BYD stock plummets on fears Warren Buffett's Berkshire Hathaway may dump its position in the Chinese EV maker
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- Shares of Chinese electric car maker BYD plummeted Tuesday on fears Berkshire Hathaway may be selling its position.
- About 225 million shares appeared in the Hong Kong stock exchange clearing system, matching Warren Buffett's holdings.
- BYD stock listed in Hong Kong dived 12%, and US-listed shares that trade over the counter tumbled 11%.
Shares of Chinese electric car giant BYD fell Tuesday on fears that Warren Buffet's Berkshire Hathaway could potentially sell its position.
About 225 million shares appeared in the Hong Kong stock exchange clearing system, matching the size of Buffett's BYD holdings, which represent a 20.5% stake.
BYD stock that's listed in Hong Kong dived 12%, and US-listed shares that trade over the counter tumbled 11%.
BYD told the Financial Times that neither the company nor the Hong Kong exchange had yet to receive a statement of a major stake changing hands which is required under Chinese regulations. Berkshire didn't immediately provide a comment to Insider.
Buffett's conglomerate made an initial investment in BYD of $23 million in 2008. The stake, which is among Berkshire's biggest stock positions, was recently valued at $7.7 billion.
Any stock sale would follow a record-high for BYD shares in June as interest and appetite for electric vehicles increases on the heels of skyrocketing gas prices. Meanwhile, BYD outsold rival carmaker Tesla in the first half of 2022 and is aggressively seeking to expand.
But a major shift in stakeholders could complicate such an expansion at a time when the company is seeking supply chain independence to avoid snarls afflicting global consumers.
Contributer : Business Insider https://ift.tt/SFCioDT
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Wednesday, July 13, 2022
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