© Reuters.
Investing.com – Warren Buffett’s corporate right-hand man Charlie Munger still considers investing in a budding Chinese automaker in 2008, now the world’s best-selling electric vehicle brand, his best investment decision so far. writes Yahoo.
Munger praises BYD’s dominance in China’s electric vehicle market, which far outpaces Tesla (NASDAQ:) in that country in terms of sales.
For example, middle-income Chinese consumers prefer to buy BYD models ranging from $14,500 to $29,000 instead of more expensive competitor models such as Tesla and Xpeng (NYSE:).
This explains BYD’s dominance of the market: in 2022, the firm delivered 1.86 million vehicles, 3 times more than in 2021 and enough to become the world’s top-selling electric vehicle manufacturer (although both hybrids and all-electric vehicles are sold). cars). For comparison, in the same year, Tesla delivered 1.3 million vehicles worldwide.
At the same time, BYD increased the prices of some of its most popular models, while Tesla, on the contrary, was forced to offer discounts on its cars. The expiration of consumer subsidies for the purchase of electric vehicles could push many other car companies to lower prices in order to retain customers.
BYD estimates the company’s 2022 net income will be between $2.2 billion and $2.4 billion, up nearly 1,200% from its 2021 net income. BYD also plans to expand its sales market in Japan and Europe.
“What happened is unbelievable,” Munger said. “A few years ago, no one had heard of BYD.”
Corporation Berkshire Hathaway acquired 225 million shares of BYD in 2008 for $230 million, and Munger played a key role in this.
— Yahoo materials were used in the preparation
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