Legendary investor sells nearly all shares in China’s electric vehicle giant — what this means for the EV sector
The Sale and Its Scale
Warren Buffett’s flagship company, Berkshire Hathaway, has liquidated virtually its entire stake in BYD, the Chinese electric vehicle (EV) manufacturer in which it once heavily invested. The move marks a significant shift, with only a small residual holding reported.
Reasons Behind the Exit
While Buffett has not explicitly detailed all the reasoning, analysts suggest that concerns over regulatory risks in China, growing competition in the EV market, and valuation pressures may have prompted the divestment. Some observers believe that Berkshire saw limited upside relative to these mounting challenges.
Market Reactions and Implications
The stock market responded quickly: BYD shares dipped following the news, reflecting investor worry about institutional confidence and demand. On the other hand, this exit may free Berkshire to redeploy capital into newer opportunities in AI, renewable energy, or U.S.-based tech.
Looking at the Broader Trend
Buffett’s move is part of a broader trend of global investors reevaluating stakes in foreign tech and EV companies amid geopolitical uncertainty. For followers of his investment strategy, the exit underscores a preference for clearer regulatory environments and more predictable return profiles.
