BYD has surpassed Tesla, becoming the best-selling electric car brand in China. Last month, the company sold 103,157 pure electric vehicles in China, while Tesla sold 71,704 vehicles, according to data from the China Automobile Association.
At the end of June, BYD stock price on the Hong Kong stock exchange reached a record high of 331.4 HKD (42 USD), which is about 41 times the price that Berkshire bought it 14 years ago.
14 years ago, Berkshire only had to spend about 1 USD/share when it first invested in BYD, and now, after 5 installments, BYD has sold a total of 49.4 million shares at an average price of about 26 USD/share. Berkshire did not give a reason for selling the shares.
After registering to sell on the clearing system of the Hong Kong Stock Exchange on July 12, the amount of BYD shares they held decreased by 22% to 176 million on November 17.
BYD investors are quite worried about Berkshire continuously "selling" BYD shares, and the possibility that Buffett and his investment team will continue to sell or sell out. That sentiment has caused BYD stock prices to drop 43% since July 11, one day before shares held by the Berkshire company appeared on the clearing system.
Berkshire's stock sale, along with the sharp drop in BYD stock price, left the remaining shares worth about $3.9 billion, less than half of the $8.8 billion level at the end of June.
According to Hong Kong Stock Exchange regulations, Berkshire only has to notify transactions that change the round percentage. As a result, Berkshire could sell another 11 million shares before its total holding of BYD shares on the Hong Kong stock exchange falls below 15%.
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