The Chinese electric car brand Zeekr, a subsidiary of the automaker Geely, has made an impressive IPO on Wall Street, closing its first trading day with a significant price gain. Despite a weakening market for electric vehicle manufacturers, Zeekr started with an increase of up to 40 percent above the issue price of 21 US dollars, closing at 28.26 US dollars.

The IPO Brought Zeekr Approximately $441 Million After the Company Had Originally Planned to Sell 17.5 Million Shares but Instead Issued 21 Million. This Expansion Reflects Strong Investor Interest, Despite a Valuation of Just Around $5.2 Billion – a Significant Drop from $13 Billion in 2023.

Zeekr thus stands in contrast to many other electric car manufacturers whose stock prices have significantly fallen in 2024, including prominent names like Tesla, Rivian, and Lucid Motors, as well as Chinese rivals Nio and Xpeng. The industry is characterized by a slowed demand dynamic and an intense price war, especially in China, which is eroding the profit margins of many manufacturers.

In light of these challenges, Zeekr plans to expand its presence outside of China, especially in the USA and Europe. Currently, the company generates the majority of its revenue in the domestic market, while the European revenue primarily comes from batteries and other components.

The financial picture shows a rapid revenue growth of 60 percent in 2023 to seven billion US dollars, however at a loss of around 1.2 billion US dollars. As the parent company, Geely continues to provide strong support and remains the largest shareholder with a purchase of shares valued at 271 million US dollars.

The announcement of the successful IPO highlights Zeekr's ambitions to prevail as an innovative player in the global electric car industry despite the tense market situation and to advance its international expansion.