China’s Tencent takes 5% stake in Tesla

China’s Tencent takes 5% stake in Tesla

The Chinese technology company Tencent Holdings has acquired 5% of the capital of the US electric vehicle manufacturer Tesla for an amount of 1,777 million dollars (1,645 million euros at current exchange rates).

According to Tesla reported on Tuesday in a communication sent to the U.S. regulator SEC, the Asian company becomes one of the main shareholders of the corporation headed by Elon Musk, after acquiring 8.16 million shares.

This operation has caused a rise in the New York Stock Exchange of the shares of the Californian company, which reach a price of $ 276.05 per share (255.6 euros), representing an increase of 2.15% over the previous day.

Tesla recently launched $1.2 billion (€1.111 billion) after selling shares and convertible bonds, as part of its strategy to capture liquidity to reduce the risks arising from the rapid growth of its business, due to the launch of Model 3.

With this investment, Tencent becomes the fifth largest shareholder of the Palo Alto corporation, after its CEO, Elon Musk, as well as the companies Fidelity, Baillie Gifford and T. Rowe Price.

Rose Lewis

Rose Lewis is graduate from the University of Miami. She’s based in Miami but travels much of the year. Rose has written for NPR, Miami Herald, MSN Money and the Huffington Post. When the rose is not busy writing, She loves Reading, As a Reporter at Slimger Rose Covers Business and State.

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