Zeekr Could Overtake Nio and XPeng in Annual Sales This Year

Zeekr Intelligent Technology's total sales in 2024 could likely overtake those of Nio and XPeng, Goldman Sachs analysts write in a note.

The brokerage forecasts Zeekr's total deliveries in 2024 at 215,000 units, thanks to the successful relaunch of the Zeekr 001 electric vehicle and the start of delivery for the Zeekr 007 EV. The company also plans to launch two models every year starting this year.

In addition, Zeekr benefits from the factory capacity of its parent, Geely, which helps ease its capex burden, the analysts add. The Chinese maker of premium fully electric vehicles has higher margins than Nio and XPeng, thanks to Geely's mature supply chain which helps lower its production costs.

GS initiates a buy rating on the stock with a target price of USD34.00.