Syed Imran Haider 
Chinese ev maker Zeekr,, made its debut in the US market on Friday, which is the first major debut in the market by a Chinese firm since 2021.
Its initial public offering saw its share price soar by more than 35%, as Zeekr managed to pull off its US flotation successfully, as it aims to stand out amongst other Chinese electronic-vehicle makers.
The launch
Ironically, the company’s first day of trading comes at a time when the administration of US President Joe Biden is planning on increasing tariffs on Chinese vehicles imported to the US.
Zeekr’s CEO, Conghui An, said that New York’s capital markets are favorable for new energy vehicles and Zeekr was demonstrating its global capabilities by listing in New York.
Chinese automaker Geely Holding Group is the parent company of Zeekr, which also owns UK’s Lotus and the Swedish brand Volvo Cars.
According to its IPO filing, it had been launched in 2021 for tapping into the rising Chinese demand for premium models and 200,000 cars have been delivered since then.
EV makers have seen their profits erode in China due to intense competition amongst domestic rivals as well as Tesla and this has driven them to other markets for the purpose of expansion.
The competition
With its debut in the US market, the fully diluted valuation of Zeekr now stands at $6.8 billion, which is half of the amount it had raised via a founding round last year of $13 billion.
Chinese automakers Great Wall Motor, SAIC and BYD are all aiming at Europe, as they have launched electric models to compete with legacy European automakers on their turf.
Recent years have seen a rise in Chinese EV sales in Europe. According to Zeekr’s CEO, its parent company wants to become this era’s Volkswagen Group.
In comparing the company to the top automaker in Europe, he said that Chinese ev maker Zeekr, aims to focus on the luxury EV market segment.
EV challenges
In recent months, there has been a substantial decline in the shares of EV companies in the US, which includes Tesla that has seen its share price drop by 30% so far this year.
Rivian Automotive had its IPO back in November 2021, but it has lost 85% of its value since then and Lucid Group has also seen its value decline.
However, Chinese ev maker Zeekr, managed to upsize its IPO, which shows there is strong demand from investors. It managed to raise $441 million after selling 21 million American depository shares.
Since the beginning of the year, the company has seen its deliveries surpass its competitors. In the first four months, Zeekr delivered a total of 49,148 vehicles.
During the same period ending on April 30th, Xpeng and Nio delivered a total of 31,214 units and 45,673 cars, respectively.
The share flotation comes as tensions between the two biggest economies of the world are rising over matters of intellectual property, trade and their stance on the Russia-Ukraine war.
There has been a decline in the number of Chinese companies pursuing stock market flotations in the United States.
