Tencent just grabbed a 5% stake in Tesla

The all-electric Model 3, starting from US$35,000, is due to launch later this year. Photo credit: Tesla.

Chinese tech giant Tencent, maker of the popular WeChat messaging app, has taken a 5 percent stake in Tesla for nearly US$2 billion, according to a filing.

This makes the US$275 billion Chinese firm one of Tesla’s largest shareholders, reports TechCrunch.

Tesla’s big test

It comes months ahead of Tesla’s biggest ever test as Elon Musk’s electric automaker prepares to ramp up production far beyond its current tiny output for the US$35,000 Model 3. Tesla produced 76,230 units of its pricey Model S sedan and Model X minivan in 2016, but it’s aiming at 500,000 in 2018 as the relatively more affordable Model 3, a BMW 3-series and Mercedes-Benz C-class rival that launches later this year, takes off.

Tencent is perhaps the most prolific investor and acquirer among China’s multiple tech titans. It has stakes in Snap, Kik, and Uber arch-rival Didi, to name but three of its most high-profile targets.

The Shenzhen-based company also has a stake in NIO, formerly NextEV, which runs a Formula E racing team and is prepping a self-driving electric car for launch in 2020.

NIO’s concept car will form the basis of its first proper production car in 2020 – not including a crazy limited-edition supercar that it showed off earlier. Photo credit: NIO.

Tesla, which IPO’d in 2010 at a valuation of US$1.6 billion, is now pegged at US$45.2 billion.

The brief SEC filing doesn’t detail any possible strategic tie-ups between Tesla and Tencent that might help the automaker in the Chinese market.

See: Tencent’s biggest investments in 2016

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