Warren Buffett’s Berkshire Hathaway has fully exited its position in Chinese electric vehicle juggernaut BYD Company, ending a 17-year investment that saw a 3,890% increase in value. The move comes as BYD expands into ultra-luxury segments, signaling a shift in product lineup and market strategy.

BYD’s stock, known for its high-flying performance, saw Berkshire Hathaway begin selling shares in 2022 after years of growth. The Chinese automaker faces challenges as domestic sales dropped for the fourth month in a row, prompting a 16% cut in annual sales targets. Despite this, investors can sell for various reasons, and BYD still shows positive developments.

BYD’s expansion beyond mainstream vehicles includes developing ultra-premium models with prices over $200,000. The company’s success is attributed to vertical integration, controlling its supply chain, and localizing production. This approach has given BYD a competitive edge in speed, flexibility, and cost, driving its financial surge.

Investors holding onto BYD shares can find comfort in the company’s diversified business, which includes manufacturing buses, forklifts, and energy storage solutions. With projections showing a significant increase in EV sales in China, BYD has ample room for growth. The company has yet to enter the U.S. market, potentially offering further strategic opportunities for expansion.

Read more at Yahoo Finance: Is It Time to Throw in the Towel on BYD Company?