Warren Buffett’s Berkshire Hathaway dumps BYD shares following rise in trade tension over Chinese EVs

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Hong Kong CNN —

Warren Buffett’s Berkshire Hathaway has further cut its large stake in BYD, which vies with Tesla as the world’s largest electric car (EV) maker,as global trade tensions escalate over Chinese EVs.

The legendary investor’s conglomerate sold another 1.35 million Hong Kong-listed shares of BYD on June 11, trimming its stake to 6.9% from 7.02%, a Hong Kong stock exchange filing showed Monday. The sale was valued at 310.5 million Hong Kong dollars ($40 million).

It’s the first major sale of BYD shares by Berkshire in ten months and the 14th since August 2022, when it started gradually reducing its stake in China’s top EV maker. BYD shares had closed at a record high in June of that year.

The latest sale comes as tensions soar over exports of cheap EVs from China.

Buffett says he made a smart bet on BYD.

The country has become a dominant force in the global EV market, thanks to significant policy support from the government and heavy state subsidies. But a flood of cheap models has raised the specter of another trade war with its Western trading partners.

Last week, the European Union hit EVs imported from China with additional tariffs because of what it sees as Beijing’s unfair support for companies that undercut European carmakers.

BYD electric vehicles awaiting export at the port in Lianyungang in Jiangsu province, China, on April 25, 2024

Related article Europe’s electric car tariffs sting China but won’t halt BYD’s advance

That is expected to deal a blow to the the country’s manufacturers, which view Europe as a key export market. BYD will face