Warren Buffett reduces stake in BYD amidst growing trade tensions
- Warren Buffett's Berkshire Hathaway has trimmed its stake in Chinese EV maker BYD.
- The reduction in shares comes as global trade tensions increase over Chinese EVs.
- The conglomerate sold an additional 1.3 million BYD shares for $39.8 million.
Warren Buffett's Berkshire Hathaway has reduced its stake in BYD, a major electric car maker, amidst escalating global trade tensions over Chinese EVs. The conglomerate sold 1.35 million Hong Kong-listed shares of BYD on June 11, lowering its stake to 6.9%. This marked the first major sale in ten months and the 14th since August 2022. China's dominance in the EV market has led to concerns over trade wars with Western partners. BYD faces increased tariffs, with the European Commission imposing an additional levy of 17.4% on car imports. In response, the Biden administration quadrupled tariffs on EV imports from China to 100%. Berkshire Hathaway's initial investment in BYD in 2008 has proven lucrative, with the Chinese EV maker's stock price soaring. The late Charlie Munger played a significant role in Berkshire's investment in BYD, which has seen remarkable growth under founder Wang Chuanfu. BYD surpassed Tesla as the world's top EV maker in the fourth quarter of 2023. Munger, credited with BYD's success, was introduced to the company by his friend Li Lu.