Elon Musk has a new friend in China.
Tech and gaming giant Tencent (TCEHY) just ponied up $ 1.8 billion for a 5% stake in Tesla (TSLA).
Led by its media shy CEO, “Pony” Ma Huateng, Tencent is big. It has a market price of greater than $ 275 billion, eclipsing that of chinese e-commerce giant Alibaba (BABA, Tech30).
Tencent owns messaging app WeChat, which boasts 889 million active customers and is used for texting, paying bills, gaming and even booking karaoke periods.
Tencent can be China’s biggest video game developer and publisher, conserving a massive piece of the worldwide market. It obtained Finnish company Supercell remaining year, the maker of popular cellular games conflict of Clans and clash Royale. Tencent’s online sport revenues topped $ 10 billion in 2016.
related: Tesla seems to be to boost $ 1.15 billion as it preps for model 3
So what’s an organization known for games and messaging apps doing investing in a well-liked electrical vehicle begin up?
Tech companies at all times wish to get in on the subsequent large thing. right now, that suggests artificial intelligence and the so-referred to as internet of things, for you to play large roles within the building of driverless and linked vehicles.
“The gaming industry is really advanced in relation to artificial intelligence,” mentioned Kitty Fok, a Beijing-primarily based analyst with research firm IDC.
“Having Tencent invest in Tesla can lend a hand it combine artificial intelligence and habits,” she stated.
connected vehicles will be the next big innovation in the auto business, mentioned Ka Leong Lo, an auto analyst at Maybank.
within the close to future, “there will probably be many connections between autos, infrastructure and folks,” Lo stated. “this is the reason Tencent is taken with Tesla.”
associated: Intel buys Israeli self-driving automotive agency for $ 15 billion
The chinese language tech large can be in search of a bigger global presence.
“There are a lot more folks in the united states who understand Alibaba,” stated Fok. Tencent’s investment in Tesla “is excellent for his or her international brand.”
This isn’t Tencent’s first wager on a huge U.S. tech identify. It quietly invested in Snapchat (SNAP) years in the past, in keeping with TechCrunch. Snapchat co-founder Evan Spiegel has even praised Tencent as a task adaptation.
Tencent did not say much in regards to the pondering in the back of its Tesla investment.
“We share Tesla’s imaginative and prescient in creating a better future for the planet,” tweeted Tencent President Martin Lau, announcing the chinese firm used to be “looking ahead to working together as a supportive shareholder.”
CNNMoney (Hong Kong) First revealed March 29, 2017: 7:16 AM ET
http://i2.cdn.turner.com/cash/dam/belongings/170208100137-tesla-model-x-turo-2-120×90.jpg
latest monetary information – CNNMoney.com
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