The BYD Co. logo on the front grille of the Han luxury sedan on the opening day of the Paris Motor Show in Paris, France, on Monday, 17 October 2022. (Photo: Nathan Laine/Bloomberg) 
Shares in the Shenzhen-based company fell as much as 2.6% in early Hong Kong trading, the most on an intraday basis since 27 June. That trims this year’s rally to around 12% — still better than electric vehicle rival Tesla Inc.’s 1.2% gain.
Warren Buffett’s investment firm now holds 4.94% of the Chinese automaker, according to a Hong Kong exchange filing on Monday, down from 5.06%. Dropping below the 5% threshold means that Berkshire Hathaway is no longer obligated to disclose any further sales, or whether it exits its position altogether.
Buffett, renowned as one of the world’s most astute investors, saw a 2,000% gain from his early bet on BYD, which went from a little-known Chinese battery provider for cell phones to the biggest electric and hybrid vehicle maker in a little over 20 years. At a market valuation of $100 billion, BYD is the third most-valuable carmaker globally after Tesla and Toyota Motor Corp.
Read More: Berkshire Slows Pace of BYD Share Selling Amid Stock’s Rebound
Other early investors have also taken profit. Himalaya Capital once held 75 million shares for a stake of around 8.2% but its interest dipped below 5% in 2021.
Himalaya’s Chairman Li Lu was the one who recommended the Chinese automaker to the late Charlie Munger, Berkshire’s former vice-chairman. Berkshire purchased 225 million of BYD’s Hong Kong-listed shares in 2008 for $232-million.
BYD’s market leading position stems in part from its vertical integration that keeps costs down — the company makes its own batteries and semiconductors, and even has its own ship to send cars abroad — and also its strong line up of attractive, well designed cars along all price points.
Despite Berkshire’s selldown, BYD is going from strength to strength, selling a record number of electric and hybrid vehicles in the second quarter. The Chinese brand sold just shy of 1 million units between April and June.