From StockNews.com: Tesla Inc (NASDAQ:TSLA) saw its stock rise up to 3% on Tuesday morning, after news broke that a mega cap Chinese company has taken a significant stake in the electric vehicle and energy giant.

Tencent Holdings Ltd, perhaps best known as the parent company of messaging app WeChat, has purchased a 5% stake in Tesla. The news was uncovered via recent regulatory filing with the Securities and Exchange Commission (SEC).

Tencent paid about $1.8 billion for the stake, according to documents, and completed the purchase via an offering in March as well as on the open market. The Shenzhen-based company noted that its stake in TSLA is “passive,” meaning it won’t try to flex its muscles to push Tesla in any particular direction, nor will it seek a seat on its board.

The move could, however, open up Tesla’s foray into potentially lucrative Chinese markets. Electric vehicles are almost nonexistent in China, but with major pollution problems and a rapidly growing middle class, the country may represent a major growth market for Tesla in coming years.

Tesla has yet to officially comment on the news.

Tesla Inc shares rose $8.04 (+2.98%) in premarket trading Tuesday. Year-to-date, TSLA has gained 26.45%, versus a 4.51% rise in the benchmark S&P 500 index during the same period.

TSLA currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #2 of 24 stocks in the Auto & Vehicle Manufacturers category.

Tesla Inc (NASDAQ:TSLA) rose $5.77 (+2.14%) in premarket trading Tuesday. Year-to-date, TSLA has gained 26.45%, versus a 4.51% rise in the benchmark S&P 500 index during the same period.

This article is brought to you courtesy of StockNews.com.

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