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Warren Buffett says that he doesn’t want to compete with Elon Musk – and especially Tesla – as he divests from BYD.

Over the last year, Warren Buffett’s Berkshire Hathaway has been divesting from Chinese automaker BYD. Last week, Berkshire Hathaway sold two million BYD shares again.

Following the last sale, Buffett and his number two, Charlie Munger, said that they don’t want to compete with Elon Musk, Tesla CEO, during their annual shareholder meeting (via Business Insider):

“We don’t want to compete with Elon in a lot of things,” Buffett said on Saturday. Munger quickly added on to Buffett’s comment, [saying] “We don’t want that much failure.”

But it’s not just competing with Musk or Tesla. Buffett added that he doesn’t like the auto industry amid the electric transition:

You will see a change in the vehicles, but you won’t see anyone that owns the market because they changed the vehicles.

He added:

Charlie [Munger] and I long have felt that the auto industry is just too tough. It’s just a business where you’ve got a lot of worldwide competitors, they’re not going to go away, and it looks like there are winners at any given time, but it doesn’t get you a permanent place.

It sounds like BYD might have been a one-off, and we will not see Berkshire Hathaway invests its billions in the auto industry again.

Electrek’s Take

To be honest, I wouldn’t take this as a bad sign for BYD or even a compliment to Musk or Tesla.

That’s just Buffett. He doesn’t like high-tech competition other than Apple, probably mostly because he doesn’t understand it very well. He made most of his money from oil stocks, banks, and Coca-Cola.

He notoriously prefers safe investments, and in this case, he is literally saying that the auto industry is just too difficult for him to invest in.

Personally, I don’t respect that. It’s just about making money for the sake of making money. I prefer people who invest in things because they believe it should be the future, like electric vehicles.

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Elon can’t get it up (past 325 kW), BP can, and GM hopes to keep it up in 2025

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Elon can't get it up (past 325 kW), BP can, and GM hopes to keep it up in 2025

Despite mocking 350 kW as “a child’s toy” in 2016, the company is just rolling out 325 kW V4 chargers in 2025. Meanwhile companies like BP are celebrating 400 kW installations along major highways – and they’re making money doing it. All this and more on today’s thrilling January 47th episode of Quick Charge!

We’ve also got a blast from the past in the form of one of my first Electrek article from way back in 2022, GM’s performance making TSLA look like a meme stock, and a massive lithium project in the Heartland.

Prefer listening to your podcasts? Audio-only versions of Quick Charge are now available on Apple PodcastsSpotifyTuneIn, and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.

Got news? Let us know!
Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show.

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After delays, the VW ID.7 now won’t be coming to the US at all

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After delays, the VW ID.7 now won't be coming to the US at all

Volkswagen has officially cancelled the long-delayed ID.7 electric sedan in America, instead focusing on selling it in Europe and China.

The ID.7 is VW’s electric mid-size sedan offering, currently available (and selling well) in Europe and also in China.

Previously the ID.7 had been intended to launch in 2024 in North America, after launching in Europe in 2023. But when launch time came close, VW delayed the North American debut of the model indefinitely last May.

As recently as October, VW America’s boss Pablo Di Si (who has since moved on) said that the ID.7 could still come in 2025.

But now we know that that indefinite delay is now fully definite: the model has been canceled in the US and Canada.

The news was broken yesterday by The Car Guide, speaking with a VW Canada representative. We’ve since reached out to VW, who confirmed the news to us.

Automotive News quoted a VW spokesperson saying the decision was made due to “the ongoing challenging EV climate.” Last year in North America, EV sales grew by 9%, faster than the overall auto market which grew at 2.5%, suggesting that the market is in fact more challenging for non-EVs than EVs at the moment. Further, gas car sales have been in long term decline since 2017, whereas EV sales have risen drastically in that time period.

That growth was achieved with very few available sedan models as well, with almost every EV available in America being an SUV-type. Adding additional model availability could open up the market to more buyers who want a right-sized vehicle instead of a land yacht.

But VW has been having a challenging time itself in the US. Until recently, it only offered a single SUV model, the ID.4, in the US. While the ID.4 has brought a lot of upgrades recently, it’s also one of the few vehicles whose sales were down in a growing market (which was true even before the stop sale which has now been lifted after fixing a door handle problem). Perhaps VW could have benefitted from offering a vehicle in a different format.

VW had previously blamed its delay of the ID.7 on “market conditions.” It didn’t specify which market conditions it was referring to, but we have some suspicions.

Manufacturers have a belief that Americans only want SUVs (or so they say – really, this is at least partially driven by emissions rules), and the ID.7 is not one. Although VW at one point did try to portray it as one – when we first saw the ID.7 it was in the guise of the “Space Vizzion” concept, and VW said it “combines the aerodynamic qualities of a Gran Turismo with the generous interior space of an SUV,” trying to leverage Americans’ supposed desire only for land yachts by portraying a somewhat more sensible wagon as something it’s not.

That said, the car likely would have been higher-priced than the ID.4, as it is in Europe. The best-selling electric sedan in the US is the Tesla Model 3, with few other options outside of the luxury market. The ID.7 could have offered an alternative for buyers who are looking for something that isn’t associated with Tesla CEO Elon Musk, but its likely high starting price might have limited that appeal.

But while this is a disappointment for those of us waiting for more right-sized electric vehicles, it doesn’t mean the end for new VW EVs in the US. Automotive News quoted a VW spokesman as saying that “electric vehicles continue to be a core part of Volkswagen’s long-term product strategy, and new electric models will continue to be introduced for this market.” So, stay tuned for more.

Well, if you still want an electric VW, there’s always the ID.4. To contact a local dealer and see if they have any VW ID.4s ready to sell, feel free to use our linkYou can also reach out about the ID.Buzz, if a quirky electric minivan is more your speed.


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Shares of Nextracker soar on stellar earnings. What we need to see before upgrading the stock

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Shares of Nextracker soar on stellar earnings. What we need to see before upgrading the stock

Justin Paget | Digitalvision | Getty Images

The sun is shining on Nextracker in extended trading Tuesday, as shares soared after the solar technology company reported a top and bottom line beat for its fiscal third quarter. Even better, management increased its full-year profitability outlook and reported a record backlog.

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