Warren Buffett likely sees headwinds for electric vehicles as the billionaire sold more BYD shares.
BYDDF – Daily Chart
BYD’s price is $30 and in an uptrend channel. The upside target is the $32.75 level, which will soon align with the channel line.
The legendary investor’s Berkshire Hathaway conglomerate sold another 1.35 million Hong Kong-listed shares on June 11. The sale took the firm’s stake to 6.9% from 7.02%, valued at 310.5 million Hong Kong dollars.
The latest sale comes amid fears over trade tensions between the US and China. Thanks to significant government policy support, China has become dominant in the global EV market. However, a flood of cheap models has raised the risk of tensions with its Western trading partners.
Last week, the European Union added additional tariffs to EVs imported from China. The news came after China increased its EV import market share in Germany to 40.9%. In 2023, Chinese firms exported 447,200 electric cars to Germany, with only 11,400 moving in the other direction, according to Destatis.
Domestically, BYD said it sold 35,370 Seagulls, its low-cost EV car, in May.
In response to Berkshire’s recent share sale, BYD released a statement saying the company’s operating condition is good, with sales volume, profits, and other operating metrics supporting the current valuation.
