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BYD's share price fell sharply after Warren Buffett’s Berkshire Hathaway sold all its shares in the Chinese electric vehicle maker. The move ends a 17-year investment that earned Buffett huge profits.
In Hong Kong, BYD stock dropped about 3.6%, making it one of the worst-performing Chinese stocks on Monday. The company’s shares have fallen around 30% from their record high just four months ago. Investors reacted quickly to the news.
Buffett first bought 10% of the BYD stock in 2008 for $230 million. Since then, the stock rose over 4,500%, turning the investment into one of Berkshire Hathaway’s biggest wins. Berkshire started selling the shares in 2022, and by March 2025, the stake was shown as zero. The sale reflects Buffett’s plan to move money into safer investments.
BYD faces many problems. Sales in China have fallen for four straight months, and the company has dropped its annual sales target to 4.6 million vehicles. Price wars and rising competition are cutting into profits in China.
BYD thanked Berkshire Hathaway for the long-term support. Li Yunfei, the company’s branding and public relations head, said Buffett and Charlie Munger helped BYD grow for over 17 years. The company said the sale was a normal part of stock market activity.
Despite the drop, BYD remains a top player in the global EV market. The company is leading in Europe and Latin America and outpaces its competitors in technology and market share. Experts say Buffett’s exit shows a change in investor sentiment, but BYD’s future still looks strong.
Buffett’s stock sale shows how even seasoned investors adjust their plans to changing markets. This news reflects the rapid change occurring in the Chinese EV market. BYD faces severe competition and pricing pressure while remaining a major contender on the world stage in electric vehicle manufacture. Investors are eager to see how the company will deal with these challenges.
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