Warren Buffett Dumps Shares Of China EV Company BYD

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Climatecrisis247 believes that Tesla’s recent earnings show a slowing revenue growth rate. BYD’s growth will be mainly because of its home market of China, which is the largest car market in the world by far. BYD has also started to expand into the EU and is expected to do the same in Southwest Asia and South America. BYD is still mostly locked out of the US because of tariffs.

Climate News –Two Hottest Days Ever?

BYD is expected to become the leader in worldwide EV sales. Tesla has that distinction now. According to a Bloomberg forecast, “BYD Co. may eclipse Tesla Inc. in annual electric vehicle sales this year as demand surges in China but stalls in the US and Europe, according to Bloomberg Intelligence.” Earlier, Bloomberg forecast Tesla would be No.1 for another five years. Climatecrisis247 believes that Tesla’s recent earnings show a slowing revenue growth rate. BYD’s growth will be mainly because of its home market of China, which is the largest car market in the world by far. BYD has also started to expand into the EU and is expected to do the same in Southwest Asia and South America. BYD is still mostly locked out of the US because of tariffs. Cheap EVs may be the core of the industry’s future.

Investment legend Warren Buffett cut his investment in China’s EV company BYD. According to SEC documents, it has dropped below 5%. His holdings were once almost 40% of BYD, which means the reduction is substantial. Buffett is famous as a long-term holder in most of the companies he invests in. There’s a chance BYD has already passed Tesla for EV sales.

Buffett Move To The US?

According to The Wall Street Journal, the drop may be because Buffett wants to concentrate his investment in US companies. Climatecrisis247 believes there may be another reason for Buffett to sell: he wants to lock in profits. BYD’s stock has risen by 372% in the last five years, while the S&P 500 has increased by only 84%. Nevertheless, that is well under the 1,520% rise in Tesla’s share in the same period.

Buffett may just be moving profits off the table. Finally, he may be worried about whether BYD come more into the US.