BYD responds to Warren Buffett investment development

Chinese EV automaker BYD was having a great year until its most recent earnings release. 

At the end of August, BYD reported quarterly financial results showing a profit that declined year over year for the first time in three-and-a-half years.

BYD, the world's largest EV producer, reported a second-quarter net profit of 6.4 billion yuan ($894.74 million), down 29.9% from a year ago. This is a stark change from the previous quarter, when the company reported a 100.04% increase in quarterly profit.

BYD's dismal second quarter

• Quarterly profit of 6.4 billion yuan ($894.74 million) was down 29.9% from a year ago.
• Quarterly revenue rose 14% to 200.9 billion yuan on higher volume, but lower prices ate into profits.
• A year ago, BYD reported a 100.04% increase in quarterly profit.
• China's vehicle sales fell for a third consecutive month in July as production fell for the first time in 17 months.

BYD followed the lead of Tesla by lowering prices to garner market share.

Warren Buffett, the famed Oracle of Omaha, has made an art of timing the market tops of his investments. His investment vehicle, Berkshire Hathaway  (BRK.B) , recently liquidated its position in BYD after 17 years as an investor.

This week, BYD responded to the news. 

BYD responds to Warren Buffett, Berkshire Hathaway liquidating its investment

Warren Buffett is exiting his position in the company just as it has begun to make serious inroads in Europe, the world's second-largest EV market. 

Alfredo Altavilla, BYD special adviser for Europe, said Wednesday that the company will also need to build its batteries on the continent as it expands its car production in the region. 

Related: For BYD, Warren Buffett news is just the latest bump in the road

With European ambitions in its sights, Altavilla says BYD is not worried about Buffett in its rearview. 

More EV news:

• It's not just Tesla; another EV giant takes a big tumble
• Ford CEO Jim Farley has a scary message about China's EVs
• EVs suffer surprising rejection in a crucial market
• Tesla's biggest rival slashes prices but faces major pushback

Buffett "made a profit of 20 times the capital he invested. He did very well to do what he did," Altavia said, according to Reuters. "We've been extremely glad to have had Buffett (as an investor), but the fact that he monetised his position is exactly what Berkshire Hathaway does for a living: buying, earning and selling."

Berkshire Hathaway had a long history of support for BYD

Shares of BYD's ADR were down another 0.7% on Wednesday, bringing its losses over the past five trading days to nearly 7%.

Despite Altavilla's insistence that Berkshire's latest move isn't a sign that BYD is faltering, investors don't seem convinced yet. 

But Berkshire has been trimming its position in the company for months. 

Timeline of Berkshire Hathaway's exit from BYD

• 2008 (Sept.) — Buy: Berkshire's MidAmerican invested $230 million in 225 million H-shares (10% stake).
• 2009–2010 — Praise: Charlie Munger praised BYD's Wang Chuanfu as "a combination of Thomas Edison and Jack Welch."
• 2022 (Aug.) — Trimming: Berkshire began lowering its stake after a 20x run-up, selling 95 million shares by late 2022.
• 2024 (July) — Below 5%: A Hong Kong filing showed Berkshire dipped under the 5% disclosure line.
• 2025 (Sept. 22) — Exit: Berkshire's filing put the holding at zero.

Related: BYD follows Tesla's radical approach; the results are just as disastrous