Geely Aims to Make EV Startup Zeekr Private Amidst US-China Trade Strains

Geely Auto from China intends to delist its luxury electric vehicle division, Zeekr, from the New York Stock Exchange just a year following its initial public offering, as per recent filings from Zeekr.

This decision to take the company private aligns with discussions within the Trump administration regarding the removal of Chinese firms from American stock markets, a strategy intertwined with ongoing trade tensions highlighted by tariff disputes between the U.S. and China.

On Tuesday, Geely suggested a purchase price of $25.66 for each Zeekr American Depository Receipt (ADS) or $2.566 per ordinary share, reflecting a 14% premium above Zeekr’s closing price on Monday. This deal values the company at around $6.5 billion. ADS holders can opt to receive 12.3 newly issued shares of Geely for every ADS.

By opting for privatization, Geely seeks to mitigate potential geopolitical risks while enjoying significant advantages from this acquisition, presenting minimal associated risks. Given that Geely already controls 65.7% of Zeekr through its founder, Li Shufu, the company would only require an investment of approximately $2.2 billion to acquire the remaining shares. This move could enhance Zeekr’s ability to withstand competition in the EV market and protect Geely’s financial investments.

While Zeekr has not yet published its first-quarter financial statements, it announced the delivery of 125,250 vehicles across its two brands — Zeekr and Lynk & Co — within the first four months of 2025.

Zeekr is partnering with Waymo, a leader in autonomous vehicles, to create a specialized robotaxi for widespread deployment in the U.S. Although no information has been provided on whether the shift to private ownership will affect their collaboration, Waymo previously revealed plans to integrate its self-driving technology into Zeekr vehicles at a new facility in Arizona later this year.