If all the manufacturing space BYD has to build cars in China is counted, it would amount to a big percentage of Manhattan island, Munger noted.
Renowned US investor Charlie Munger said Tesla pales in comparison to BYD in China.
"Tesla last year reduced its prices in China twice. BYD increased its prices. We are direct competitors. BYD is so much ahead of Tesla in China, it's almost ridiculous," the longtime Warren Buffett investment partner said.
Munger said this Wednesday at the Daily Journal's virtual annual meeting, when he was asked why he preferred investing in BYD over Tesla. Munger is vice chairman of Berkshire.
"BYD last year made more than $2 billion after taxes in the auto business in China. It's incredible what's happened," Munger said.
"If you count all the manufacturing space they have in China to make cars, it would amount to a big percentage of the Manhattan island, and nobody had ever heard of them a few years ago," he said.
Munger also said BYD CEO Wang Chuanfu is unusual, calling him a genius and a workaholic.
BYD sold 1,863,494 new energy vehicles (NEVs) in 2022, including 946,239 plug-in hybrid passenger cars, 911,140 pure electric passenger cars, and 6,115 commercial vehicles, according to data monitored by CnEVPost.
For comparison, Tesla delivered 1,313,851 vehicles worldwide in 2022, with 439,770 delivered to Chinese consumers.
Berkshire Hathaway Energy, a Berkshire subsidiary, made its first purchase of 225 million shares of BYD on September 29, 2008, at a cost of $230 million and at a price of HK$8 per share.
Berkshire has held the shares for more than 10 years, but has made several reductions in the past few months, with the first coming in August 2022.
"At the current price of BYD stock, little BYD is worth more than the entire Mercedes corporation. It's not a cheap stock, but on the other hand, it's a very remarkable company," Munger said.