Warren Buffett’s Berkshire Hathaway trims its stake in Chinese EV maker BYD to 6.9% (2024)

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How much stake does Warren Buffett have in BYD? ›

On July 16, Berkshire Hathaway trimmed its stake in BYD to 4.94%, down from 5.06%, according to a Monday filing on the Hong Kong stock exchange.

Berkshire recently sold 1.3 million Hong Kong-listed BYD shares for HK$310.5 million ($39.8 million), according to a filing on Monday with the Hong Kong stock exchange. That reduced its stake in BYD's issued H-shares to 6.90% from 7.02%.

And of course, let's not forget Warren Buffett's stake in the company. Despite Berkshire Hathaway (BRK.B) trimming its BYDDY holdings in recent quarters as it builds a massive cash hoard, the Buffett-run conglomerate still holds a 4.9% stake in BYDDY via its equity portfolio, per mid-July data.

BYD overtook Tesla, the U.S. EV maker run by billionaire Elon Musk, in battery-EV sales in the fourth quarter of 2023. Since that feat, the stock is down. Recent price cutting, elevated inventories, and the disappointing fourth-quarter profit outlook all underscore how tough competition is getting among EV makers.

BYD (BYDDF)'s analyst rating consensus is a Strong Buy. This is based on the ratings of 10 Wall Streets Analysts.

Even though BYD's car manufacturing takes place in mainland China, its largest sales market, it is a publicly traded entity with a growing U.S. footprint. Some 60% of its stocks are held by U.S. investors, including an almost 10% share once owned by Warren Buffett's Berkshire Hathaway group.

Buffett's holdings in the carmaker are down more than 70% amid increasing technology and trade tensions between the United States and China. Investment mogul Warren Buffett has quickened the reduction of his stake in Chinese electric vehicle-maker BYD, selling holdings in the firm twice this month.

BYD, a global leader in electric vehicles and renewable energy, has Xiang Yang Lu as its top Class A shareholder, with an impressive ownership stake of 18.37%. Holding 213,984,857 equities, Xiang Yang Lu's investment has cemented his position as the leading shareholder of BYD.

What is the #1 EV stock? ›

Buffett hasn't invested in Tesla, but he holds Musk in high regard. He called him “a brilliant, brilliant guy” at Berkshire's annual shareholders meeting in 2023. Buffett also noted, “We don't want to compete with Elon in a lot of things.” Buffett's late right-hand man, Charlie Munger, concurred.

Tesla posts 2024 high in China car sales last month, but is still losing share to rivals like BYD.

Tesla vs BYD

In the last few months of 2023, BYD overtook Tesla to become the world's largest electric vehicle manufacturer with more electric vehicle sales in multiple locations.

BYD EVs aren't being sold in the U.S. now largely because of 27.5% tariffs on the sale price of Chinese vehicles when they arrive at ports. Donald Trump slapped on the bulk of the tariff, 25%, when he was president, and it was kept in place under Joe Biden.

Who owns BYD Limited? As of December 2022, BYD Limited was primarily owned by its founders, Mr. Wang Chuanfu and Lv Xiangyang, and Berkshire Hathaway, the conglomerate run by Warren Buffet, one of the world's best known and wealthiest investors.

Buffett's company has been unloading stock since 2022. More than a dozen sales have taken its stake down by roughly two-thirds from the peak of about 225 million. Berkshire might be taking profits or its management might be worried about slowing EV sales growth or more EV competition. Investors just can't be sure.