Electric Vehicle (EV) market competition
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BYD stock drops as Warren Buffett's Berkshire Hathaway fully exits stake
Yahoo Financeยท 2025-09-22 16:56
Core Viewpoint - Berkshire Hathaway has fully exited its stake in BYD, marking the end of a 17-year investment relationship, which has raised concerns about BYD's future growth prospects in the competitive EV market [1][2][3]. Company Summary - BYD's shares fell over 3% following the news of Berkshire Hathaway's complete divestment [2]. - Berkshire Hathaway initially invested in BYD in September 2008, purchasing 225 million shares for approximately $230 million, which later appreciated to a value of around $7.7 billion before the sell-off began in 2022 [3]. - A BYD executive expressed gratitude towards Berkshire Hathaway for their long-term support and investment [2]. Industry Summary - Despite BYD's battery electric vehicle (BEV) registrations surpassing those of Tesla in Europe for the first time in May, the company's overall growth appears to be slowing [5]. - Recent reports indicate that BYD has reduced its 2025 sales target in China by up to 16% to 4.6 million vehicles, which would represent the slowest annual growth rate in five years [6]. - The competitive landscape in China's EV market, along with potential product oversaturation, is contributing to the challenges faced by BYD [6].