Geely Offers $2.2B to Take Zeekr Private Amid EV Market Shake-Up

Chinese automaker Geely Automobile has offered $2.2 billion to privatize Zeekr, its premium electric vehicle (EV) brand, just a year after its U.S. IPO. The move values Zeekr at $6.52 billion and offers $25.66 per American Depositary Share—13.6% above Tuesday’s close. Zeekr shares surged over 11% in U.S. premarket trading following the announcement.

As of May 7, Geely owns 65.7% of Zeekr and plans to acquire the remaining 34.3%, aiming to merge the brand fully into Geely Auto (HK:0175). The move reflects Geely’s strategy to consolidate operations and reduce internal competition amid intensifying EV price wars in China. Chairman Li Shufu cited the “Taizhou Declaration” as a guiding principle for strategic integration and efficiency.

Founded in 2021, Zeekr targets the premium EV market, leveraging Geely’s in-house technology, from EV platforms to batteries. In Q1 2025, Zeekr sold 41,403 vehicles, a 25% increase year-over-year, surpassing BYD’s premium brand Denza. The brand went public in May 2024 at a $6.8 billion valuation, marking the first major U.S. listing by a Chinese firm since 2021.

However, geopolitical risks loom. Zeekr was recently named in a letter by U.S. lawmakers urging the SEC to delist 25 Chinese companies over alleged military ties, reigniting delisting concerns for over 100 Chinese firms on U.S. exchanges, valued collectively at $1 trillion.

Geely is also restructuring its operations into two core units—Geely Auto for the mass market and Zeekr Group for premium EVs. In March, it merged three R&D units to boost innovation in digital cockpit systems. This streamlining signals Geely’s pivot from expansion to operational focus amid rising global trade tensions and industry disruption.