2024-07-16 07:02:38 ET
Summary
- Zeekr's IPO was in May. I rate it a "hold" because it is not a stand-alone company but rather an integral part of the Geely group.
- For years, Geely was China's dominant private car company. The Geely group has regained traction and is now 3rd, behind the VW group and the BYD group.
- Historically, Geely used new products and acquisitions to experiment, dropping things that failed. They can't do that as readily with publicly traded subsidiaries, cf. the floundering Polestar.
- Li Shufu controls Geely via the privately held Zhejiang Geely. It's diversified, but the Geely group is focused on automotive. Brands/firms include Geely, Zeekr, Lynk, Geometry, Polestar, and many others.
- Zeekr isn't a standalone firm. It uses Geely platforms and factories, and holds a specific strategic position within the group. I like Zeekr, but upside is limited. Hold.
Introduction
InsideEVs' Kevin Williams has a very favorable review of the new Zeekr X , which extends the existing lineup of the Zeekr 001, Zeekr 007 and Zeekr 009. Its addition will support the brand. The key question, however, is whether good products make Zeekr ( ZK ) a good investment.
I suspect not.
Above all, Zeekr is not a stand-alone company, but rather a constituent of the Geely ( OTCPK:GELYF ) group (itself the core automotive portion of the privately-held Zhejiang Geely Group). That limits its upside potential....
Read the full article on Seeking Alpha
For further details see:
ZEEKR And Geely: China Autos Q2 2024