(BRK.A), (BRK.B)
Berkshire Hathaway-backed BYD has stopped the production of automobiles powered only by gasoline, with the final model rolling off the assembly line in March.
The Shenzhen, China-based automaker will turn its focus to manufacturing innovative battery- electric vehicles, including high-tech battery electric cars and trucks and plug-in hybrids, company officials said.
While EV battery fires have been a concern with some EVs, including the Chevy Bolt brand, which had all its vehicles recalled to replace defective lithium-ion battery modules in Chevrolet Bolt EVs and EUVs, BYD uses its patented ultra-safe Blade Batteries in all its pure electric models.
According to the company, the Blade Battery has successfully passed the battery industry’s so-called “Everest” test – the nail penetration test, which proves it will never spontaneously ignite.
BYD will continue to produce and supply the components for internal combustion (ICE) vehicles so as to continually provide comprehensive service and after-sales support to existing customers.
BYD and Berkshire Hathaway
In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares for $232 million. It’s an investment that has paid off handsomely. Berkshire’s original investment of $232 million had grown in value to $7.69 billion as of December 31, 2021.
© 2022 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, and this article is not a recommendation on whether to buy or sell a 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.