The electric car market has been on fire ever since the advent of the Tesla Model S, and with each year electric cars become more and more desirable. It used to be that electric cars were odd looking, didn’t have very much range, and cost a larger sum of money than their gasoline counterparts. That isn’t the case anymore, and Warren Buffett of all people actually purchased stock in an electric car manufacturer ten years ago long before it came into style. Warren Buffett purchased a stake in BYD ten years ago and the stock has been on fire on the heels of the recent news by the Chinese government that they are going to eliminate all fossil fueled cars from their roads in the next twenty years.
BYD makes affordable electric cars that appeal to young families who need something similar to a Toyota or Honda without breaking the bank. Warren Buffett has said that investing in the company was originally Charlie Munger’s idea and the company will eventually make its way over here stateside. BYD is not very well known, and the company has kept a low profile until recently. This is partly due to the fact that Warren Buffett is a perfectionist and he wanted the finished product to be great, especially when he is going to be taking Tesla on. There is nothing like facing the giant with a better product, and BYD has a very good product on their hands.
The Chinese automotive market is three times bigger than the American market, so naturally, this is the first place that they need to win before coming to America. The Americans are still slowly adapting to electric vehicles, but we still have some time before we fully commit to giving up our big fossil-fueled dinosaurs.