Benzinga | Nov 3, 2021 09:13AM EDT

Chinese Consumers' Favorite EV Brand Is Not Tesla Or Nio But This Warren Buffett-Backed Company

Warren Buffett-backed Chinese automaker BYD Co (OTC:BYDDY) has raced past Tesla Inc (NASDAQ:TSLA) and Nio Inc (NYSE:NIO) as the favorite electric car brand among Chinese buyers, CNBC reported on Tuesday, citing a survey by brokerage Bernstein.

What Happened: BYD bagged the No. 1 spot as the favorite electric vehicle brand among Chinese buyers in the third quarter in a survey conducted by Bernstein. Elon Musk-led Tesla emerged as the second favorite followed by German automaker Volkswagen Group (OTC:VWAGY) at the third spot.

The research firm surveyed 1,600 respondents in China's large cities, earning an average monthly income of about RMB 19,000 ($2,969) and 32 years of age.

Intent to buy an electric car from a Chinese start-up like Nio or Xpeng doubled this year to about 9.5% of those surveyed, up from around 5% for the last few years.

See Also: Volkswagen Beats Xpeng, Li Auto And Nio Numbers For Octobers With Its ID. Series Deliveries In China

Why It Matters: BYD has been focusing on ramping up its new energy vehicle (NEV) portfolio -- including electric vehicles -- significantly as it sees lower demand for internal combustion engine vehicles.

Buffett-led Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B) has backed BYD for over a decade and holds about 22% stake in the Hong Kong-listed company.

While Buffett bet on BYD early, his investment firm does not have any exposure in Musk-led Tesla. Musk had last month suggested that the billionaire investor should be investing in his electric vehicle company.

BYD and Tesla are yet to report delivery numbers for October. Nio said it delivered 3,667 vehicles in October, down more than 65% from September. Volkswagen sold 12,736 locally made ID. series electric vehicles in China during the month of October

Price Action: BYD shares, which have risen 36% year-to-date, closed 1.95% higher at $76.42 a share on Tuesday. Tesla shares are up 60.59% so far this year and closed 3.03% lower at $1,171.97 a share on Tuesday.

Photo: Courtesy of BYD