entrepreneur Ma Huateng, Tencent is one of Asia’s largest tech companies, best known for its WeChat mobile messaging app. With a market capitalisation of about $275bn, it is roughly six times the si...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.