Fred Lambert, Electrek.co
March 28, 2017
Tesla’s stock was up 3% this morning in pre-market trading after the company disclosed through a SEC filing that Tencent, a giant Chinese holding firm, has been accumulating stock in the electric car company for a total 5% passive stake worth over $2.2 billion at the current price.
Tesla CEO Elon Musk said that he is “glad to have Tencent as an investor and advisor to Tesla.”
The company has been purchasing stock following Tesla’s latest stock offering earlier this month, which likely facilitated the offering. It paid ~$1.8 billion for the entire stake on the open market.
They wrote in the SEC filing released this morning:
The 8,167,544 shares of Issuer common stock were acquired by the reporting persons in a registered offering of common stock by the Issuer on March 17, 2017 and through open market purchases, for an aggregate purchase price of $1,777,842,836 (including commission).
Tesla isn’t Tencent’s first big investment in electric vehicles – though it could be its biggest so far in the field.