UPDATE: Warren Buffett’s Berkshire Hathaway has officially exited its investment in Chinese automaker BYD, marking the end of a remarkable 17-year journey that saw the investment grow over 20-fold in value. A filing from Berkshire’s energy subsidiary revealed that the value of its BYD investment was recorded as zero as of the end of March 2024, a sharp decline from $415 million at the close of 2024.
Berkshire Hathaway initially invested $230 million in BYD in 2008, acquiring about 225 million shares, which represented a 10% stake at that time. The company’s exit comes after it began selling shares in 2022, following a dramatic rise in BYD’s share price, which skyrocketed more than twentyfold over the years.
This significant move was first reported by CNBC on Sunday, but Berkshire has not yet commented on the decision. In response, Li Yunfei, BYD’s general manager of branding and public relations, expressed gratitude to Berkshire for its “investment, help, and companionship” over nearly two decades. Yunfei characterized the sale as a “normal” stock investment trade.
The exit from BYD comes at a critical time for the company, which has recently faced challenges. For the first time in three and a half years, BYD reported a fall in quarterly profits amid a government campaign targeting price wars in the automotive sector. Domestic sales, which account for nearly 80% of BYD’s global shipments, have now declined for four consecutive months as of August. As a result, BYD has slashed its annual sales target by up to 16%, revising it down to 4.6 million vehicles.
As this developing story unfolds, all eyes will be on how BYD navigates the changing landscape without one of its most prominent investors. The implications of Buffett’s exit could reverberate through the electric vehicle market, potentially impacting investor confidence and market dynamics as BYD strives to regain momentum in a highly competitive environment.
Stay tuned for more updates as this situation develops.