Buffett Sells Final Stake in Chinese EV Giant BYD

Name: Buffett Sells Final Stake in Chinese EV Giant BYD
Uploaded: 2025-09-24T02:14:36.000Z
Description: Warren Buffett has cleared his entire stake in Chinese EV manufacturer BYD, concluding a 17-year investment that yielded over 20 times its initial value.

Warren Buffett has cleared his entire stake in Chinese EV manufacturer BYD, concluding a 17-year investment that yielded over 20 times its initial value.

Mary Man&Juliet Song

Published: 9/23/2025, 1:23:51 PM EDT

Warren Buffett has cleared his entire stake in Chinese EV manufacturer BYD, concluding a 17-year investment that yielded over 20 times its initial value.

Since August 2022, Warren Buffett’s Berkshire Hathaway has been steadily reducing its stake in BYD, a Chinese company focused on electric vehicles and renewable energy.

According to its latest filings, the firm completely exited its position in the second quarter, down from a holding worth $415 million (£308 million) at the end of last year.

Li Yunfei, an executive at BYD, addressed the situation in a post on the Chinese social media platform Weibo, saying: “In stock investing, buying and selling are normal practices.

“We’re grateful to Munger and Buffett for their recognition of BYD, and for their 17 years of investment, support and companionship.”

The investment began in September 2008, when Berkshire Hathaway, at the urging of Buffett’s late partner Charlie Munger, acquired 225 million shares for $230 million, equivalent to a 10 percent stake at the time.

Known for his long-term investment approach, Buffett held the position for 14 years, remaining committed through market ups and downs. During Berkshire’s ownership, BYD’s shares surged approximately 3,890 percent.

Buffett has not provided a detailed explanation for Berkshire’s decision to sell. However, in a 2023 interview with CNBC’s Becky Quick, he described BYD as an “extraordinary company,” but “I think that we’ll find things to do with the money that I’ll feel better about.”

BYD's Stock Plunges Amid Price War

As the biggest rival to Tesla, BYD reported a 29.9 percent year-on-year decline in second-quarter net profit, falling to 6.4 billion yuan (approximately $895 million). This sharp drop follows a strong first quarter, during which the company more than doubled its profit, highlighting the company’s volatile performance.

Once a key driver of aggressive price cuts across China's EV market, BYD is now feeling the impact of a prolonged price war as domestic automakers battle for market share. While the company has seen growth in overseas markets, the gains have not been sufficient to offset weakening demand at home.

The steep profit decline has amplified investor concerns, particularly following a $45 billion market loss amid a broader selloff in the stock. BYD faces mounting challenges in restoring market confidence and maintaining its position in China’s increasingly crowded EV world.

The company's domestic sales, which account for nearly 80 percent of its global deliveries, declined for a fourth consecutive month in August. In response to weakening demand, the company has revised its 2025 sales target from 5.5 million to around 4.6 million vehicles, representing a reduction of up to 16 percent, reported Reuters.