2 reasons why shares of the Warren Buffett-backed electric vehicle maker BYD jumped today
Shares of BYD (OTC:), a China-based company backed by Warren Buffett, closed up 3.6% today in Hong Kong.
First, the company announced that it had stopped manufacturing combustion engine vehicles from March and would now focus on producing all-electric and plug-in hybrid vehicles.
“Going forward, BYD will focus on pure electric and plug-in hybrids in the automotive sector,” BYD said in a statement filed on the Hong Kong Stock Exchange on Sunday.
China’s biggest electric vehicle (EV) maker won’t stop producing gasoline engines altogether, as it plans to use smaller variations of the engine in its plug-in hybrids. The move comes after the Chinese government pledged to increase green energy consumption and reduce carbon emissions.
BYD is one of six global automakers, including Volvo, GM, Mercedes, Ford and Jaguar Land Rover, that have pledged to stop manufacturing motor vehicles altogether by 2040.
Second, BYD recorded 104,878 sales of its new energy vehicles (NEVs) in March, marking a significant jump from 24,218 a year ago and its record number of monthly sales.
March sales included 53,664 pure electric cars and 50,674 plug-in hybrid cars as well as 540 commercial NEV cars.
Additionally, the company added that it will continue to provide service and spare parts to existing customers who have purchased combustion engine vehicles.
By Senad Karaahmetovic