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29-03-2017, 01:59 PM
Tencent Emerges as Musk’s China Booster With 5% Tesla Stake
by Dana Hull , John Lippert , and Selina Wang
March 28, 2017, 7:39 PM GMT+8 Updated on March 29, 2017, 10:25 AM GMT+8
Tesla Inc. Chief Executive Officer Elon Musk just gained a massive and well-connected confidant to help him better crack China’s auto market: Tencent Holdings Ltd.
The Chinese internet giant isn’t just an investor, Musk said after his electric-car maker disclosed Tencent had bought a 5 percent stake in his company for $1.8 billion. He also referred to the owner of the WeChat and QQ messaging services as an adviser.
“Tencent’s passive stake is not only a vote of confidence in Elon Musk and the future of EVs, but also may help in accessing the Chinese market,” Brian Johnson, an auto analyst at Barclays Plc, wrote in a note to clients Tuesday.
Tesla stumbled out of the gate in China, with Musk blaming his sales staff for underwhelming results and stoking fears about charging challenges soon after deliveries began in 2014. While the company has been getting better traction -- revenue from China tripled last year to more than $1 billion -- sales from the market were still less than a quarter of what Tesla made in the U.S.
More details in https://www.bloomberg.com/news/articles/...-s-model-3
by Dana Hull , John Lippert , and Selina Wang
March 28, 2017, 7:39 PM GMT+8 Updated on March 29, 2017, 10:25 AM GMT+8
Tesla Inc. Chief Executive Officer Elon Musk just gained a massive and well-connected confidant to help him better crack China’s auto market: Tencent Holdings Ltd.
The Chinese internet giant isn’t just an investor, Musk said after his electric-car maker disclosed Tencent had bought a 5 percent stake in his company for $1.8 billion. He also referred to the owner of the WeChat and QQ messaging services as an adviser.
“Tencent’s passive stake is not only a vote of confidence in Elon Musk and the future of EVs, but also may help in accessing the Chinese market,” Brian Johnson, an auto analyst at Barclays Plc, wrote in a note to clients Tuesday.
Tesla stumbled out of the gate in China, with Musk blaming his sales staff for underwhelming results and stoking fears about charging challenges soon after deliveries began in 2014. While the company has been getting better traction -- revenue from China tripled last year to more than $1 billion -- sales from the market were still less than a quarter of what Tesla made in the U.S.
More details in https://www.bloomberg.com/news/articles/...-s-model-3
Specuvestor: Asset - Business - Structure.