China. Berkshire Hathaway exits BYD amid stock market crash.

by Guido Keller –

After 17 years and an initial investment of $230 million, Berkshire Hathaway, the holding company led by billionaire Warren Buffett, has sold its entire stake in BYD, the Chinese electric car giant, ending a historic investment begun in 2008. The first consequence was the market collapse of BYD, which lost 3.6% on the Hong Kong Stock Exchange, but the first decline in quarterly profits in nearly four years had already been recorded due to competition and the price of electric cars, which continue to be inaccessible to most people. BYD's stock market crash and Warren Buffett's definitive exit after 17 years of participation are a clear signal in the direction we've been pointing for some time: the electric car fairy tale is over. If even one of the world's most prudent and far-sighted investors decides to abandon the field, it means the model has failed. It's time for European politicians and the Italian government to face reality and stop fueling a madness that is destroying our industry and the entire fabric of small and medium-sized automotive companies. If Ursula von der Leyen continues to insist on this green madness, it will mean that her goal is to definitively condemn the European industry to bankruptcy.

Stefano Ruvolo, president of Confimprenditori, stated, "This clear signal represents yet another confirmation of the contradictions of a sector artificially kept alive by incentives and ideological propaganda. The market has spoken clearly: electric is not sustainable, neither for consumers nor for businesses. Price wars, falling sales, and the lack of infrastructure have already brought giants like BYD to their knees. Imagine what could happen to our SMEs forced to endure misguided European policies. We must abandon this obsession and return to true technological neutrality, which also allows for investment in biofuels, hydrogen, hybrids, and innovation in traditional engines. If we don't reverse course, the fate of the European automotive industry will be sealed, and with it that of hundreds of thousands of businesses and workers."