Geely’s Strategic Shift: Taking EV Startup Zeekr Private Amid US-China Trade Tensions
Geely Auto, a prominent player in the automotive industry, is looking to take its luxury electric vehicle (EV) unit, Zeekr, off the New York Stock Exchange just one year after its debut. This move aligns with the current geopolitical climate, as the Trump administration is considering measures to limit the presence of Chinese companies on American stock exchanges, amid ongoing trade tensions between the U.S. and China.
Details of Geely’s Take-Private Offer
On Tuesday, Geely made a significant bid to acquire Zeekr, proposing a price of $25.66 per American Depository Receipt (ADS), or $2.566 per ordinary share. This offer represents a 14% premium over Zeekr’s closing price from the previous day, which values the company at approximately $6.5 billion.
- ADS holders have the option to receive 12.3 newly issued Geely shares for each ADS.
- Geely currently holds a 65.7% stake in Zeekr, primarily through its founder, Li Shufu.
- The total payout required for Geely to acquire the remaining shares is about $2.2 billion.
Strategic Advantages of Going Private
Taking Zeekr private presents several advantages for Geely, particularly in navigating the challenges faced by electric vehicle startups in a competitive market. By doing so, Geely aims to:
- Shield Zeekr from potential market fluctuations and geopolitical tensions.
- Consolidate its control over the luxury EV brand.
- Foster a more stable environment for investment and growth.
Current Performance and Future Plans
While Zeekr has not yet disclosed its first-quarter results, the company reported delivering a total of 125,250 vehicles across its two brands—Zeekr and Lynk & Co.—in the first four months of 2025.
Moreover, Zeekr is collaborating with autonomous vehicle leader Waymo to develop a purpose-built robotaxi for extensive deployment in the U.S. Although it remains unclear how a potential privatization might impact their partnership, Waymo recently announced plans to integrate its self-driving technology into Zeekr vehicles at its new facility in Arizona later this year.
Conclusion
Geely’s move to take Zeekr private could redefine the brand’s trajectory in the competitive EV landscape. As the company navigates these strategic changes, stakeholders will be watching closely to see how this impacts both Zeekr’s growth and its collaboration with industry leaders like Waymo.
For more insights on electric vehicle trends, check out our article on electric vehicle market trends.
