Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Geely's EV brand Zeekr raises $500 million in first external funding

Published 2021-08-27, 05:03 a/m
© Reuters. A Zeekr 001 electric vehicle (EV) by Geely is seen displayed at the Zeekr booth during a media day for the Auto Shanghai show in Shanghai, China April 19, 2021. REUTERS/Aly Song
INTC
-
MBGn
-
USD/CNY
-

BEIJING (Reuters) -Zeekr, the electric vehicle brand by Geely, said on Friday it raised $500 million in its first external funding from investors including Intel (NASDAQ:INTC) Capital, battery maker CATL and online entertainment firm Bilibili.

Led by Chief Executive Andy An, who is also Geely's president, Zeekr said investors would jointly hold a 5.6% stake in the company, valuing it around $9 billion. Chief financial officer Yuan Jing told reporters that Zeekr does not currently have a clear plan for its initial public offering.

The company makes the Zeekr 001 model in the eastern city of Ningbo and is expected to start delivering them later this year. It aims to sell 650,000 vehicles a year by 2025.

Investors also included Cathay Fortune Corporation, which invests in mining companies, and private-equity firm Boyu Capital that additionally signed long-term investment partnerships with Zeekr, the carmaker said in a statement.

Zeekr, which targets young and trendy customers, is jointly owned by Geely Automobile and its parent Zhejiang Geely Holding Group.

The companies are expected to contribute expertise in intelligent connectivity, batteries, young consumer markets and raw materials, it said.

Car companies globally are working with more tech companies, battery makers and mining firms to develop future products and secure supply of components amid a shift towards electric vehicles (EV).

Zhejiang Geely Holding Group, the owner of Volvo Cars and a 9.7% stake in Daimler AG (DE:DAIGn), and Geely Automobile launched the Zeekr in March this year to compete with EV companies including Tesla Inc and Nio Inc. They jointly invested 2 billion yuan ($308.4 million) into the brand earlier.

Zeekr, like other global automakers, is trying to secure more chips that is used in its vehicles to ramp up production. Its executive said in June that it has sold out of deliveries for this year.

© Reuters. A Zeekr 001 electric vehicle (EV) by Geely is seen displayed at the Zeekr booth during a media day for the Auto Shanghai show in Shanghai, China April 19, 2021. REUTERS/Aly Song

It also has other electric vehicle brands including mass-market Geometry, which saw sales growing in the past months, and premium Polestar.

($1 = 6.4847 Chinese yuan renminbi)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.