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Zeekr is making frantic efforts to gain a good market share in the Chinese ecosystem.
Chinese Electric Vehicle (EV) startup Zeekr has reached a valuation that surpasses that of its top rival Xpeng Inc – ADR (NYSE: XPEV) following a recent funding round. The funding round saw top Chinese battery producer Contemporary Amperex Technology Co Ltd (SHE: 300750).
As reported by CNBC, Zeekr is now valued at $13 billion following the $750 million raise CATL and a host of other investors including three state-affiliated funds, and Amnon Shashua – co-founder and CEO of self-driving tech company Mobileye. By comparison, Xpeng’s valuation is currently pegged at $8.01 billion according to data from Refinitiv Eikon accessed earlier today.
The Chinese electric vehicle industry is growing at a frantic pace as the global economy looks towards embracing more environmentally friendly vehicles. Zeekr was founded by Geely back in 2021 and in its short existence, the firm has launched its first few auto brands that are now selling in the market.
According to the company, one of its flagship rides, the Zeekr 001 coupe brand, started selling in October of last year. The company boasts that it has delivered a total of 80,000 vehicles to date. Additionally, its higher-end Zeekr 009 brand started selling earlier this year with the delivery figures not yet published.
Zeekr is making frantic efforts to gain a good market share in the Chinese ecosystem and with Geely’s backing, it is doing just that. The company said the recent funding acquired will be used to bootstrap its tech development initiatives as well as power its expansionary drives into the European market.
The company has not yet defined its strategies for the expansionary drive but is set to give stiff competition to other major emerging players both at home and abroad.
Zeekr amidst Other EV Brands
Zeekr is notably gaining good traction relatively more than its age in the electric vehicle industry. Besides its now higher valuation compared to Xpeng, the company is also closing in on other key players. These include Nio Inc ADR (NYSE: NIO), Li Auto Inc (NASDAQ: LI), and BYD Ord Shs A (SHE: 002594) whose valuations are $17.22 billion, $25.80 billion, and $108.2 billion yuan respectively.
This valuation is despite Zeekr still being a privately held company, however, there are reports of a possible listing in the United States.
By price of its products, the average starting price of the Zeekr 001 is pegged between 300,000 yuan ($43,915) and 386,000 yuan. This is an even more lofty price compared to Tesla Inc (NASDAQ: TSLA) Model Y which starts at 261,900 yuan.
The Geely backing has helped Zeekr in its bid to become a formidable and self-sustaining unit. Geely is known for making a number of spot-on bets in the auto industry. The company acquired the Volvo brand from Ford Motors Co (NYSE: F) back in 2010. Today, Geely stands as the fourth largest auto manufacturer in China by sales in 2022. This data was drawn from the China Passenger Car Association.