China’s Internet Giant Tencent Becomes One Of Tesla’s Largest Shareholders.
Teslas 5% share has been bought by the second highest valued technology company in Asia, Tencent. Filings indicate that Tencent spent around $1.7 billion to purchase about 8,167, 544 in shares making it one the largest shareholders in Tesla.
The pre-market trading saw a bump in Teslas share prices after the news came out. The purchase of the shares happened on March 17th, and as per now, the-then-worth $1.7 billion shares are now at $2.2 billion at market valuation.
Being a prolific investor that it is, Tencent has equity in many large enterprises with one of them being Snap (this years top-rated IPO). The Teslas investment by Tencent isnt that clear on strategy compared to their interests in the messaging app (Snap) as they control the biggest Chinas app-WeChat. Some of the other investments theyve made include Chinas largest taxi sought-after service-Didi Chuxing which recently opened a research lab in the US and is in the process of buying Uber China.
After making several announcements on its efforts on artificial intelligence, they made the Teslas investment public. The company managed to poach a senior machine learning researcher from their competitor Baidu to situate the researcher in their Al research lab in China. And of course, after defeating the ancient Asian Strategy Game ex-world champion this past year, Googles AlphaGo made big headlines.
Last week Tencent also made a $350 million investment in the popular video streaming and photo sharing app-Kuaishou which reports indicate should be going public in the United States this year.
Tencent has seen a good record growth having racked up to $21.9 billion in total sales in 2016. The figure represents the firms best revenue jump ever since 2012 going up by 48% with a $5.9 billion net profit increase going up to 43%.