Charlie Munger prefers this EV stock over Tesla Inc

on Feb 16, 2023
Updated: Jun 21, 2024
  • Charlie Munger says BYD is well ahead of Tesla Inc in China.
  • He d믭 the Chinese EV company his favourite stock ever.
  • BYD stock has returned nearly 40% over the past three months.

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BYD Co. Ltd. (OTCMKTS: BYDDF) is in focus this morning after Charlie Munger said the electric vehicles company was well ahead of Tesla Inc in China.

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BYD profit soared in the recent quarter

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In January, BYD reported a near 1,200% annualised growth in its fourth-quarter net profit.

It acknowledged the pullback in sales last month related partially to the Chinese New Year celebrations but said a sharp recovery is expected in February. To that end, Charlie Munger last night named the EV company his favourite stock ever.

I have never helped do anything at Berkshire Hathaway that was as good as BYD and I only did it once. Berkshire’s initial investment is now worth about $8.0 billion or maybe [$9.0 billion]. That’s a pretty good rate of return.

The EV stock has returned nearly 40% over the past three months.

Munger has confidence in BYD management

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Munger, who’s broadly known as the right-hand man of the legendary investor Warren Buffett, has immense confidence in the management at BYD Co. Ltd and sees CEO Wang Chuanfu, in particular, as a genius.

The 99-year-old investor agreed that BYD was no longer a cheap stock. Speaking at the Daily Journal’s annual meeting, though, he still dubbed it a better investment than Elon Musk’s Tesla Inc.

It’s a very remarkable company. Tesla last year reduced its prices in China twice. BYD increased its prices. We are direct competitors. BYD is so much ahead of Tesla Inc in China – it’s almost ridiculous.

Year-to-date, shares of Tesla have nearly doubled as well.

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