BYD, the Warren Buffet-backed Chinese automaker, experienced a 99 percent drop in profits during the third quarter of this year, with a net income of $1.7 million.
The decline was the second greatest on the MSCI Asia Pacific Index. Stock prices fell by 10 percent, the greatest fall since November 2008. BYD’s sales plummeted by 25 percent in September, despite sales in the Chinese auto market rising by 19 percent.
This news is the latest in a chain of misfortunes for BYD. Seven of their facilities were recently seized by the Chinese government, on the grounds that they were built illegally. Also, the Chinese government revised their tax policy not long ago, negatively affecting most local brands.
BYD has also had to delay their plans to bring the e6 electric car to the US. Originally, they wanted to have the car rolled out by the end of this year. Now, they’re aiming to have it out sometime next year.
Despite these major downfalls, Warren Buffet believes the company will become a leader in the EV segment.