Tuesday’s filing with the U.S. Securities and Exchange Commission was met warmly on Wall Street, with Tesla stock moving up 2 percent to approach levels not seen since mid-February.
Tencent filing shows it acquired 8.17 million shares of TSLA stock.
“[Tesla CEO] Elon Musk is the archetype for entrepreneurship, combining vision, ambition and execution,” Tencent said. “Tesla is a global pioneer at the forefront of new technologies including electric vehicles, assisted driving, shared vehicles, digitizing real-world information, sustainable energy generation and scalable energy storage.”
Tencent is best-known for its popular messaging app WeChat. The Chinese government does not allow Chinese citizens to use many popular American apps while in China. WeChat is similar to the Facebook (FB) app WhatsApp. WeChat’s user base of more than 700 million is nearly on par with WeChat’s 1.2 billion users.
Tencent and other large Chinese tech companies have been aggressively investing in U.S. technology in recent years. In addition to its new stake in Tesla, Tencent has invested in Snap (SNAP), Weebly, Lyft, Cyanogen, Riot Games, Epic Games and a host of other American companies.
According to CBI Insights data, Tencent, Alibaba Group Holding (BABA), Baidu (BIDU) and JD.com (JD) had already invested a combined $5.6 billion in 48 U.S. technology companies over the past two years prior to Tencent’s new Tesla stake.
For Tesla, funding will remain critical during the company’s highly-anticipated launch period for its Model 3. Musk has said the Model 3 launch will push Tesla’s finances “close to the edge.”
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!