When the news emerged that Tencent had acquired a 5 percent stake in Tesla for $1.8 billion last week, the electric car maker’s stock price trended upwards, indicating that shareholders were happy with the vote of confidence from a Chinese player of Tencent’s caliber. While the deal will do little to to bolster Tesla’s cash balance ahead of a challenging year (Tencent acquired the majority of its shares on the open market -> no money for Tesla), it might help Tesla gain a foothold in the Chinese market in the long run.
As our chart illustrates, the Chinese market for electric vehicles is the largest in the world and it’s poised for further growth. As Tesla looks to ramp up its production significantly over the next few years, China may become increasingly important to the company. Having a Chinese investor might help Tesla's case in a market that is still dominated by local players.
The Statista "Chart of the Day", made available
under the Creative Commons License CC BY-ND 3.0, may be used
and displayed without charge by all commercial and
non-commercial websites. Use is, however, only permitted with
proper attribution to Statista. When publishing one of these graphics,
please include a backlink to the respective infographic URL.
The Statista "Chart of the Day" currently focuses
on two sectors: "Media and Technology", updated
daily and featuring the latest statistics from the media,
internet, telecommunications and consumer electronics
industries; and "Economy and Society", which
current data from the United States and around the
world relating to economic and political issues as well as
sports and entertainment.
For individual content and infographics in your Corporate Design,
please visit our agency website
Any more questions?
Get in touch with us quickly and easily. We are happy to help!