Tags: Tesla | Tencent | China | Elon Musk

Tesla Gets Tencent Backing as China Tech Giant Buys 5 Percent Stake

Tesla Gets Tencent Backing as China Tech Giant Buys 5 Percent Stake

Tuesday, 28 March 2017 08:44 AM

Chinese Internet giant Tencent Holdings Ltd. purchased a 5 percent stake in Tesla Inc. as the electric-car maker run by Elon Musk races to bring his critical Model 3 sedan to market later this year.

Shenzhen-based Tencent paid about $1.8 billion for 8.17 million shares through Tesla’s recent stock offering and via open-market purchases, according to a regulatory filing Tuesday. The acquisition makes Tencent, the owner of the WeChat messaging app, Tesla’s fifth-largest shareholder, according to data compiled by Bloomberg.

“Elon Musk is the archetype for entrepreneurship, combining vision, ambition, and execution,” Tencent said in an email. “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.”

Tesla raised as much as $1.4 billion through a stock and debt offering earlier this month, more than initially sought, as it looked to cushion its balance sheet amid heavy spending to introduce the lower-priced Model 3. Tencent’s Chairman Ma Huateng envisions his company developing AI technology for driverless cars in the future.

Shares of Palo Alto, California-based Tesla rose 1.9 percent to $275.42 as of 8:15 a.m. in New York, before the start of regular trading.

© Copyright 2021 Bloomberg News. All rights reserved.


   
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Chinese Internet giant Tencent Holdings Ltd. purchased a 5 percent stake in Tesla Inc. as the electric-car maker run by Elon Musk races to bring his critical Model 3 sedan to market later this year.
Tesla, Tencent, China, Elon Musk
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2017-44-28
Tuesday, 28 March 2017 08:44 AM
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