EV maker BYD's shares fell more than 10% after Warren Buffett offloaded a sliver of his $7.5 bln stake. Fears he'll exit are weighing on the stock. But boss Wang Chuanfu can navigate what lies ahead with or without the Oracle of Omaha, says KatrinaHamlin
Sales are on a roll too. The carmaker tripled deliveries of electric vehicles to 641,350 in the first half of 2022 from a year earlier. New hybrid powertrains — coupling a battery with a traditional motor — sold well, while pricier new models aimed at taking the brand upmarket also impressed. That helped to more than double net profit to 3.9 billion yuan .
New hazards are emerging, however. Fraught relations between Washington and Beijing could slow sales growth overseas and to foreign clients. Geopolitics could derail a mooted battery-supply deal with Tesla, for example, or jeopardise ties with American automaker Ford. Collaboration with Huawei, blacklisted by U.S. authorities, could also draw unwanted attention as the company expands.
Even so, Wang’s impressive track record suggests he will be able to navigate what comes next – with or without Buffett.Warren Buffett’s Berkshire Hathaway has sold 1.33 million Hong Kong-listed shares of electric-car and battery maker BYD for about HK$370 million , according to a filing on Aug. 30, reducing its stake in BYD's total issued H shares to 19.92% from 20.49%.
Buffett's company had acquired 225 million BYD shares in 2008, giving it a 7.73% stake, equal to the 20.49% stake in H shares. Berkshire paid $232 million for its shares, whose value had by Aug. 30 grown to about $7.5 billion. The Aug. 30 filing is the first confirmation that Berkshire has reduced its BYD investment since a 20.49% stake entered Hong Kong's Central Clearing and Settlement System on July 11, with Citigroup serving as custodian.Register now for FREE unlimited access to Reuters.com
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