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A new Chinese EV stock jumped 30% after its IPO.
Zeekr (NYSE: ZK) opened for trading this afternoon.
Zeekr is working on a Robotaxi with Google. And they’re racing to catchup with Tesla’s new Robotaxi initiative.
The Zeekr IPO was priced at $21. And the stock began trading at $26.
The company raised $441 million in capital through the Initial Public Offering.
Investors were excited for the IPO. And the deal was oversubscribed.
The IPO values Zeekr at around $6.4 billion.
Most Americans have never heard of Zeekr.
The company is a rapidly growing Chinese EV company.
They sold 49,000 EVs during the first 4-months of 2024. That marked a 111% increase in the last year.
Total deliveries this year should reach 230,000 – double the number sold last year.
It’s unlikely that Zeekr EVs will be sold in the U.S.
There’s currently a 25% tariff on Chinese EVs. And President Biden plans to increase that to 100% next week.
That move would make it cost-prohibitive for Chinese EVs to be sold in the U.S. market.
Zeekr may be getting a boost on its IPO day. However, Chinese EV stocks have been a horrible investment in recent years.
Zeekr is scrambling to catchup with Tesla on its self-driving and Robotaxi initiative. And that’s why it’s working with this secret technology partner.
Every automaker realizes that self-driving cars are coming soon.
Ian