Berkshire Hathaway Exits BYD After 17 Years, Citing Market Changes in China’s EV Sector

Warren Buffett’s investment firm, Berkshire Hathaway, has completely divested from Chinese electric vehicle maker BYD, according to a recent filing cited by Reuters. The move marks the conclusion of a 17-year investment journey that saw Berkshire’s stake in the Shenzhen-based automaker grow more than twentyfold.

Berkshire’s energy subsidiary reported that the value of its BYD holding had dropped to zero by the end of March, a sharp decline from $415 million at the close of 2024. The firm originally invested in BYD in 2008, purchasing approximately 225 million shares for $230 million, representing a 10% ownership at that time. Over the years, as BYD’s share price surged, Berkshire began gradually selling its stake starting in 2022.

The company did not provide immediate comments regarding the exit, while CNBC was first to report Berkshire’s full divestment on Sunday.

Li Yunfei, BYD’s general manager of branding and public relations, acknowledged the end of Berkshire’s investment on his official Weibo account. He expressed gratitude for the "investment, help and companionship over the past 17 years" and described the sale as a routine stock market transaction. BYD has not issued further comments on the matter.

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Meanwhile, BYD, widely recognized as a key competitor to Tesla, has faced challenges in its domestic market. The automaker reported a decline in quarterly profit for the first time in over three and a half years, attributed to a slowdown in expansion and regulatory measures discouraging price wars.

Domestic sales, which account for roughly 80% of BYD’s global shipments, have dropped for the fourth consecutive month in August. Consequently, the company revised its annual sales target downward by up to 16%, now aiming for 4.6 million vehicles.

Berkshire Hathaway’s exit from BYD closes a remarkable chapter in Buffett’s global investment portfolio, highlighting the evolving dynamics of the Chinese electric vehicle market and the challenges even top-performing companies can face amid changing market conditions.