Tencent (TCEHY) bought a 5% stake in Tesla (TSLA)
Tesla much strengthens its presence in the Chinese automotive technology U.
DETROIT Reuters - China Tencent Holdings Ltd has bought a 5 percent US maker of electric car Tesla Inc. TSLA O for 1 78 billion, the latest investment by a Chinese Internet company on the potentially lucrative market for self-driving vehicles related services.
Tencent investment, revealed in a regulatory filing in the United States, supplies Tesla with deep ally pocketed as it prepares to launch its model of mass-market 3 shares of Tesla rose 2 7 percent to 277 45 Tuesday , closing on Ford Motor Co FN as the second largest US automaker behind General Motors Co GM N.
Tencent could also help the sale of the company U - or even build - cars in China, the world's largest auto market, analysts said.
It is certainly a strong move chess for Tesla, said Jeff Schuster, senior vice president of forecasting for researcher LMC Automotive, citing the injection of money and aid to navigation in the Chinese market.
Tesla CEO Elon Musk tweeted Tuesday Happy to Tencent as an investor and advisor to Tesla's Musk did not say what he meant by the counselor, but in a separate tweet, he noted Tesla had very little 3 model China orders, where the car has not been formally introduced.
The intermediate size model 3 is due to go on sale later this year in the United States.
The agreement extends Tencent presence in an emerging investment sector that includes self-driving electric cars, which could allow these new modes that automated services carpooling and delivery, as well as auxiliary services ranging from infotainment e-commerce.
These new technologies, and their potential to create new business models and revenue streams in the global transport sector have attracted billions of investment from three giants of the Chinese technology - Tencent, Alibaba Group Holding Ltd. Baba N and Baidu Inc. BIDU O.
In an investor note Morgan Stanley auto analyst Adam Jonas said Tuesday he would not be surprised to see Tencent and Tesla are collaborating in the development and deployment of some of these technologies.
The White House did not immediately respond to a request for comment on Chinese investment in Tesla, but President Donald Trump criticized automakers U and trade policies of China.
Founded in 1998 by entrepreneur Ma Huateng, Tencent is one of the largest Asian technology companies, best known for its WeChat mobile messaging application with a market capitalization of around 275 billion is roughly six times the size of Tesla 14 years old, including 45 billion market capitalization on Tuesday was only 1 billion shy Ford 114 years.
Tencent was an early investor in NextEV, one himself starting the electric vehicle based in Shanghai since renamed Nio, whose US headquarters in San Jose, near the base Palo Alto Tesla Tencent also funded at least two other Chinese EV startups, including future mobility in Shenzhen.
In addition, Tencent invested in Didi Chuxing, the second largest company in turn services the world behind Uber, Lyft and rival chief U S Uber.
Baidu has invested in Nio and in Uber and Velodyne, a California manufacturer of LIDAR laser sensors for self-driving cars Alibaba mobility investments include Didi and Lyft.
As Tesla fact most startup businesses backed by Tencent, Baidu and Alibaba are developing self-driving systems that could potentially be introduced in commercial carpooling fleets in the United States and China after 2020.
Tencent maintains a U S office in Palo Alto, in the heart of Silicon Valley Beijing-based Baidu and Alibaba in Hangzhou based in California also maintain offices in Silicon Valley.
Tencent holds approximately 8 2 million shares of Tesla, the automaker said it is the fifth largest shareholder, behind Musk and investment companies Fidelity and T Rowe Baillie Gifford.
To help fund the production model of the 3 Tesla has raised about 1 2 billion by selling common shares and convertible bonds earlier this month Tencent said its shares were acquired as part of the sale of shares and early March on the open market.
Musk had an approximately 21 percent at December 31
Additional reporting by Rishika Sadam in Bengaluru, Sijia Jiang Hong Kong and David Shepardson in Washington; Edited by Nick Zieminski and Dan Grebler.
Mumbai police said Saturday they had arrested the alleged mastermind behind a scam call center which targeted thousands of Americans in the US, compensation of more than 300 million Sagar Thakkar, also known as Shaggy, was arrested at most.
U S Commerce Secretary Wilbur Ross said the missile took out 20 percent of the Syrian air force More.
The amount was channeled by many party officials for distribution to voters more.
Vishal Amin also served in the administration of former President George W Bush more.
The Law Commission's report on hate speech does the opposite of what it aims to achieve more.
First America can be a main policy of the White House and fuel the stock market rally, but investors are U looking abroad for greater profits than S Plus.
CHICAGO LOS ANGELES Reuters - To meet the growing demand for high meatless certain antibiotics, high-U Chicken company S Tyson Foods Inc. producers and rivals look to wipes, bacteria reducing mist and even oregano to prevent birds Plus.
Lendbox provides fast loans by matching borrowers with lenders on its platform more.
Guajardo Mexico, negotiations can begin Nafta In July Plus.
Not that the Fed stepped Tantrum plans to reduce balance sheet more.
Designer Von Furstenberg honors women More Trailblazers.
three major indexes on Wall Street slightly lower Friday in a choppy session as investors grappled with weaker than expected employment report, the US air raid in Syria and the comments of a senior official of the Federal Reserve on the bank's cut US Central s more.
Oil traded near a one-month high Friday after a US missile strike on a Syrian air base while the dollar rose as investors dismissed a weak US employment report that is not enough to derail a strong economy or increase the prospects of interest rates more.
Roldan EBF Sees Resolution as the primary concern for most banks.
Deutsche Bank to growth shifts focus after raising 8 5B Plus.
Sen. Mike Rounds said Trump Syria strike was right Move more.
Hyundai Motor Co and Kia Motors Corp. plan to recall 1 vehicles 48 million in the US, Canada and South Korea because of engine problems, the latest blow for both companies already struggling in key markets The recall could cost both companies more.
Oil prices rose Friday, trading near a month high and closed the week up 3 percent after the US fired missiles at an air base of the Syrian government, raising fears that the conflict could spread in the oil-rich region the hardest most.
Tesla deal strengthens Chinese presence in U, tesla, many, boosts.