>> Tesla attracting some extra cash Tuesday, with a major investment from Tencent. The Chinese tech giant buying a 5% stake in Elon Musk's electric car company, even as Tesla faces questions about its ambitious production goals. Tesla shares moving up 3% on the news, making it the second most valuable US auto company after GM, with a market cap of $46 billion.
Reuters correspondent Paul Lienert, in Detroit, says both companies tend to benefit from this deal.>> Tencent investment gives Tesla an extra cash cushion, just as Tesla is launching its new mass market Model 3 sedan. It also boosts Tencent's presence in the expanding, transportation services market, everything from self driving cars to ride sharing.
>> Tencent best known for its WeChat mobile messaging app, is one of Asia's largest tech companies, and the deal comes at a time when many of its Chinese rivals are making similar forays into auto companies.>> This deal lends weight to investments made by the big three Chinese tech giants: Tencent, Alibaba, and Baidu.
Those three companies have invested billions of dollars in new self driving electric vehicle companies in the US and China. Those new self driving electric car companies including Tesla, could provide a gateway to a whole new range of transportation services, including automated ride sharing and automated deliveries.>> Shenzen based Tencent is now the fifth largest shareholder in Tesla, CEO Elon Musk remains Tesla's largest shareholder, with a little more than 20% of the company.