A Tesla store in Changzhou, China, in April 2022. Tencent, known as one of the world’s largest gaming and social media companies, invested in Tesla in 2017, taking a 5% stake worth around $1.78 billion.
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Tesla will “keep blowing our minds” with technology even as CEO Elon Musk is distracted by Twitter, according to an executive leading the Chinese tech giant’s investment. Tencent to US electric car makers.
Tencent, known as one of the largest gaming and social media companies in the world, invested in Tesla in 2017, taking a 5% stake for about $1.78 billion.
“We see great potential in the company, the EV (electric vehicle) category but also appreciate the way Elon is driving the company,” said David Wallerstein, chief “eXploration” officer (CXO) at Tencent. CNBC in an interview on Friday.
As CXO, Wallerstein is tasked with investing in new technologies for Tencent.
He said that if Tencent made the investment, “it’s not clear that they will survive and EVs will survive.”
Since then, Tesla has become one of the largest electric car manufacturers in the world. It will deliver 1.31 million cars in 2022.
But last year, Musk bought Twitter, a move that investors saw as a major distraction for the billionaire at a time when Tesla needed a steady hand. Tesla stock is down about 62% over the past year.
Wallerstein said that despite the disruption, he still has faith in Tesla.
“Of course, if the leader is distracted in many companies, it is difficult to focus and Elon has many projects. I think he is still doing a good job,” said Wallerstein.
He added that there are few competitors, but “it will be very good for the planet” as sales of electric cars increase.
“I will trust him [Tesla] so it continues to shake up what technology is doing,” Wallerstein said.
Tencent is a prolific investor in many industries, from gaming to e-commerce. But the company recently sold some of its shares amid China’s tighter regulatory environment.
But Wallerstein is on the hunt for investments in next-generation areas that can help fight global challenges like climate change. Tencent has invested in companies such as Chinese electric vehicles Neo and the German “flying” car company Lilium.