In a significant development within the electric vehicle sector, Geely Auto, a prominent Chinese automotive manufacturer, is planning to take its luxury electric vehicle division, Zeekr, private. This decision comes just a year after Zeekr’s initial public offering on the New York Stock Exchange, highlighting the shifting dynamics in the global automotive market.
The move to privatize Zeekr is particularly timely, as the current geopolitical climate has seen increasing scrutiny of Chinese companies operating in the United States. The ongoing trade tensions, characterized by tariffs and regulatory challenges, have prompted many firms to reconsider their public listings in America. Geely’s decision reflects a strategic response to these pressures, aiming to safeguard its interests in a volatile market.
On Tuesday, Geely proposed a buyout offer of $25.66 per American Depository Receipt (ADS) of Zeekr, translating to approximately $2.566 per ordinary share. This offer represents a premium of about 14% over Zeekr’s closing price from the previous day, valuing the company at an impressive $6.5 billion. Additionally, ADS holders have the option to exchange their shares for newly issued Geely shares, further incentivizing the transition.
By taking Zeekr private, Geely stands to benefit significantly while minimizing potential risks associated with public market fluctuations. Currently, Geely holds a substantial 65.7% stake in Zeekr, primarily through its founder, Li Shufu. This means that acquiring the remaining shares would require an investment of around $2.2 billion, a strategic move that could bolster Zeekr’s resilience in a competitive electric vehicle landscape.
Although Zeekr has not yet disclosed its first-quarter performance, the company has reported delivering a total of 125,250 vehicles across its two brands, Zeekr and Lynk & Co, in the first four months of 2025. This impressive figure underscores the growing demand for electric vehicles and Zeekr’s potential in the market.
Furthermore, Zeekr is collaborating with an autonomous vehicle technology firm to develop a specialized robotaxi for large-scale deployment in the United States. While the implications of Geely’s privatization move on this partnership remain unclear, the two companies are actively working to integrate advanced self-driving systems into Zeekr’s vehicles, indicating a commitment to innovation and market leadership.