Geely to take EV startup Zeekr private

Geely Auto, a Chinese automotive company, plans to take its luxury electric vehicle unit, Zeekr, private from the New York Stock Exchange.

The proposal, outlined in Zeekr’s regulatory filings, comes one year after the unit’s initial public offering.

Geely has offered US$25.66 per Zeekr American Depository Receipt (ADS), which equals US$2.566 per ordinary share.

This price represents a 14% premium over Zeekr’s closing price on May 5, 2025 valuing the company at approximately US$6.5 billion.

Alternatively, ADS holders can choose to receive 12.3 newly issued Geely shares per ADS.

Currently, Geely holds a 65.7% stake in Zeekr through its founder, Li Shufu.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ Chinese EV makers recalibrating US strategies amid intensifying trade barriers

Geely’s move to take Zeekr private comes amid significant trade tensions that have reshaped China’s EV industry approach to American markets.

Chinese imports to the US have already fallen from 21% of total US imports in 2016 to just 13% in 2024 as a direct result of ongoing tariff battles 1.

This trend is particularly challenging for Chinese EV makers like Zeekr, whose competitively priced vehicles (the Zeekr 007 EV sedan at $36,000) could challenge Tesla’s dominance but face substantial tariff barriers to US market entry 2.

The delisting strategy reflects a broader recalibration by Chinese companies facing an increasingly unpredictable US regulatory environment, with concerns about intellectual property protection and technology transfer driving stricter American oversight of Chinese businesses 3.

The Geely-Zeekr situation demonstrates how geopolitical tensions are forcing automotive companies to reconsider their global integration strategies, potentially accelerating the regionalization of supply chains and markets.

2️⃣ The surge of domestic EV investments signals manufacturing power shifts

While Chinese EV makers face US market challenges, domestic American EV manufacturing is seeing unprecedented investment, with $210 billion committed to US electric vehicle production by 2030 4.