Burry Increases BYD Position, Calling It Potentially the World's Lowest-Cost Automaker
nashnova research
Michael Burry — the investor who called the 2008 subprime crisis — disclosed he has added to his BYD (01211.HK) position, arguing that its vertical integration model could make it the world's lowest-cost carmaker. For a stock whose valuation has long been dwarfed by Tesla's, this is a clear re-rating signal.
Why did Burry pick BYD?
Burry's thesis boils down to one line: through scaled vertical integration, BYD can become the lowest-cost automaker on the planet.
Vertical integration — making its own batteries, chips, and motors instead of buying them — means BYD controls every link of the supply chain. This means → when raw-material prices swing, BYD absorbs far less cost shock than rivals who depend on outside suppliers.
In plain terms = most carmakers assemble; BYD builds end-to-end. That gives it a structural cost edge.
What is the Blade Battery logic?
Burry highlighted BYD's in-house Blade Battery, which uses lithium iron phosphate — a chemistry free of expensive nickel and cobalt.
He sees Blade as superior on cost and safety versus nickel-manganese-cobalt cells, despite its lower energy density (how much charge a battery stores per unit of weight).
This means → Burry is betting that "good enough and cheap" beats "peak specs but expensive." In mass markets, cost advantage usually matters more than parameter advantage.
BYD vs. Tesla — what does the valuation gap say?
Burry drew a direct comparison: BYD's market cap is far below Tesla's, yet its revenue is larger.
His long-term call: BYD's return on invested capital will hold steady above 10%. He called it "a superbly run, technologically advanced company."
This reflects Burry's view that the market is mispricing BYD — comparable or stronger fundamentals, yet a valuation far below Tesla's.
What are the details and signals of this move?
Burry disclosed the addition on October 6 via Substack, but did not reveal the number of shares or position size.
He had previously said he would buy aggressively if the Hong Kong-listed shares hit HK$75 or lower, provided the thesis still held.
The same portfolio reshuffle included JD.com (JD) and other Chinese names. This means → Burry is not making an isolated BYD bet — he is systematically adding China exposure, which is itself a directional signal worth noting.
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