Chinese technology firm, TenCent, have spent $1.8 billion (RM7.9 billion) on purchasing a 5% share in electric automaker, Tesla.
The recent announcement came days after Tesla raised roughly $1.25 billion by selling off shares and convertible debt before it prepares to introduce its first mass-market sedan, the Model 3. The investment also gives TenCent another foothold in a growing industry.
TenCent has invested in a number of areas, including mobile apps, gaming, digital music and ect. Recent investments have included Snapchat-owner Snap and Uber rival – Lyft.
The company has also backed up several electric vehicle companies in the past like NextEV, a Shanghai-based start-up which since has rebranded itself as Nio and Didi Chuxing, China’s largest taxi on-demand service.
Recently TenCent Chairman Ma Huateng said he could see his company getting involved in developing artificial intelligence (AI) technology for driverless cars in the future.
So its backing of Tesla can be seen as a vote of confidence in Elon Musk and his ambitious plans to produce affordable electric cars, and later fully self-driving vehicles.
Looking forward to working together as a supportive shareholder!
— Martin Lau (@martincplau) March 28, 2017
Source: TechCrunch, BBC
