NETRALNEWS.COM - Elon Musk’s futuristic ventures and risk-taking often draw mixed receptions in the U.S. In China, tech-industry leaders and investors hail him as a genius and visionary worth cheering on.
They buy Tesla cars and stock, and see investing in his projects as an honor. In the cult of personality that surrounds Mr. Musk in China, tech leaders are proud to be members.
So it comes as no surprise to them that China’s most valuable company by market capitalization, the social-networking and games juggernaut Tencent Holdings, invested $1.8 billion in Mr. Musk’s electric-car maker, Tesla.
“He’s not an ordinary genius: There are less than 10 people alive who can do what he does and think what he thinks. He is most likely the next Thomas Edison or Jeff Bezos in this generation,” says Joe Chen, chief executive of social-networking and financial-technology company Renren.
Zeng Liqing, a Tencent co-founder and angel investor, says he has built a large position in Tesla stock in the past few years. He spent over $150,000 for a deep-blue Tesla Model S with almost every accessory on offer.
He invested in Hyperloop One—a venture that uses a technology conceptualized by Mr. Musk: a levitating pod inside a tube to zip people and cargo between cities at near-sonic speeds.
When The Wall Street Journal broke the news this week about Mr. Musk launching Neuralink, a startup that aims to connect brains with computers, Mr. Zeng kicked himself. He has had a similar idea for years but only talked about it. With Mr. Musk getting a jump, “now I need to find a channel to invest in this project,” says Mr. Zeng, who retired from Tencent in 2007.
The adulation seems paradoxical for an industry whose success up to this point has come largely from imitation—building the Google of China, the YouTube of China and the Facebook of China. Firewalls, regulations and other barriers kept foreigners from penetrating the Chinese market.
Tencent’s first popular product, instant messenger QQ, was a copycat of Israel’s ICQ. QQ was initially named QICQ. In many cases, these Chinese imitators made notable improvements on the originals.
But market forces are laying bare their innovation deficit and make Mr. Musk’s boldness compelling. Growth in online users is slowing, and smartphone penetration is already high. Many tech businesses have to work harder to survive.
True innovation, not just incremental tweaks in efficiency, is needed for those who want to leave a mark on the world. Pony Ma, Tencent’s co-founder and CEO, said at a press conference in March that the No. 1 thing that keeps him up at night is being left behind technologically.
Tencent’s investment in Tesla is passive, so it doesn’t come with a board seat. Neither company is saying anything about helping each other in technology. (Asked to comment for this column, Tencent didn’t respond and Tesla declined.) Tencent is already invested in several new-energy vehicle ventures.
By taking a stake in Tesla, Tencent is signaling to the global tech community its eagerness to invest in cutting-edge technologies, people close to the company say. “The signal is, ‘Come to us if you’ve got an innovative idea,’ ” a person close to Tencent says.
Besides, that person says, “Pony is known to have a soft spot for geeks.”
Chinese have been obsessed with foreign tech leaders for decades. Bill Gates was treated like a rock star when he visited China in the 1990s and still draws crowds at conferences.
Such admiration is rooted in the Chinese education system’s utilitarian approach to knowledge. Scientists and engineers are considered more useful to society than writers and artists. Scientists and engineers who can make money? They’re the greatest.
Lei Jun, co-founder and chief executive of smartphone maker Xiaomi, idolized Apple co-founder Steve Jobs and adopted his signature black turtlenecks and bluejeans at product launches.
After meeting with Mr. Musk in Silicon Valley in 2014, Mr. Lei gushed on social media: “Compared with Elon Musk, we’re doing what everybody else can do. He’s doing what nobody can think of.” Mr. Lei was one of the earliest Tesla owners in China.
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