Warren Buffett dumps stake in Chinese Tesla rival amid £31bn exodus

Core Insights - BYD's profits fell by 30% in Q2 2024 compared to the same period in 2023, amounting to 6.4 billion yuan [4] - Berkshire Hathaway has completely divested its stake in BYD, reducing its investment from $415 million at the end of 2023 to zero in Q2 2024 [1] - The exit of Warren Buffett has led to a 3.4% drop in BYD's share price in Hong Kong, contributing to a £31 billion decline in the company's market valuation since May [2][3] Financial Performance - BYD reported a profit of 6.4 billion yuan in Q2 2024, a decrease of 30% from the same quarter in 2023 [4] - The company's shares have fallen over 29% from their record highs in May 2024, resulting in a market valuation loss of approximately £31 billion [3] Investor Sentiment - Warren Buffett's exit from BYD has been mirrored by other Western investors, with major stakeholders like Vanguard, BlackRock, JP Morgan, Fidelity, and Citigroup selling a total of 222 million shares worth around £2.6 billion in Q2 2024 [3] - Despite the sell-off, BYD has increased its market share in the UK, selling 1,759 vehicles in August 2024, up from 438 in the same month last year [6] Competitive Landscape - BYD has engaged in aggressive pricing strategies, launching its entry-level car at 75% less than Tesla's cheapest model, with the Seagull hatchback priced at 55,800 yuan (£5,800), which is about a quarter of the cost of Tesla's Model 3 [7][8]