Tesla (TSLA) was up $7 today on the news that Tencent (TCEHY) bought a 5% stake in Elon Musk’s car company.
Tencent bought 8.2 million shares of Tesla’s shares on the open market for 1.8 billion dollars.
Tencent already has investments in AI (artificial intelligence) and self-driving cars.
Tencent owns WeChat, which is really popular in China. It could use WeChat to promote Tesla in China.
Tesla’s Chinese revenue has tripled the past year to over 1 billion dollars.
Tesla has 24 retail stores and 114 super charger stations in China. And it plans to add more.
Tesla could use WeChat’s messaging and payment system in their infotainment systems. If it does so, then Tesla owners in China could use it to pay for gas, parking and drive-thru orders.
Elon Musk tweeted today that he’s “glad to have Tencent has an investor and advisor to Telsa”
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