Chinese EV, Zeerk debuts on the NYSE surging 34%, despite Biden planning to increase Chinese EV tariff
It was a cracking open for Zeekr $ZEEKR (ZK.US)$ on the NYSE after floating, with their shares surging 34% in a day. They came on at $21 and closed at $28.26 just a day after their IPO. Very clever and well played by Geely, the parent company.Geely is the parent company of Volvo, Polster and Lotus as well, just to name a few. We cover what you need to know about the third most popular EV in China, its numbers and what could be ahead.
Just a reminder Zeekr $ZEEKR (ZK.US)$ is the third most popular EV in China by sales. Zeekr launched in Europe very recently, and plans to launch in Australia later this year, as well as the Middle East, aiming to take make share from high end brands such as Audi and BMW.
Zeekr is positioned as apremium electric vehicle brand and is an important pillar supporting Geely's electric transformation.
Zeekr's parent Geely $GEELY AUTO (00175.HK)$ has skills, experience and know-how in creating iconic brands and becoming a sustainable and household now. We saw Geely do this with Volvo and Lotus.
There are huge demands and opportunities in the global new energy vehicle market.
What you need to know about Zeekr numbers
- Zeekr started delivering its vehicles in October 2021, and has sold 240,000 vehicles to date.
- As at last count in March, Geely'ss pure EV sales +9.6% y/y to 28,435. Hybrid sales +86% (from 2,150) to 16,356. Total sales YTD +49% from year ago to 475,720.
- Zeekr made total revenue of 51.67 billion yuan ($7.15 billion) in 2023, but a net loss of 8.26 billion yuan.
What about US tariffs on Chinese EVS?
It's not done and dust. At the weekend it was revealed Joe Biden's administration is planning to increase the tariff on electric vehicles from roughly 25% to 100%, basically quadrupling the cost. Plus, an additional 2.5% duty would apply to all automobiles imported into the US. This was according to the Wall Street Journal.
None the less, it's worth keeping an eye on Chinese EV stocks that are available to trade on the NYSE as they could see some heat if Biden slaps on the tariff.
But it seems Zeekr's strategy was not to grow into the US, as they have already began to carve out success in China. So we just need to see if they reve into Europe and Australia as planned.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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