When Warren Buffett invested $230 million in Chinese automaker BYD back in 2008, few could have predicted the extraordinary returns this strategic move would generate. The Oracle of Omaha’s acquisition of a 9.9% stake in the then-emerging player has since yielded returns exceeding 3,000%, cementing it as one of his most profitable international bets.
BYD’s remarkable trajectory continues unabated into 2025, with the company surpassing 1 million vehicle sales in Q1 alone. More impressively, 416,000 of these were battery EVs, representing a 39% year-over-year increase. These figures decisively outpace Tesla‘s 336,000 units during the same period, which actually declined 13% year-over-year.
The company’s integrated production model gives it substantial advantages. By manufacturing its own batteries, drivetrains, and electronics, BYD achieves cost efficiencies that translate to competitive pricing without sacrificing margins. This vertical integration strategy, I’ve observed, creates resilience against supply chain disruptions that have plagued competitors. BYD’s innovative Blade batteries have established new industry standards for cost efficiency and safety performance.
Financial metrics further underscore BYD’s strength. The automaker’s operational margin stands at 7%, matching Tesla’s, while projected Q1 2025 earnings growth ranges from 85% to 118%—a stark contrast to Tesla’s expected 4% profit decline. Trading at just 18 times forward earnings, BYD offers remarkable value for a high-growth manufacturer.
Unlike single-technology rivals, BYD’s diversified portfolio of hybrids and fully electric vehicles caters to varied consumer needs and market conditions. This flexibility, combined with advanced battery technology and economies of scale, positions the company to thrive across global markets. Recent stock data shows BYD Company Ltd ADR trading at 98.38 per share, with a notable 2.13% increase reflecting continued investor confidence. The company’s new partnership with Uber aims to introduce 100,000 electric vehicles on Uber’s platform, potentially expanding BYD’s global footprint.
Though Berkshire Hathaway has gradually reduced its BYD stake in recent years, this appears to be portfolio rebalancing rather than lost confidence. Despite Buffett’s partial exit, BYD’s fundamentals remain compelling.
With consistent sales growth, competitive margins, and technological leadership, this once-speculative bet continues to look like a winner for investors in 2025.
