Chinese technology giant Tencent Holdings Ltd. has bought a 5% stake in electric car and solar firm Tesla Inc., according to a regulatory filing submitted Tuesday. Tencent now owns 8.17 million shares of Palo Alto-based Tesla, making it the company’s fifth-largest shareholder, according to Nasdaq. “A Chinese shareholder such as Tencent could well improve the potential for marketing in China,” said Daniel Rosen, a partner at the Rhodium Group, an economic research firm. Officials also complained that some Chinese companies were investing blindly in sectors with weaker strategic value, such as sports and entertainment. It’s also plausible that Chinese officials approved of the investment in Tesla, despite the currency concerns.

Source: Los Angeles Times March 28, 2017 19:40 UTC