Berkshire Hathaway has acquired an enormous stake in a company that many expect to take advantage of increasing electric vehicle sales.
Warren Buffett’s Berkshire Hathaway (BRK.A) – Get Free Report has significantly upped its stake in electric vehicle growth.
It did it, however, in a bit of an indirect way.
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In January, Berkshire Hathaway invested $8.2 billion in Pilot Travel Centers. After having purchased a 38.6% stake in 2017, the latest Pilot buy amounted to a 41.4% stake, bringing Berkshire’s ownership to 80%.
Last year, Pilot partnered with General Motors (GM) – Get Free Report to increase access to electric vehicle charging by installing and operating 2,000 charging stalls across the country.
The plan is for the charging stalls to be powered by EVgo (EVGO) – Get Free Report and to be open to all electric vehicle brands. The locations will exist along U.S. highways that connect urban and rural communities from coast to coast.
“We are committed to an all-electric, zero-emissions future, and ensuring that the right charging infrastructure is in place is a key piece of the puzzle,” Mary Barra, GM chief executive officer, said in a July 14, 2022 statement. “With travel centers across North America, Pilot Company is an ideal collaborator to reach a broad audience of EV drivers.”
Berkshire discussed the deal in its 2022 annual report.
“During 2022, Pilot entered a partnership with General Motors Company to develop a nationwide electric vehicle fast charger network of 2,000 charging stations in 500 U.S. locations by 2026,” the report said. “Pilot also signed a letter of intent with Volvo during 2022 in a partnership to develop a nationwide public charging network to support the expansion of battery-powered electric trucks.”
“Pilot is the largest operator of travel centers in North America (primarily under the names Pilot or Flying J) with more than 650 travel center locations across 44 U.S. states and six Canadian provinces,” the report further explains.
“Pilot also has over 150 retail locations in the U.S. and Canada where it sells diesel fuel through various arrangements with third party travel centers. Pilot sold over 13 billion gallons of fuel in 2022 (primarily diesel and gasoline). Pilot has approximately 25,500 employees.”