BYD (OTC:BYDD.F) is a pioneer and industry leader in clean energy vehicles. The Chinese company manufactures electric vehicles (EVs) and plug-in hybrid vehicles, as well as electric buses, trucks, other commercial vehicles, rechargeable batteries, and solar panels. In addition to developing sustainable solutions, BYD makes mobile handset components and has developed a monorail system.
OTC: BYDD.F
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BYD's early leadership in EVs caught the eye of Warren Buffett. His company, Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B), initially bought a 10% stake in the Chinese EV maker in 2008. While Buffett's company has trimmed its position over the years, he still likes BYD (Berkshire owned a 4.9% stake in the Chinese automaker as of early 2025).
Many people are interested in BYD stock because of Warren Buffett's presence as an investor and the company's focus on sustainable solutions. This guide will teach you everything you need to know about BYD and how to invest in the Chinese electric car company.
Stock
Should I invest in BYD?
Not every stock will be right for you. You need to make sure the stocks you buy will help you achieve your financial goals while aligning with your values and risk tolerance. With that in mind, here are some reasons you might want to invest in BYD:
- You want to invest in a company building a more sustainable future.
- You want to invest in stocks owned by Warren Buffett.
- Adding BYD would help diversify your portfolio by adding an international stock.
- You believe BYD can fend off the growing competition in the EV industry.
- You want to invest in a profitable EV company (a rarity in the sector).
- You're comfortable with the risks of investing in China.
On the other hand, here are some reasons BYD stock might not be right for you:
- You're concerned about the Chinese government's influence over companies operating in the country.
- You don't want to invest in foreign-listed stocks due to governance concerns and foreign exchange risk.
- You're worried about the growing competition in the EV industry.
- You think the U.S. tariffs on EVs produced in China will shut off a potentially lucrative growth market for BYD.
- Warren Buffett's sales of BYD stock have raised a red flag for you.
- You already own several EV and transportation stocks.
- You need more dividend income than BYD can supply.
Is BYD profitable?
Profits power businesses. Companies must make money to fund their operations and expansion. Investors need to look under the hood to see whether a company is making money or is at least on the road to profitability.
BYD is a profitable company. In late 2024, the Chinese automaker reported that its net profit had risen 11.5% during the third quarter of that year on a 24% increase in revenue. That continued the strong year of profitability for the company. Its net profit increased 18.1% through the first nine months of that year.
The company's solid profitability enables it to continue investing in developing new EVs. It also allows BYD to return cash to investors via dividends and share repurchases.
Does BYD pay a dividend?
BYD pays a dividend. The Chinese EV company makes an annual dividend payment based on its profit from the previous year.
As of early 2025, BYD hadn't yet declared its 2024 annual dividend payment (and it didn't declare an interim dividend that year. However, for 2023, the company made a dividend payment of 3.096 Chinese yuan per share (about $0.43 per share at the exchange rate in mid-2024). That was more than double its dividend in 2022 (RMB$1.142 per share). The company pays its dividend in RMB, which is converted into U.S. dollars for holders in the U.S.
ETFs with exposure to BYD
Active stock picking isn't for everyone. Many people would rather passively invest in a company through a fund. Exchange-traded funds (ETFs) make that easy. Many ETFs enable you to invest in a theme (e.g., transportation ETFs or electric vehicle ETFs) or a broad market index (e.g., the S&P 500 or Nasdaq-100).
Exchange-Traded Fund (ETF)
The bottom line on BYD
BYD is a leader in EVs. It's profitable and growing fast, which could enable the company to continue producing strong returns for investors, including Warren Buffett. However, even though Buffett owns the stock, it might not be right for everyone. Before adding it to your portfolio, you must ensure you're comfortable with the risks of investing in the Chinese EV maker.
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