Chinese firm Tencent buys five per cent stake in Tesla


What did the firm spend?

The Chinese tech firm Tencent has bought a five per cent stake in electric car maker Tesla, it has spent a total $1.78bn (£1.4bn).

Tencent is behind the mobile app WeChat. The business has been investing into a number of different sectors. This includes gaming, entertainment, cloud computing and online financing.

Following this announcement shares in Tesla rose 2.7 per cent in pre-market trading.

Tesla has a range of electric cars, this includes both the Model S and Roadster.

Tesla has seen shares rise more than 18 per cent in the last 12 months.

The firms chief executive, Elon Musk remains the majority shareholder, he had a stake of around 21 per cent at the end of 2016.