Make no mistake: there’s a race underway in the global automotive sector for EV supremacy, and it appears BYD—and its founder, Wang Chuanfu—are in the lead. Tesla is certainly more well-known, particularly in the U.S., where BYD does not yet sell automobiles. But BYD is growing substantially in many other parts of the world.
What began in 1995 as a manufacturer of rechargeable batteries for customers like Nokia and Motorola became the largest battery producer in the world by the early 2000s. In 2003, BYD made a bold move by acquiring Qinchuan Automobile Company, a small, struggling state-owned automaker. Wang believed the future of transportation would be electric, and BYD’s battery expertise gave it a natural advantage.
Initially producing internal combustion engine (ICE) cars to gain experience in vehicle manufacturing, BYD launched the world’s first mass-produced plug-in hybrid vehicle (PHEV) in 2008: the F3DM. This model predated better-known PHEVs such as the Chevy Volt and the Toyota Prius Plug-in.
That same year, Berkshire Hathaway purchased 225 million shares of BYD for $232 million, representing a 10% stake in the company. The investment was driven by the late Charlie Munger, the former vice chairman of Berkshire. Munger was in awe of Wang’s technical brilliance and relentless drive. He once said of Wang:
This guy is a combination of Thomas Edison and Jack Welch—something like Edison in solving technical problems, and something like Welch in getting done what he needs to do.
As early as 2009, Munger publicly stated he believed BYD would eventually “be the biggest damn car company in the world.”
Elon Musk, however, laughed when asked about BYD as a competitor during a Bloomberg interview in 2011. Musk followed-up by saying:
Have you seen their car? I don’t think they have a great product. I don’t think it’s particularly attractive; the technology is not very strong. And BYD as a company has pretty severe problems in their home turf in China.
In hindsight, this was clearly an example of Musk underestimating BYD—much like legacy auto executives once underestimated Tesla.
Ironically, it was Tesla’s own entry into the Chinese market in 2020 that had a transformative effect on EV adoption in China. According to the CEO of Dunne Insights, Michael Dunne, from a recent Face Off podcast interview with Jane Perlez, “Tesla made EVs aspirational for Chinese consumers.” Dunne noted that, prior to Tesla’s arrival, many Chinese car buyers asked, “Why would I buy a BYD when I can get a much better vehicle from a foreign automaker?” But after Tesla stepped in, Chinese perceptions of electric vehicles changed dramatically, and BYD’s business improved dramatically.
Between 2020 and the end of 2024, Tesla’s global vehicle sales increased nearly 260%. Over the same period, BYD’s global automotive sales soared by 2,250%. BYD sold more than 4.2 million vehicles in 2024—compared to just under 1.8 million sold by Tesla. That same year, BYD effectively matched Tesla in global sales of pure battery electric vehicles (BEVs) as well.
Year-to-date, Tesla’s share price has declined nearly 40%. In contrast, BYD’s stock has surged almost 50% this year, reaching an all-time high.
And what about Berkshire Hathaway’s $232 million investment in BYD back in 2008? It’s widely regarded as one of the most successful international equity investments in Berkshire’s history. At its peak between 2021 and 2022, Berkshire’s stake was worth over $7 billion. The firm began selling down its position in mid-2022—a move Warren Buffett described as routine portfolio rebalancing. Recently, Berkshire has trimmed its holdings to below 8%. Even after this sell-down, analysts estimate the investment delivered a 10X to 20X return.
A decade ago, Musk laughed off BYD. Today, Wang Chuanfu isn’t laughing, he’s just out-selling. While Musk dominates headlines, Wang has built a quiet automotive empire selling millions of EVs, dominating China, expanding in Europe, Latin America, and Southeast Asia. In the battle for EV supremacy, the soft-spoken engineer with the battery pedigree may be the one getting the last laugh.
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