Berkshire Hathaway Exits BYD Ending 17-Year Electric Vehicle Stake

Berkshire Hathaway, led by Warren Buffett, has fully divested its stake in Chinese electric vehicle manufacturer BYD after a 17-year investment that proved highly profitable, multiplying the original investment by about 20 times. BYD publicly expressed gratitude toward Buffett and his late partner Charlie Munger for their long-term support, emphasizing that the sale was a normal investment decision rather than a loss of faith in the company. Buffett's initial $200 million investment in 2008 played a key role in BYD's rise as a global EV leader, but recent challenges including a 16% sales target cut for 2025, price reductions, and the first quarterly profit decline in over three years have marked a shift in BYD's growth momentum. Analysts suggest that geopolitical tensions and regulatory complexities in China influenced Buffett's exit, prompting a cautious approach to Chinese investments and possibly shifting investor focus to markets with lower geopolitical risks. Despite Berkshire's exit from BYD, the company continues to expand investments in other Asian markets, such as increasing its holdings in Japanese trading firms. BYD's shares fell over 6% following the news, reflecting investor concern over its future prospects amid a changing market landscape.