Chinese internet giant Tencent buys 5% stake in Tesla

Tencent has bought a 5% stake in Tesla, making it one of the company’s biggest shareholders.

The Chinese internet giant Tencent Holdings bought more than 8 million shares in the electric-car company, worth $1.8 billion.

The move makes Tencent the fifth largest shareholder in the company. Chief executive Elon Musk remains the largest shareholder with 21% of the company.

The news led to an increase in Tesla’s share price, which rose 2.3% following the announcement. Tencent's share price also gained 0.8% in Hong Kong.

Last week, Tencent reported a record year for revenues in 2016, which grew 48% to RMB151.9 billion ($21.9 billion), while Q4 results jumped 44%.

Tencent, which owns the social messaging app WeChat, also has shares in Snap and the ride hailing app Didi Chuxing.