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Chinese Tech Giant Invests In Tesla, Pays $1.78 Billion For 5% Stake

Tesla has a new investor, and it looks like its new shareholder paid top dollar for a small stake in the American automaker.
Tesla Model X 1 photo
Just five percent of Tesla cost the Chinese at Tencent Holdings $1.78 billion. The corporation is known for a mobile app named WeChat, and it has been recently investing in various sectors, which range from gaming to online financing.

Tesla was one of the companies that have received money from the Chinese company after it acquired a stock package, Automotive News informs.

The sale of shares by the carmaker was made to help it finance the launch of the Model 3. The affordable electric automobile is an essential product from the company, as many things rely on the success of the Model 3.

With enough money at hand, the carmaker should have everything ready for the big event, but there’s always a risk of the company encountering delays with the launch process.

Interestingly, the acquisition has made Tencent one of Tesla’s biggest shareholders. The founder of the company, Elon Musk, is also the largest owner of a single package of stocks, with a portfolio that contains 21% of the company’s shares.

Once the Model 3’ production and deliveries being, Musk’s fortune will be even greater, all thanks to the predicted rise in the value of the automaker’s shares.

This month, Palo Alto's electric prodigy will experience a transition of its CFOs, as Jason Wheeler will leave the company to pursue opportunities in public policy. As announced in February, his place will be taken by Deepak Ahuja. Mr. Ahuja was Tesla’s first CFO, and he stayed with the firm for more than seven years.

The new CFO has the role of helping the automaker scale up its operations to ensure the production of the Model 3. Jason Wheeler helped Tesla acquire SolarCity and ensuring the business remained profitable, but his replacement has important work ahead of himself as he comes back to the brand.

 
 
 
 
 

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