Sanction or Leak? The Strange Operation of the Chinese Company Geely in the United States
This page is translated from the original post "Sanction ou fuite ? L’étrange opération du chinois Geely aux États-Unis" in French.
- 09/05/2025 18:18
Geely announced its intention to buy back all shares of its subsidiary Zeekr to delist the brand from the American stock exchange.
Less than a year after Zeekr’s IPO in New York, the Chinese automotive giant Geely, which remains the main shareholder of the manufacturer, announces that this privatization operation aims only to simplify its activities and better utilize its resources, but the explanation is shaky on multiple counts.
Zeekr, specialized in high-end electric vehicles, is gaining popularity abroad, both in Europe and the United States. During the recent Shanghai Motor Show, it showcased its latest models and conducted road tests. All it takes to convince potential customers, and the opposite of its cautious attitude in the United States! Because the IPO was not followed by any particular commercial operation. A simple fundraising that boosted the brand’s coffers. To succeed or fail, at least they tried!
Geely in the USA without really being there
Defying all business logic, this hasty decision is undoubtedly linked to tariffs imposed by President Donald Trump on Chinese products, which increased costs for brands like Zeekr and hindered their competitiveness in the United States. By withdrawing from the American market, Zeekr can focus on Europe and Asia, where conditions are more favorable. Meanwhile, Geely can still rely on Volvo to maintain a presence in the US soil while waiting for better days.
In the meantime, Geely, which still holds 65% of Zeekr, has estimated this operation at $2.2 billion. A colossal sum and a move that will inevitably impact the stock prices of other manufacturers, especially those flying the American flag. Zeekr and Geely plan to disclose all details of this operation on May 15, 2025, during the release of their first-quarter 2025 financial results. In the meantime, the announcement caused Zeekr’s stock value to surge, with investors sensing the opportunity. Over the coming week, we can expect a speculative frenzy around the stock, creating chaos in the market and reshuffling the valuation cards of automotive industry players. A wild mess as Zeekr’s farewell gift.
We also suggestthese articles:
Also read
