Warren Buffett's conglomerate has sold an additional 1.3 million Hong Kong-listed shares of BYD for $39.8 million, according to a filing.
Warren Buffett's investment conglomerate, Berkshire Hathaway, has further reduced its stake in Chinese electric vehicle (EV) manufacturer BYD. A filing with the Hong Kong Stock Exchange on Monday revealed that Berkshire sold 1.3 million BYD shares listed in Hong Kong on June 11.
Berkshire Hathaway, the investment company owned by Warren Buffett, has sold 1.3 million Hong Kong-listed shares of electric vehicle maker BYD for HK$310.5 million ($39.8 million), a stock exchange filing showed on Monday.
Sales and financials approaching Tesla in battery-electric vehicle (BEV) category. Low-cost models will bring brand to mass market in the West. Rising popularity will pressure BEV startups and legacy automakers.
24/7 Insights Shares of Chinese EV-maker BYD soared in Hong Kong despite tariffs in the European Union.
Shares of Nio Inc. and BYD Co. Ltd. fell Wednesday, following news that the European Commission plans to impose new tariffs on EVs from China of up to 38%.
Chinese vehicles are benefiting from unfair subsidies that distort competition, the EU said.
Chinese electric vehicle (EV) makers such as BYD (OTCMKTS: BYDDY ) and Nio (NYSE: NIO ) have certainly seen very different market reactions to their impressive growth rates. BYD has turned into a dominant China-based player in the global EV market.
EV stocks are grappling with lower sales and dwindling profit margins, which has left investors wary of the sector's long-term outlook. However, the high-end EV market lull offers an excellent opportunity to scoop up some undervalued EV stocks.
BYD is aggressively expanding into markets outside of China, posing a threat to Tesla and other companies with its affordable EV options. In May, BYD sold 37,499 electric vehicles abroad, showing a Y/Y increase of 267.5%. The Seagull EV could be introduced to Europe/the U.K. next year, potentially escalating a price war in the industry.
Li Auto, Geely Automotive ADRs fell as Turkey imposed new levies on imports and there are fears the EU will follow suit.
EVs are the future. As the world leaves behind gas-fueled cars, they are slowly shifting towards more widespread usage of electric cars.