Watch out for these signs: after years of explosive growth (+4,500% in 17 years), even Warren Buffett is divesting his stake.
The symbol of China’s electric vehicle race is slowing down. BYD, the giant that in just a few years has gone from phone batteries to competing with Tesla for the leadership position in electric vehicles, is experiencing its first slowdown after more than five years of unstoppable growth. This alone would be enough to shake the markets, but it becomes even more significant when read in conjunction with Warren Buffett’s decision to eliminate his historic stake in the group after 17 years.
Is this just a coincidence or a warning bell of a new and much more uncertain phase for the Shenzhen giant?
Quarterly results: the first slowdown in five years
BYD sales in the third quarter of 2025 fell 2.1% compared to the same period the previous year, reaching 1.106 million vehicles. This is the first time since 2020 that the vehicle deliveries declined. This data is doubly weighty because it comes after a particularly weak September, with a -5.9% year-over-year decline, and an additional 8.5% reduction in output.
The company has even cut its full-year sales growth target to 16%, now aiming for 4.6 million vehicles sold. These numbers demonstrate how the era of rapid expansion, supported for years by government subsidies and Chinese consumers’ enthusiasm for electric vehicles, is showing its first cracks.
Compounded by fierce competitive pressure, Tesla has been cutting prices, new local brands are crowding the market, and profit margins are shrinking. It’s therefore not surprising that BYD shares have lost around 30% from their highs of four months ago, with investors increasingly skeptical of the group’s ability to maintain its leadership.
The Outlook After Buffett’s Departure
If the numbers already raise doubts, Warren Buffett’s decision to fully exited his position in BYD carries enormous weight. Berkshire Hathaway, which in 2008 had bet on 225 million shares at the suggestion of Charlie Munger and Li Lu, gradually reduced its stake until it was zero in the first few months of 2025. Over 17 years, that investment generated an extraordinary return, and this is precisely why the divestment is worrying investors.
If Buffett has decided to realize gains and reallocate capital, it means that BYD’s growth potential is no longer a given. Domestic competition in China is fierce, margins are thinning, and the stock, already down 30% from its highs, faces further downside risk. Furthermore, management’s statements, which thanked Buffett and Munger for their 17 years of support, resemble a definitive closure rather than a temporary departure.
Original article published on Money.it Italy 2025-10-02 17:07:22. Original title: BYD rallenta. Le vendite trimestrali diminuiscono per la prima volta dal 2020
