Tencent

Tesla China and Tencent to Benefit from Joining Forces

Tesla China and Tencent to Benefit from Joining Forces

Featured image: @alvinfoo / Twitter

Tencent is a Chinese investment holding company that is one of the largest investment and venture capital firms in the world. Tencent's many services include social media, music and web portals, e-commerce, payment systems, mobile and online games, and cloud databases. Tencent owns the most widespread instant-messaging service in China, Tencent QQ, the mobile app WeChat, the largest social network in China, and the third-largest in the world by number of registered users, after Facebook and YouTube - Qzone.

In 2017, Tencent Holdings bought a 5 percent stake in Tesla for $1.78 billion, which is currently worth about $15 billion. This was a strategic partnership because the company became not just an investor, but Tesla's advisor.

At that time, Tesla only made cars in the United States and delivered them to China. But due to the high import taxes, sales growth in the Chinese market had been very slow. To rectify the situation and make Tesla cars available to the Chinese, the company needed to build a factory there.

The alliance with Tencent gave Tesla access to the best partnerships and a market advisor with exclusive contacts, experience, and local knowledge. YouTuber Solving The Money Problem discusses some aspects of this relationship in his video.

 

This is a mutually beneficial relationship. The better and more popular Tesla is, the more Tencent benefits. Notably, Tesla became the first foreign company in China to build a factory that it also entirely owns. It is clear the Chinese government was willing to pull out all the stops in efforts to support construction and the expansion of Tesla's presence in China.

The Model 3's inclusion in "Game of Peace" —or “Peacekeeper Elite,” which is Tencent’s official English name for the game — have cemented the future of Tesla in the Chinese market. The game has over 400 million downloads and over 50 million daily users.

A mysterious box that appeared in the game a few days ago has also appeared in the real world: near Giga Shanghai and the Tesla Store in Shanghai. These are serious companies attracting serious attention.



Source: Solving The Money Problem / YouTube

Tesla's infotainment system is second to none. Car owners can play games on their cars. Since Tencent and Tesla have an exclusive partnership, the company's vehicles in China provide content from Tencent.

In addition, Tesla cars are already close to full self-driving. As as soon as this game-changing feature becomes reality, drivers will instantly gain something very precious: extra time. Of course, this newly found time can be filled in all sorts of ways. One of these ways, though, will undoubtedly be via entertainment—be it a game, movie, or a chat with friends.

Tesla and Tencent are two amazing companies. Together, their alliance will bring each company tremendous opportunity going forward. Not only can Tencent adapt games to Tesla cars, but they are able to develop exclusive games and content. Tesla's recent appearance in the Tencent game is not accidental—nor is it simply clever marketing. It is much more than that: An electrifying glimpse of the wide-open road ahead.

Article edited by @SmokeyShorts, you can follow him on Twitter

About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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