TSLA Tesla Inc

By Anne Steele 

Tencent Holdings Ltd. has taken a 5% stake in Tesla Inc., making the biggest company in China one of the largest owners of Elon Musk's cash-hungry electric car maker.

Tencent paid about $1.8 billion to take the passive stake in Tesla this month, according to a filing, amid Mr. Musk's recent push to raise money. Representatives from Tencent and Tesla weren't immediately available for comment.

Tesla shares, which have risen 26% so far this year, climbed another 3% premarket to $278.05.

Earlier this month, Tesla made moves to strengthen a fragile balance sheet amid a risky ramp-up of Model 3 production. At the time, it said it was offering $250 million in common stock and $750 in convertible notes.

Billed as a cheaper offering by a company known for pricey super cars, the Model 3 is intended to sell in much higher volumes than the current models and compete with more mainstream brands.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

March 28, 2017 08:09 ET (12:09 GMT)

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