Shares of Tesla surged after setting a quarterly record by delivering 25,000 vehicles during the first quarter. The deliveries were up 69% compared to a year ago.

The company told investors in a recent letter that it expects to hit a production rate of 5,000 Model 3 vehicles per week "at some point in the fourth quarter" and 10,000 per week "at some point in 2018."

The basic version of the Model 3 vehicle is expected to cost less than $30,000 after tax credits, although most early versions sold to consumers will have more expensive options.

Chinese tech giant Tencent Holdings has accumulated a 5% ownership stake in American electric vehicle maker and renewable energy firm Tesla.

Tencent, a conglomerate with broad assets in gaming, social media and online entertainment, disclosed in a public filing that it had purchased about 8.17 million shares of Tesla.

The company made the $1.78 billion investment during Tesla's stock offering earlier this month and through open-market acquisition of shares, according to the filing. Tesla raised up to $1.4 billion during the offering to help fund assembly of its mass-market Model 3 vehicle and pay other costs.

At more than $300 billion, Tencent's market capitalization recently surpassed the value of Chinese e-commerce giant Alibaba.