BYD stock plunges

BYD shares fell on Tuesday on speculation that Warren Buffet's Berkshire Hathaway might sell its stake. In the Hong Kong stock exchange clearing system, approximately 225 million shares appeared, matching the size of Buffett's BYD holdings, which represent a 20.5 percent stake. BYD's Hong Kong-listed stock fell 11%, while US-listed over-the-counter shares fell 11%.

According to BYD, neither the company nor the Hong Kong exchange had received a statement of a major stake changing hands, as required by Chinese regulations. 

In 2008, Buffett's conglomerate made a $232 million initial investment in BYD. The stake, one of Berkshire's largest stock holdings, was recently valued at $7.7 billion.

Any stock sale would come on the heels of a record high for BYD shares in June, as interest and appetite for electric vehicles grows in response to skyrocketing gas prices. Meanwhile, BYD outsold rival Tesla in the first half of 2022 and is aggressively expanding.

However, a significant shift in stakeholders could complicate such an expansion at a time when the company is seeking supply chain independence to avoid supply chain snarls that plague global consumers.