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Shares of BYD in the United States tumbled 11% Tuesday after Hong Kong’s Central Clearing and Settlement System recorded a massive 225-million-share increase in Citibank’s BYD stock holdings, Reuters reported. That’s the exact number of BYD shares that Buffett’s Berkshire Hathaway had owned.
But investors weren’t waiting to sell what they believed was bad news for BYD. Berkshire’s enormous holding in the company represented 20.5% of the company’s outstanding shares.
China’s overall car market slowed in the spring and the country’s sweeping lockdowns kept factory workers at home and potential buyers at bay. Still, BYD continued to dominate. The company sold a record 106,000 new energy vehicles in April, more than half of which were fully electric. The company’s sales rose 300% between April 2021 and April 2022.
Analysts have attributed BYD’s resilience in sales to its “vertical integrated supply chain.” The business model has made BYD less vulnerable to supply chain disruptions during the lockdowns, while rivals had to cut back production because of chip and battery shortages.
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