Chinese automaker’s IPO is the most talked-about EV debut of the year

Geely-owned Zeekr made a grand entrance into the U.S. market with its debut on the New York Stock Exchange, becoming the first major Chinese company to list in the U.S. since 2021. The luxury EV brand saw its stock price surge by 38% in the initial minutes of trading, reaching a potential valuation of $7 billion.

Despite the softening demand for electric vehicles, investors showed enthusiasm for Zeekr’s high-quality, low-price offerings. The company managed to raise $441 million by selling 21 million shares, indicating strong investor sentiment. These funds will support Zeekr’s expansion plans outside of China, with a focus on entering the European market in 2024.

While Zeekr has not disclosed any plans for launching EVs in the U.S., the company has partnered with Waymo to develop an all-electric, self-driving ride-hail vehicle. This collaboration highlights Zeekr’s commitment to innovation and technology in the EV space.

However, Zeekr’s success is not without risks. Operating at a loss and facing regulatory challenges in both China and the U.S., the company must navigate geopolitical tensions and regulatory hurdles to maintain its market position. Concerns about data security and potential government influence pose additional challenges for Zeekr as it seeks to establish itself as a major player in the global EV market.

As Zeekr continues to expand its international presence and explore new opportunities, the company must address these challenges to ensure its long-term success in the competitive EV industry.