- Zeekr went public in May 2024.
- Geely is the majority stakeholder in Zeekr, holding 65.7% of the company.
- Geely CEO Li Shufu says that this move will help Geely fend off increasing competition.
Not long ago, Zeekr made a big pomp and circumstance in New York City when it went public and officially launched on the New York Stock Exchange. That feels like a lifetime ago—but it’s only been about a year, nearly to the day. Now, there are rumblings that Zeekr may go private again.
The rumblings come through Chinese social media. Geely Holdings CEO Li Shufu offered for Geely to purchase the remainder of the shares and take the company private. Shufu, who is the majority shareholder of Zeekr Group at 65.7%, says this move would encourage better internal management and streamline resources, which he says would make for a more globally competitive Geely.
Perhaps this is a wise move. Cars like the Zeekr 007 GT or Lynk & Co Z20 are strong vehicles in their own right, but it’s not quite clear how Geely corrals all of its brands. Lately, there’s been some consolidation—Zeekr and Lynk & Co have been merged into one group, but there’s definitely a need for more under the Geely umbrella. Zeekr is responsible for a lot of Geely Group’s best EV development, and cross-brand collaboration should make for better collaboration. At the very least, now Zeekr won’t be subject to the whims of public shareholders.
The markets have reacted well to the news, too. The stock was up about 11% since its announcement to around $25 per share. For reference, the Zeekr stock opened last May at $28 per share. Its stock peaked on March 11 this year at about $33.
Geely would need to come up with $2.2 billion to purchase the remainder of the brand’s stock. Despite going private, Shufu says that Geely and Zeekr will maintain cooperation and collaboration with US and international financial markets.
Could this be the start of China’s great consolidation? Geely has three different Sino-Swedish premium EV brands under its umbrella alone. This doesn’t include other brands like Smart, Lotus or the three different mid-range brands like Farizon, Radar or Geely Galaxy.
There are too many brands. This can’t be sustainable.
Contact the author: Kevin.Williams@InsideEVs.com
