Chinese Web Giant Tencent Purchases 5% Of Tesla For $1.8 Billion Ahead Of Model 3 Launch
If there’s anyone who is keeping things interesting in the tech world, it’s Elon Musk. Steve Jobs is dead and nobody’s taking the right risks or making the right calls. Tesla has changed the way we think about electronic cars and alternative energy. He captured the electric car market perfectly and at the right time. Now, we’re learning that Chinese company Tencent has purchased a stake in Tesla. Take a look below to find out more.
Chinese Internet Giant Tencent Buys 5% Stake In Tesla For $1.8 Billion At Just The Right Time
Tencent is a well known company in China. It’s WeChat is the company’s most popular chat app that’s caused quite a bit of changes here as well. Apple’s changes to iMessages are claimed to follow this model, which adds a lot of color to the app. Now, Tencent’s ready to enter the automobile market in the form of investment. The company’s investment in Tesla comes at a critical time for the company. Tesla is due to launch the Model 3 next week.
The Tesla Model 3 has a lot of expectations riding around its launch. Tesla won’t make production prototypes for the car and will race straight ahead to launch. The car was unveiled last year and carries a price tag of $35,000. Musk is also using the strong interest of his employees for the car, to the company’s advantage. The first releases of the Model S will be for employees only making for a good approach towards product testing.
Of course, whether Tesla’s able to use the funds directly depends on where Tencent made the purchase at. If it bought the shares on the open market, then the funds wouldn’t have made it into the company’s coffers. The Chinese company isn’t the only one to invest in the U.S. Alibaba and Baidu are two other Chinese companies which have an active investment presence in the country. Tesla isn’t Tencent only investment either. The company has also invested in at least three electric vehicle startups and two ride sharing companies.
Eventually, the company hopes to gain a stronger presence in the growing autonomous driving and ride sharing sphere which will take hold soon. A lot of companies, including Tesla have been working quite hard to make autonomous vehicles a reality. Thoughts? Let us know what you think in the comments section below and stay tuned. We’ll keep you updated on the latest.