Chinese BYD Shares Bungee After Fatal Electric Car Crash

By Benjamin Reeves | May 29 2012 10:22 AM

Shares of Chinese electric carmaker BYD Company Ltd. (Hong Kong: 1211), which is partially owned by Warren Buffett, recovered some of the losses suffered after one of its e6 electric cars caught fire in a crash which killed three people in southern China.

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Models pose next to a Chinese BYD E6 car at the Guangzhou Autoshow November 23, 2009. China's car makers hope Beijing will renew strong economic incentives that propelled China's car sales to record levels this year even in the face of the global downturn.

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Shanghai-based BYD's shares plunged almost 10 percent on Monday, ending the day down 6 percent, before recovering most of its losses to reach 16.08 HKD ($2.07) Tuesday morning. U.S. investor Warren Buffett previously took a $232 million, 9.9 percent stake in the Chinese electric car company, according to Reuters.

The electric BYD e6 taxi, which crashed Sunday, has passed regulatory tests in China which require that the battery modules not ignite at less than 50 percent deformation.