Berkshire Hathaway's BYD Investment Pays Off as Chinese EV Maker Surpasses Tesla in Quarterly Revenue

Edited by: Olga Sukhina

Berkshire Hathaway's early investment in Chinese electric vehicle manufacturer BYD has yielded significant returns. BYD surpassed Tesla in quarterly automotive revenue for the first time, marking a major achievement. Warren Buffett reaffirmed his support for BYD at Berkshire's 2024 annual meeting. While Berkshire has trimmed its BYD stake since 2022, its initial $230 million investment is now valued between $6 billion and $8 billion. BYD's success is attributed to its vertical integration, controlling its entire supply chain, and its innovative Blade Battery technology. The company's gross margins exceed those of Tesla, BMW, Mercedes-Benz, and Toyota. BYD recently raised $5.6 billion in Hong Kong to further expand its operations.

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