The Chinese Tech Giant has become one of largest shareholders in Tesla, acquiring a 5% stake for an investment of around $1.7bn.
This is a continuation of the Tencents investment push in America having invested in the SNAP IPO, as well other start-ups. Tesla and Snap now join the Tencent investment portfolio that features some of Chinas largest tech companies which include Wechat and Didi Chuxing, which is in the process of taking over Uber China.
The SEC filling states that on March 17 Tencent acquired 8,167,544 shares of Tesla, with these now having a market value of over $2bn. The news of this investment pushed the American automotive giants pre-trading share price to rise by 3%.
Tencent is now Chinas second largest company having experienced its largest revenue jump for half a decade, a 48% increase in 2016 compared to the year before. Keep your eyes on Tencent and expect more investments from them over the next 8 months.