Chinese Tech Company Buys 5% Stake in Tesla

Tesla Inc. says Tencent Holdings Ltd., a Chinese social network giant, has invested $1.8 billion in the electric carmaker.

Tencent, best known for its WeChat mobile app, now owns more than 8 million shares in Tesla, giving it a 5% holding in the company. CEO Elon Musk, with a 21% stake, is Tesla's largest shareholder.

Analysts note the investment could help Tesla create a manufacturing presence in China. Tesla tripled its sales in China last year to more than $1 billion.

Shenzen-based Tencent also has provided financial support for two electric vehicle startup companies: Future Mobility Corp. and NextEV Inc. The Chinese company also has made recent investments into cloud computing and the entertainment, gaming and online financing industries.