Warren Buffett's $7-Billion BYD Exit Tilts the EV Brand Battle Toward Tesla

Warren Buffett has walked away from BYD.

A recent filing shows Berkshire Hathaway no longer holds shares in the Shenzhen-based automaker, marking the end of a 17-year relationship, Reuters reported on Monday.

Berkshire Hathaway, the multinational company of which Buffett is the chairman and largest shareholder, first invested in BYD in 2008.

It bought a 10% stake for about $230 million, and eventually saw its position rise over 20 times before trimming down from 2022 onward.

The last of the stake was sold earlier this year, netting Berkshire an estimated $7 billion profit, more than 30 times what it initially invested.

Buffett's exit comes during a period of pressure for BYD.

In the second quarter of 2025, net profit fell nearly 29.9% year-over-year to about $895 million, its first decline in over three years.

Revenue climbed nearly 14% to $27.6 billion, even outselling Tesla, but discounts cut into margins.

Domestic sales dropped for a fourth straight month in August.

And amid signs of cooling demand and fiercer competition, BYD cut its 2025 vehicle sales target by 16% to 4.6 million units.

News of Berkshire Hathaway walking away compounded the strain on the EV maker.

Company shares sank almost 3% on Monday and are down more than 20% in the past six months.

A Halo Effect Now Gone

Buffett’s name gave global investors confidence.

With Buffett gone, this halo effect disappears, and BYD must carry its brand without one of its strongest endorsements.

Even so, the company’s scale is undeniable. In 2024, it sold 4.27 million EVs worldwide, including hybrids, while Tesla delivered 1.79 million pure EVs.

BYD may lead in sales volume, but Tesla still dominates when it comes to overall brand power.

With a market cap of $1.4 trillion vs. the Chinese automaker's $134 billion, Tesla commands far greater investor confidence.

This financial strength is tied to a brand built on innovation and aspiration, while BYD is still seen as the affordable, high-volume player.

And by stepping into advertising in 2023, Tesla signaled it was ready to play offense on branding at the same time BYD was still working to build global recognition.

However, the EV giant has since dropped its marketing group, raising doubts about whether it will sustain its push into traditional marketing.

Lessons From the Breakup

This BYD crisis shows what brands and agencies should focus on to keep trust and momentum:

• Don’t rely on endorsements. Long-term credibility comes from product strength and consistent performance.
• Control the narrative. In times of change, clear and measured communication reassures stakeholders and keeps confidence intact.
• Prioritize brand power over volume. Strong margins, emotional connection, and clear identity matter more than numbers.

In the end, credibility depends on how well a brand defines itself, even amid negative publicity.

Those who keep their brand story clear and their identity consistent can turn moments of pressure into proof of strength.

Our Take: Can BYD Rebuild Its Brand Without Buffett?

The Buffett era is over, and BYD now faces a pivotal test.

It leads the world in sales volume and continues to expand globally, but Tesla still controls the narrative.

To close this gap, I think BYD will need to move its message beyond price and scale and focus on innovation, quality, and trust.

The EV race will be won not just by who sells more cars, but by who wins the perception battle.

Other automakers are already showing how cultural figures can elevate brand perception.

Ford, for example, tapped football legend Eric Cantona to front its Capri EV launch last year, showing how storytelling and star power can help reposition a brand.

Using similar strategies, Buffett’s departure could actually serve as a marker of the company stepping out on its own.

The strongest brands turn scrutiny into opportunity. These branding agencies craft campaigns that protect reputation while paving the way for growth.