Warren Buffett will divest himself of his holdings in the Chinese electric vehicles maker BYD.
According to a filing with the stock exchange, the investment firm Berkshire Hathaway, which Warren Buffett owns, has sold 4.235 million shares of the Hong Kong-listed company BYD for a total of HK$1.09 billion ($139 million).
As a result of the sale on February 3, Berkshire’s holdings in BYD’s issued H-shares dropped from 12.26 percent to 11.87 percent, as shown by the filing that was made to the Hong Kong Stock Exchange on Thursday.
In January, Berkshire Hathaway completed the sale of 1.55 million shares of BYD for a total of HK$351.81 million (approximately $44.85 million).
Berkshire Hathaway to unload shares
Since late August of the previous year, the company has been trying to unload its shares in the rapidly growing automaker.
At that time, Berkshire had a stake in the company equal to 20.49 percent of its H shares.
By 2022, BYD had sold a total of 1.86 million automobiles, making it the world’s largest manufacturer of plug-in hybrids and pure EVs.
Notably, Tesla’s growth rate has been slower than BYD’s.
Automotive News reported that Berkshire made its first investment in BYD in 2008, purchasing 228 million shares for a total of $232 million.
In 2021, Berkshire had a stake in the company worth over $7 billion and reached as high as 21%.
BYD surpassed Telsa in the Chinese market
Now that BYD is posting strong sales in China at a budget-friendly price point for its EV, the firm led by Warren Buffett has been cashing in on the company’s success.
In 2022, BYD overtook Tesla in terms of sales in the Chinese market.
BYD’s US-listed shares have fallen roughly 5% since late January but are still up 23% year to date. On Thursday, the stock rose 4.4% to $31.70.
Meanwhile, sources told the Wall Street Journal last month that BYD is in talks with Ford to buy a production plant in Germany.
A deal would represent a substantial global expansion for China’s leading EV manufacturer.
