Tesla store in Changzhou, China in April 2022. Tencent, generally known as one in every of the world’s largest gaming and social media corporations, invested in Tesla in 2017, acquiring a 5% stake for roughly $1.78 billion.
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Tesla will “amaze us” with technology whilst CEO Elon Musk is distracted by Twitter, based on the chief who led the Chinese tech giant’s investment Tencent to the American manufacturer of electrical cars.
Tencent, generally known as one in every of the world’s largest gaming and social media corporations, invested in Tesla in 2017, taking a 5% stake for roughly $1.78 billion.
“We saw great potential throughout the company, in the electrical vehicle (electric vehicles) category, but additionally great respect for the best way Elon ran the corporate,” said David Wallerstein, director of “eXploration” (CXO) at Tencent. CNBC in an interview on Thursday.
As CXO, Wallerstein is tasked with investing in emerging technology for Tencent.
He said that when Tencent made the investment, “it wasn’t so clear in the event that they would survive and whether electric vehicles would actually survive.”
Since then, Tesla has change into one in every of the world’s largest producers of electrical cars. It delivered 1.31 million cars in 2022.
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But last yr Musk bought Twitter in what investors saw as an enormous distraction for the billionaire at a time when Tesla needed a gradual hand. Tesla shares have fallen about 62% over the past yr.
Wallerstein said that despite the distraction, he still has confidence in Tesla.
“Obviously, if the leader is scattered across multiple corporations, it’s hard to focus, and Elon has multiple projects. I believe they’re still doing an excellent job,” Wallerstein said.
He added that there’ll likely be a couple of competitors, but it would be “really good for the planet” as electric automobile sales will increase.
“I might count on them [Tesla] to proceed to amaze us with what they’re doing with technology,” Wallerstein said.
Tencent is a prolific investor in many various industries, from gaming to e-commerce. But the corporate recently sold a few of its stake in a tightened regulatory environment in China.
But Wallerstein is looking to speculate in next-generation areas that might help combat global challenges resembling climate change. Tencent has invested in corporations like China’s electric vehicle wow and the German “flying” automobile company Lilium.