China’s Geely moves to take EV startup Zeekr private amid trade war with US

Tech Crunch - May 8th, 2025

China’s Geely Auto is planning to take its luxury electric vehicle unit, Zeekr, off the New York Stock Exchange, just a year after its debut. This move follows the Trump administration's exploration of removing Chinese companies from American exchanges, part of the ongoing trade tensions between the U.S. and China. Geely has proposed a buyout offer of $25.66 per Zeekr American Depository Receipt (ADS), or $2.566 per ordinary share, representing a 14% premium over Zeekr’s recent closing price. The deal values Zeekr at $6.5 billion, with Geely needing to pay approximately $2.2 billion to acquire the remaining shares, as it already owns 65.7% of Zeekr. The privatization could help protect Zeekr in the competitive EV market and avoid geopolitical complications.

The broader context of this development is the escalating trade war between the United States and China, which has seen increasing tariffs and regulatory hurdles. By taking Zeekr private, Geely aims to shield the company from these external pressures while focusing on its EV market strategy. Zeekr's collaboration with Waymo on autonomous vehicles in the U.S. adds another layer of complexity, though neither company has detailed how the privatization might impact this partnership. Waymo's plans to integrate its self-driving system into Zeekr vehicles at its new Arizona facility suggest ongoing collaboration. This move by Geely underscores the strategic shifts Chinese companies might adopt amid changing international trade policies.

Trump Administration Waymo Autonomous Vehicles Us China Trade War Zeekr Ev Market New York Stock Exchange Geely Auto

Story submitted by Fairstory

RATING

6.8

Fair Story

Consider it well-founded

The news story provides a largely accurate and timely account of Geely's intent to take Zeekr private, supported by credible sources such as company filings. The article effectively outlines the strategic motivations behind the decision and the broader geopolitical context, offering a clear and structured narrative. However, it could benefit from greater transparency in sourcing and a more balanced representation of perspectives, particularly regarding the potential downsides for minority shareholders and the impact on U.S. investors. While the story is relevant and engaging for readers interested in business and international trade, expanding the discussion to include broader economic or political implications could enhance its public interest value. Overall, the article is informative and well-written but could be strengthened by including more diverse viewpoints and explicit source attribution.

Accuracy

The news story presents several factual claims that align well with the available data. The primary claim regarding Geely's intent to take Zeekr private is supported by filings and multiple sources. The offer details, including the price per ADS and ordinary share, are accurately reported and corroborated by external sources. The story correctly values the company at $6.5 billion, consistent with the offer details. However, the mention of Zeekr's vehicle deliveries and the collaboration with Waymo lacks specific source attribution, though these claims are generally consistent with Zeekr's known activities. Overall, the story is largely accurate but could benefit from more explicit sourcing for some claims.

Balance

The article provides a balanced view of the situation, explaining Geely's motivations for taking Zeekr private and the broader geopolitical context. However, it focuses primarily on Geely's perspective and the strategic benefits for the company, such as avoiding geopolitical issues and consolidating ownership. The article does not explore potential downsides or alternative viewpoints, such as the implications for Zeekr's minority shareholders or the impact on U.S. investors. Including perspectives from analysts or stakeholders with differing views could enhance the balance.

Clarity

The article is well-structured and clearly presents the key facts and context. The language is straightforward and accessible, making the information easy to understand. The story logically progresses from the announcement of Geely's intent to take Zeekr private to the implications of this decision. However, some sections could benefit from additional detail or explanation, particularly regarding the potential impact on Zeekr's partnerships and operations.

Source quality

The story references filings from Zeekr and official announcements, which are credible sources for the information presented. However, it lacks direct attribution to specific documents or statements, which would strengthen the reliability of the claims. The article does not cite independent analysts or experts, which could provide additional context and credibility. The reliance on company filings is appropriate but limits the breadth of perspectives included in the reporting.

Transparency

The article provides a clear overview of the situation but lacks transparency regarding the sources of some specific claims, such as Zeekr's vehicle deliveries and the collaboration with Waymo. The absence of explicit citations or links to the filings or announcements mentioned reduces the transparency of the reporting. Additionally, there is no disclosure of potential conflicts of interest or the methodology used to gather the information, which could enhance the transparency of the piece.