BYD, the Chinese automobile manufacturer that Warren Buffett’s Berkshire Hathaway has a minority stake in, has surged past Elon Musk’s Tesla Inc (NASDAQ:TSLA) to become the world’s leading electric vehicle (EV) producer by sales.
Shenzhen-based BYD sold 641,000 vehicles between January and June – a 300% increase compared with the same period last year – while Texas-based EV maker Tesla managed sales of 564,000 cars.
Musk, the world’s richest man, blamed its concession of the top spot on a problematic second quarter, with supply chain and revenues disruptions from travel restrictions and China’s lockdowns.
BYD, in which Buffett’s Berkshire has a 7.7% stake, has helped signal to many investors China’s emerging dominance in renewable energy via economies of scale and other cost advantages.
China, the world’s biggest car market, exported over 500,000 EVs in 2021, up by more than double on the prior year.
In April, BYD overtook South Korea’s LG as the world’s second-largest EV battery producer, with Tu Le, managing director of advisory group Sino Auto Insights, saying it has been “firing on all cylinders,” with products covering many critical EV market segments, the Financial Times reported.
Buffett, who was for decades very critical of new generational stocks, has now invested in a fair few via his holding company Berkshire.
He has ventured into the EV space, digital banking sector and even bought shares in Apple Inc (NASDAQ:AAPL) in 2016 to name a few.
Elon Musk, with a net worth of US$224bn, was the world’s richest last month, with Buffett down in fifth place at US$114bn.