Warren Buffett-Backed BYD Says It's Discussing Cooperation With Xiomi On EVs

BYD Co Ltd BYDDF is in talks with smartphone maker Xiaomi Corp XIACF on a number of projects to build cars, cnEVpost reported on Sunday, citing the Chinese automaker’s Chairman and President Wang Chuanfu.

What Happened: Chuanfu said the two companies have a strategic partnership and BYD supports Xiaomi’s car development plans and they are negotiating some cooperation projects in the car field.

Why It Matters: Xiaomi plans to bring its first electric vehicle to market in 2023. The move is being seen as part of efforts by one of the world’s largest smartphone makers to diversify and gain a foothold in the growing Chinese electric vehicle category.

See Also: Warren Buffett-Backed BYD Records 126% YoY Jump In May EV Sales; Outdoes Nio, Xpeng, Li Auto Sales Combined

BYD, backed by Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B) Chairman Warren Buffett, already makes electric vehicles and its chairman had earlier said a “good strategic direction” is essential for new tech players to take fewer detours when foraying into the electric vehicle space to avoid losing money and waiting time.

Chuanfu said his earlier comments were misinterpreted by the media as that he had persuaded Xiaomi founder Lei Jun to give up building cars.

Price Action: Xiaomi shares fell 1.66% lower at $3.55 on Friday. BYD shares closed 1.3% higher at $55.35 on Friday.
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Photo: Courtesy of BYD