In a surprising turn of events, Warren Buffett's Berkshire Hathaway has completely divested from Chinese electric vehicle manufacturer BYD after a remarkable 17-year journey. This significant move comes as a filing revealed that Berkshire's investment in BYD has dropped to a staggering zero by the end of March 2024, a stark contrast to its peak value of $415 million.

Berkshire initially made headlines in 2008 when it invested $230 million in BYD, securing roughly 225 million shares or a 10% stake in the Shenzhen-based automaker. Over the years, this investment skyrocketed over twentyfold as BYD emerged as a major player in the EV market.

However, after witnessing a substantial surge in share prices, Berkshire began to offload its shares in 2022. Reports of this divestment were first highlighted by CNBC over the weekend.

A Fond Farewell

Li Yunfei, BYD's General Manager of Branding and Public Relations, took to social media to express gratitude toward Berkshire for their support throughout the years. He characterized the sale as a typical investment trade, reflecting on the mutual respect built over the long-term partnership.

Challenges Ahead for BYD

Despite its past successes, BYD is facing hurdles. The company reported its first quarterly profit decline in over three and a half years as it confronts challenges due to a government crackdown on price wars within the industry. Domestic sales, which constitute nearly 80% of BYD's global shipments, have now dipped for four consecutive months, forcing the company to revise its annual sales target down by as much as 16%, now aiming for 4.6 million vehicles.

As the tides shift in the automotive landscape, industry watchers will be keen to see how both Berkshire Hathaway and BYD navigate the challenges and opportunities that lie ahead.