China’s Tencent buys 5% of Tesla
The move is likely to give a lift to Tesla’s lofty goals in the China market
Tesla founder Elon Musk tweeted that he was “[g]lad to have Tencent as an investor and advisor to Tesla,” following the completion of a US$1.7 billion deal for the Chinese tech giant to buy a 5% stake in his company.
Tesla’s shares were up 3% in pre-market trading on Tuesday, reports TechCrunch.
While Chinese sales account for 15% of Tesla’s US$7 billion revenue, they have fallen short of Musk’s ambitious goals for the country, and the deal with Tencent is likely to provide some extra mojo for Tesla’s China venture.