BYD to Separate Vehicle Manufacturing from Battery Biz

(BRK.A), (BRK.B)

In a move that is directly the opposite of Tesla’s acquisition of Solar City, Chinese new energy company BYD will reportedly spin-off its photovoltaic and rechargeable battery businesses into a separately traded public company.

Nissan made a similar move in the fall of 2017 when it sold its electric battery operations and production facilities to Chinese private investment fund GSR Capital.

BYD is currently one of the world’s top PV manufacturers, and produces from wafer to module with an automatic production line.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares. It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million has grown in value almost ten-fold, and is now worth roughly $1.96 billion.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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