This is an investment that will surely benefit both, the investor and the company invested in.
Talking about Tesla, it is known for its tech-savvy products. It has produced the world's first electric sports car Roadster and is on its toes to promote the upcoming Model 3 electric cars supposed to launch in major countries around the globe. For a successful launch, the company is eagerly looking forward to raising funds and has succeeded in raising 1.2 billion dollars out of the bond with the Tencent. It is also known for its work in battery storage via its SolarCity subsidiary that provides solar panels residentially.
On the other hand, Tencent is best known for its Wechat app that a social platform used globally. Apart from that, the company is looking for a better profit sharing in other fields like gaming, entertainment, cloud computing and online financing. It has also invested in Snapchat and US-based rival of Uber, Lyft.It is one the largest technological firm in Asia. By purchasing 5% stakes of Tesla, the company will be counted amongst its top 5 investors, ie, Fidelity, Baillie Gifford, T Rowe Price and the largest shareholder Elon Musk with 21% stakes in his hands. The partnership might also help Mr. Musk to pave an easy way into the world's largest auto market, China with its electric products, and self-driving technology in the later stages. For him, Tencent stands as an advisor more than an investor. He looks forward to the knowledge of the Chinese tech giant in the businesses that the company has heavily invested in and are the future of the transportation.
