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The same Chinese company that bought League of Legends a couple of years ago just became one of Tesla’s largest shareholders.

According to a Securities and Exchange Commission filing dated March 24th, Tencent Holdings Ltd. has purchased a five percent stake in the company—8,167,544 shares to be exact.

According to TechCrunch, the deal was arranged a week earlier, and Tencent paid $1.7 billion for the shares.
The cash infusion will no doubt be welcome at Tesla.

The company’s acquisition of Solar City came with a large amount of debt, and it continues to lose money selling Model S and Model X electric vehicles—its two profitable quarters have been thanks to the sale of emissions credits to other companies.

But it has bulging order books for the Model 3, and it told investors in February that production for that car begins in July.

Fulfilling those orders in a timely manner won’t be cheap, which is where Tencent’s $1.7 billion should come in handy.
There’s plenty of reason for skepticism over that target, though.

The Model S and Model X both had plenty of teething troubles early on, and neither were built in numbers close to Tesla’s goals for the Model 3.

Tesla is also forgoing the traditional production prototype, a “beta” version of a new car that companies use to refine the product and its production process.

That’s a change of plan from last year, when the company told investors in a 10-K filing that a beta prototype Model 3 would be the company’s next performance milestone. Last week, Elon Musk tweeted a short video of a “release candidate” Model 3:
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