Michael Burry Adds BYD to Portfolio as EV Competition Stays Intense

what happened

GuruFocus reports that Michael Burry (Trades, Portfolio) opened a position in Chinese automaker BYD Company Limited (BYDDY). The electric-vehicle maker has entered his portfolio as he evaluates its production economics and prospects for international expansion. The portfolio update did not state how many shares he bought or how much the investment was worth. The filing also recorded adjustments to other positions, including JD.com (JD).

A key part of Burry’s interest is BYD’s ability to produce components in-house instead of depending entirely on external suppliers. That model could help the company contain expenses while it seeks customers abroad, where electric-vehicle manufacturers continue to compete intensely. Burry is also considering BYD’s battery technology. The Blade battery is based on lithium iron phosphate chemistry, which he has associated with possible cost and safety benefits, although it has lower energy density than nickel-manganese-cobalt alternatives.

Burry has further described overseas expansion as a way to improve operating efficiency. In an earlier comparison with Tesla (TSLA), he highlighted BYD’s greater revenue despite the Chinese automaker’s smaller market capitalization. The purchase came after his September remark that he was watching BYD but did not own its shares at that time. BYD stock has dropped about 21% over the past year.

why it matters

The transaction highlights Burry’s focus on BYD’s integrated manufacturing, battery design and international expansion. Because the filing omitted the position size, its importance within his portfolio remains unclear.

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