Here are a couple of statements that will make you scratch your head and think for a second.
Warren Buffet financially backs a Chinese automaker called BYD.
BYD sells more new energy vehicles, aka full battery electric vehicles and plug-in hybrids, than Elon Musk’s Tesla.
I’m not sure what is more surprising; that Buffett is all in on a Chinese company or Musk is second banana when it comes to EV sales.
The numbers don’t lie. BYD sold an incredible 641,350 new vehicles in the first six months of this year, 134,000 more than Tesla was able to move.
What makes the story even more bizarre is that one of the reasons Tesla’s sales were off is because of a shutdown at a critical production plant in, you guessed it. China.
Berkshire Hathaway has a 7.7% stake in BYD, an investment worth over $9 billion. The Oracle of Omaha put $232 million into the company 14 years ago, another brilliant move.
BYD has come a long way. Back in 2011, Musk literally laughed when a reporter asked him about BYD’s product line, scoffing at the thought that they offered serious competition.
Here is what he told Bloomberg 11 years ago.
“Have you seen their car? I don’t think they have a great product. I don’t think it’s particularly attractive; the technology is not very strong.”
Word is the two companies have a good relationship now, with Reuters reporting that BYD’s top execs refer to Musk as a good friend.