Tesla : Chinese Tech Giant Acquires 5% Stake

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Tesla really can’t stop being in the news for the good, bad and ugly.

This time around its for a good reason.A Chinese firm -Tencent Holdings has acquired a 5% stake of the company.

I know you are eager to know how much it cost ,let me ease your anxiety .The deal cost $1.78 Billion .

Truth be told its coming at a very good time for Tesla ,because they need additional cash cushion as they prepare to boost production.

Tencent was founded in 1998 by Ma Huateng,they are one of Asia’s largest tech companies.

I know by now the question on your mind is -“Who are they, really ?”.They are best known for the popular mobile messaging app,Wechat.They have also invested in other projects like NextEV(now Nio) and Future Mobility .Both companies also very active in developing self driving electric cars.

They have also invested in Didi Chuxing, the world’s second-largest ride services company behind Uber, and in Lyft, Uber’s main U.S. rival.

Tencent now owns approximately 8.2 million shares in Tesla. Tencent is currently the fifth-largest shareholder in Tesla, behind CEO Elon Musk and investment companies Fidelity, Baillie Gifford and T. Rowe Price.

Musk has a stake of about 21 percent,making him Tesla’s top shareholder.

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