Geely Plans to Take Luxury EV Unit Zeekr Private Amid US-China Trade Tensions

China’s automotive giant Geely Auto has announced plans to take its luxury electric vehicle (EV) unit, Zeekr, private just one year after its debut on the New York Stock Exchange (NYSE). This strategic move comes amid escalating geopolitical tensions and trade disputes between the United States and China, which have placed Chinese companies under increased scrutiny on American stock exchanges.

Geely’s take-private offer values Zeekr at approximately $6.5 billion, with an offer price of $25.66 per American Depository Receipt (ADS), representing a 14% premium over Zeekr’s recent closing price. Shareholders also have the option to receive newly issued Geely shares, strengthening the parent company’s stake and control over Zeekr’s future direction.

Currently, Geely owns 65.7% of Zeekr through its founder Li Shufu, meaning the company needs to acquire the remaining shares at an estimated cost of $2.2 billion. This relatively modest investment allows Geely to shield Zeekr from the volatility and market pressures associated with being a publicly traded EV startup, especially in a highly competitive and rapidly evolving sector.

Zeekr has demonstrated strong market momentum, delivering a combined total of 125,250 vehicles across its Zeekr and Lynk & Co brands in the first four months of 2025. This growth underscores the company’s potential in the luxury EV segment, despite the challenges posed by global trade tensions and tariff disputes.

In addition to its commercial success, Zeekr is actively collaborating with autonomous vehicle pioneer Waymo to develop a purpose-built robotaxi designed for large-scale deployment in the United States. This partnership highlights Zeekr’s commitment to innovation and positions it at the forefront of integrating electric and autonomous vehicle technologies.

While neither Geely nor Waymo has confirmed how the privatization might affect their collaboration, Waymo recently announced plans to integrate its self-driving system into Zeekr vehicles at its new Arizona facility later this year. This development signals ongoing synergy between the two companies, which could accelerate the deployment of autonomous EVs in the U.S. market.

Geely’s decision to take Zeekr private reflects a broader strategic response to geopolitical risks and regulatory uncertainties affecting Chinese companies listed in the U.S. By consolidating ownership, Geely can better manage Zeekr’s growth trajectory, protect its investment from market volatility, and maintain flexibility in navigating the complex landscape of international trade and technology partnerships.

This move also underscores the increasing importance of integrating electric vehicle innovation with autonomous driving technologies, as companies like Zeekr and Waymo collaborate to shape the future of mobility. For investors and industry watchers, Geely’s privatization of Zeekr offers a case study in balancing growth ambitions with geopolitical realities in the evolving EV market.