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Tesla deal boosts Chinese presence in US auto tech

Tesla deal boosts Chinese presence in US auto tech

Tesla-deal-boosts-Chinese-presence-in-US-auto-tech

China’s Tencent Holdings Ltd has bought a five per cent stake in US electric car maker Tesla Inc for US$1.78bn, the latest investment by a Chinese internet company in the potentially lucrative market for selfdriving vehicles and related services. Tencent’s investment, revealed in a US regulatory filing, provides Tesla with a deep-pocketed ally as it prepares to launch its mass-market Model 3.

Tesla’s shares rose 2.7 per cent to US$277.45, closing in on Ford Motor Co as the second most- valuable US auto company behind General Motors Co. Tencent also could help the US company sell – or even build – cars in China, the world’s largest auto market, analysts said.

American electric carmaker Tesla recently became the second-largest American automaker by market value after General Motors, outgrowing Ford Motor thanks mainly to brisk shipments of its electric vehicles.