Warren Buffet's Berkshire Drops BYD Stake Despite EV Leader Seeing Record Sales

Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK.A) is reducing its stake in BYD Co., Ltd. (OTC: BYDDY) to less than 6%.

Berkshire sold nearly 2.02 million Hong Kong-listed shares of BYD at $234.57 apiece, dropping its stake from 6.18% to 5.99%.

The disposal was done on June 19, a Hong Kong stock exchange filing showed. The sale fetched the firm proceeds of HK$473.24 million ($60.61 million).

Earlier this month, Berkshire sold 1.3 million Hong Kong-listed shares of BYD, with the sale fetching the firm proceeds of HK$310.5 million.

The successive trimming may not flag a lack of confidence on the part of Buffett and the team.

In response to the reduction on June 11, BYD indicated that sales and profits continue to grow, CnEV Post reported.

Berkshire recently slashed its position in Apple, its top holding. Buffett clarified at the annual shareholder meeting that the selling was to meet tax expenses and the desire to hold cash amid an uncertain economic environment.

BYD has emerged as the world's leading new energy vehicle (NEV) manufacturer, driven by substantial sales growth over the last two years. In May, the company sold 331,817 NEVs, approaching its record of 341,043 units in December, as per its wholesale sales data released on June 1, CnEV Post added.

Additionally, BYD maintained its dominance in China's passenger NEV market with retail sales reaching 268,226 vehicles, commanding a 33.4 percent market share, according to the China Passenger Car Association (CPCA), the report added.