Warren Buffett does not currently own any electric vehicle stock. Berkshire Hathaway has completely exited its position in BYD, the Chinese EV and battery maker, and holds no shares in Tesla or other dedicated EV manufacturers.
The end of the BYD investment
Berkshire Hathaway first invested in BYD in 2008, buying a 10% stake for $230 million. The company, led by founder Wang Chuanfu, started as a battery producer and grew into a major global EV manufacturer. Over 17 years, the investment returned more than 4,500%, making it one of Berkshire’s most successful international bets.
The exit began in 2022 and was completed by late 2023. Regulatory filings in Hong Kong showed Berkshire crossing below key ownership thresholds, and later disclosures confirmed the position was fully liquidated. The move was gradual, suggesting a strategic decision to lock in gains rather than a sudden loss of confidence.
Why Buffett left the EV manufacturing space
Buffett has long avoided capital-intensive industries with fierce competition and thin margins—exactly the traits of the auto business. While BYD was a rare exception due to its strong management and early lead in batteries, the broader EV market has become crowded and unpredictable.
Geopolitical tensions between the U.S. and China may have also influenced the decision. Holding a large stake in a strategic Chinese industrial company became increasingly complex for an American firm. More importantly, Buffett prefers businesses with durable economic moats, and car manufacturing rarely fits that model.
Berkshire’s current automotive and energy strategy
Instead of betting on car brands, Berkshire focuses on parts of the transportation ecosystem with stable cash flows. One major holding is Berkshire Hathaway Automotive, a dealership group with over 80 franchises in the U.S. This business profits regardless of whether customers buy gas, hybrid, or electric vehicles.
Another key player is Berkshire Hathaway Energy (BHE), which owns power grids and utilities across the western United States. As EV adoption grows, demand for electricity will rise, benefiting BHE without exposing it to the risks of manufacturing.
The role of BNSF Railway
Berkshire still owns the Burlington Northern Santa Fe (BNSF) Railway, one of the largest freight railroads in North America. While not directly tied to EVs, BNSF moves massive amounts of goods efficiently and generates strong, consistent cash flow. It represents Buffett’s preference for essential infrastructure over flashy technology plays.
What this means for investors
Buffett’s moves suggest skepticism about picking winning EV brands. Instead, he invests in supporting industries—dealerships, energy grids, and rail transport, that benefit from broader trends without the volatility of car production.
For those following his philosophy, the lesson is to look beyond headlines and focus on businesses with pricing power, strong balance sheets, and reliable returns. The real profits in electrification may not come from the carmakers, but from the systems that support them.