Charlie Munger says BYD is so far ahead of Tesla in China it's almost ridiculous

Charlie Munger said Wednesday that Tesla pales successful examination to BYD successful China, calling the Chinese electrical conveyance shaper his favourite banal ever.

"I person ne'er helped bash thing astatine Berkshire [Hathaway] that was arsenic bully arsenic BYD and I lone did it once," the 99-year-old capitalist said astatine the Daily Journal's virtual yearly gathering Wednesday. Berkshire archetypal concern is present "worth astir $8 cardinal oregon possibly $9 [billion]. That's a beauteous bully complaint of return," said Warren Buffett's longtime concern partner.

BYD has been a lucrative stake for Berkshire , which archetypal bought astir 220 cardinal shares successful September 2008. The banal has jumped much than 600% successful the past 10 years amid the monolithic maturation successful electrical vehicles. Berkshire has really been trimming its BYD involvement successful the past twelvemonth arsenic the banal has go progressively pricey.

"At the existent terms of BYD stock, small BYD is worthy much than the full Mercedes corporation. It's not a inexpensive stock, but connected the different hand, it's a precise singular company," Munger said.

Munger, Berkshire's vice president and a Daily Journal committee member, credited Li Lu, laminitis of Seattle-based plus manager Himalaya Capital, for introducing him to BYD. Munger besides said BYD CEO Wang Chuanfu is unusual, calling him a genius and a workaholic.

Asked if helium would similar Tesla oregon BYD arsenic an investment, Munger said the reply is easy.

"Tesla past twelvemonth reduced its prices successful China twice. BYD accrued its prices. We are nonstop competitors. BYD is truthful overmuch up of Tesla successful China ... it's astir ridiculous," Munger said.

BYD precocious said it expects grounds adjusted yearly profit for 2022 of 16.3 cardinal yuan ($2.4 billion), astir 1,200% supra 2021.

"BYD past twelvemonth made much than $2 cardinal aft taxes successful the car concern successful China. It's unthinkable what's happened," Munger said. "If you number each the manufacturing abstraction they person successful China to marque cars, it would magnitude to a large percent of the Manhattan island, and cipher had ever heard of them a fewer years ago."

The longtime capitalist called Tesla CEO Elon Musk talented — and peculiar. He antecedently said what Musk achieved successful the car concern was a "minor miracle."

"I don't bargain him, and I don't abbreviated him," Munger said Wednesday.