Home MarketsAsia Tesla shareholder Tencent backs Elon Musk despite Twitter distraction

Tesla shareholder Tencent backs Elon Musk despite Twitter distraction

by SuperiorInvest

A Tesla store in Changzhou, China in April 2022. Known as one of the world’s largest gaming and social media companies, Tencent invested in Tesla in 2017 and acquired a 5% stake for about $1.78 billion.

Sheldon Cooper | Sopa Images | Lightrocket | Getty Images

Tesla will “blow our minds non-stop” with technology even as CEO Elon Musk is distracted by Twitter, according to the executive who led the Chinese tech giant’s investment Tencent to the American manufacturer of electric cars.

Tencent, known as one of the world’s largest gaming and social networks, in 2017 he invested in Teslataking a 5% stake for roughly $1.78 billion.

“We saw tremendous potential in the company, the EV (electric vehicle) category, but also tremendous respect for how Elon ran the company,” said David Wallerstein, chief “eExploration” officer (CXO) at Tencent. CNBC in an interview Thursday.

As CXO, Wallerstein is tasked with investing in emerging technologies for Tencent.

He said that when Tencent invested, “it wasn’t so clear that they would survive and that electric cars would actually survive.”

Since then, Tesla has become one of the world’s largest manufacturers of electric cars. In 2022, it delivered 1.31 million cars.

But last year, Musk bought Twitter, a move that investors saw as a major distraction for the billionaire at a time when Tesla needed a steady hand. Tesla shares are down 62% over the past year.

Wallerstein said he still has confidence in Tesla despite the distraction.

“Obviously, if a leader is scattered across many companies, it’s hard to focus on them, and Elon has a lot of projects. I think they’re still doing a great job,” Wallerstein said.

He added that there are likely to be some competitors, but that will be “really good for the planet” as electric car sales grow.

“I would count on them [Tesla] to keep blowing into our heads what they’re doing with technology,” Wallerstein said.

Tencent is a prolific investor in many different industries, from gaming to e-commerce. However, the company recently sold part of its stake amid a tighter regulatory environment in China.

But Wallerstein is looking to invest in next-generation fields that could help fight global challenges like climate change. Tencent has invested in companies such as China Electric Vehicles Nope and the German “flying” car manufacturer Lilium.

Source Link

Related Posts

%d bloggers like this: