Founder Of China’s Tesla Rival BYD Once Drank Battery Fluid To Impress Warren Buffet Aide: Report
Wang Chuanfu, the founder of Chinese automaker BYD, has gained prominence in the automobile industry. BYD is emerging as a strong competitor to Elon Musk’s Tesla in the electric vehicle (EV) space. However, according to a report in The Wall Street Journal (WSJ), Wang drank a glass of battery fluid to impress a member of Warren Buffet’s team, who had visited Shenzhen to assess whether the company was worth investing in.
BYD, which stands for “Build Your Dreams,” initially started as a battery manufacturer in 1995. However, in 2003, it shifted its focus from being the world’s largest manufacturer of rechargeable mobile phone batteries to the automotive sector.
As per Financial Times (FT), the company is now on track to surpass Tesla in terms of vehicle sales. In July, Forbes reported that BYD’s stock rose by 90% amidst the ongoing Covid-19 pandemic, generating profits of $7 billion for Wang. Currently, his personal wealth is valued at over $25 billion, making him the 22nd richest person in China, according to FT.
In the automobile business, Wang replicated his battery manufacturing model to keep costs low. This caught the attention of Warren Buffet, who sent one of his aides, David Sokol, to Shenzhen in 2008 to explore BYD’s potential. During the visit, Wang showcased his factories and saw an opportunity to expand to other markets, including the US.
According to WSJ’s report, while demonstrating the safety of BYD’s batteries and their environmental friendliness, Wang poured himself a glass of battery fluid and drank it in an attempt to impress Sokol. However, the mixture tasted unpleasant, and Sokol declined the offer to try it.
In September of the same year, Berkshire Hathaway, owned by Warren Buffet, invested $232 million to acquire a 10% stake in BYD through its energy unit.
Wang, born in 1966 in Anhui province, faced hardship during his childhood, being raised by older siblings after the death of both his parents.