Chinese EV maker Zeekr pricing IPO at $21 ahead of NYSE debut
Chinese electric vehicle maker Zeekr (ZK) made its public debut on the New York Stock Exchange today. The company is the first major Chinese EV maker to go public since XPeng Motors (XPEV) and Li Auto (LI) in 2020.
Zeekr is set to sell 21 million shares priced at $21. The company is expected to be a top competitor to Tesla (TSLA), as its CEO Andy An pointed to a narrowing sales gap between the two EV makers. The company has also recently announced plans to expand to Europe and Latin America this year.
Catalysts Anchors Seana Smith and Madison Mills break down Zeekr’s future as the Biden Administration is reportedly set to release new tariffs targeting the China’s electric vehicles sector.
For more expert insight and the latest market action, click here to watch this full episode of Catalysts.
This post was written by Melanie Riehl
Video Transcript
All right, let’s also take a look at a company that’s making its public debut here in the US today.
A Chinese EV maker set to start trading on the New York Stock Exchange.
Ziker will be the first major Chinese EV maker to go public since Xang and Lee Auto went public just about four years ago.
The carmaker set to sell 21 million shares of price at 21 bucks a share after the close last night, last night pricing at the top end of the range.
I’m taking a look right now at the latest developments that we’re getting looks like it’s indicated to open right around 23 to $25 a share here.
We’re waiting for the opening trade here of Ziker.
But Mattie, we bring this up in the context of what this means for so many other companies that are already within the space.
Obviously, specifically Tesla is the name that comes to the top of mind for many people.
When you think about another competitor here within this space now going public, the real threat is viewed at least to Tesla and Zieger posing that huge competition in a recent interview, their CEO was saying that their sales gap with Tesla keeps narrowing, was very optimistic about the company’s plans to expand in Europe and in Latin America this year.
So that also just speaks to that competition side of the story.
And then you also can talk about the pricing wars and exactly what that ultimately means for so many of these larger US auto giants here in the US as well.
Well, it’s really interesting that you bring up the pricing wars because Zer is going to be impacted by this announcement from the Biden administration expecting to put tariffs on Chinese S and those automakers there.
Now, the parent company of Zer has previously indicated that they’re going to subscribe to 90% of the stock indicating that there’s a little bit of stress coming into this IP.
And that’s no surprise given that this, we’ve got this news from the Biden administration today.
It was probably a good move for them.
Given that those geopolitical tensions between China and the US are headwinds that are unpredictable and that are unfortunately going to weigh for them, unfortunately, going to weigh on the stock as the IP O today.
So see some stress across the board there.
