On the surface, Zeekr appears to be a poster child for China’s electric vehicle ambitions. It’s a global premium technology brand, backed by automotive giant Geely, with a portfolio of award-winning, high-performance vehicles making inroads from Europe to Southeast Asia. Its delivery numbers show staggering year-over-year growth,
with its flagship model setting benchmarks in the world’s most competitive market. But beneath this glossy veneer of success, the company is caught in a pincer movement, fighting a desperate two-front war for its very soul.
Zeekr is simultaneously battling for its financial valuation against its own parent company and for its corporate reputation against damning allegations of sales fraud. This is not just a story of a company hitting a rough patch; it is a profound conflict that pits a high-stakes investor revolt against a ruthless corporate consolidation strategy,
all set against the backdrop of a regulatory crackdown on systemic industry malpractice. Zeekr’s predicament raises a critical question: is this a promising brand being kneecapped by cynical corporate maneuvering and the toxic pressures of the Chinese market, or is this a necessary, albeit brutal, consolidation required for survival in the EV industry’s endgame?
Part 1: The Numbers Game: A Scandal of “Zero-Mileage” Cars
The first front in Zeekr’s war is a battle over integrity. Recent investigations by Reuters and prominent Chinese state media outlets have uncovered allegations that Zeekr, along with other domestic brands, systematically inflated its sales figures to meet aggressive performance targets in a hyper-competitive market.
The Method Explained
The scheme, described as the sale of “zero-mileage used cars,” involved a deceptive but simple accounting trick. Vehicles were pre-insured and registered to corporate entities—often dealership subsidiaries—allowing Zeekr to officially “book” a sale and report it in industry data long before a genuine customer ever took delivery. This practice was a direct response to the immense pressure to perform. As one analyst with the China Automobile Dealers Association noted, these methods were used to “embellish their financial reports and achieve their performance goals,” a practice he bluntly called “not advisable”.
Case Study: The Xiamen Anomaly
The scale of this practice was starkly illustrated by a statistical anomaly in the southern city of Xiamen in December 2024. That month, Zeekr reported a massive surge in sales, totaling 2,737 vehicles—a figure more than 14 times its typical monthly average in the city. The numbers, however, concealed a troubling reality. Data from the China Automobile Dealers Association revealed that 2,508 of those sales were to corporate entities, not individual buyers. The deception ran even deeper: data from Xiamen’s own vehicle administration bureau showed that only 271 cars were actually registered for license plates that month, the crucial final step that a real buyer takes upon receiving their vehicle.
The key player in this scheme was Zeekr’s main dealer in the city, the state-owned Xiamen C&D Automobile. This entity allegedly insured and registered the vehicles under its own subsidiaries, creating phantom sales on Zeekr’s behalf that could be booked before the end of the year. These pre-registered cars were then sold off in subsequent months, sometimes at a discount, to unsuspecting buyers in other cities like Beijing and Chongqing.
The Human Cost
This corporate malfeasance had a direct impact on consumers. Buyers in cities such as Guangzhou and Chongqing reported discovering that their brand-new cars came with insurance policies that had already been active for weeks. When they complained that they felt “deceived” and demanded refunds, they were refused. This added a crucial, human dimension to the scandal, transforming it from a story about manipulated spreadsheets to one about broken consumer trust.
The State Pushes Back
The response from Beijing was swift and severe. In a rare and significant public condemnation, the China Securities Journal ran a front-page story “naming and shaming” Zeekr for the practice. Even more pointedly, the
People’s Daily, the official mouthpiece of the ruling Communist Party, published a scathing editorial condemning the sale of zero-mileage used cars and the harm it inflicts on the industry.
This public rebuke signals a critical shift in the government’s stance. For years, Beijing has aggressively promoted the growth of its EV sector through subsidies and favorable policies. This crackdown suggests that era is ending. The state’s focus is pivoting from growth at all costs to industry health, regulation, and integrity. The government is no longer willing to tolerate the “irrational” competition that has defined the market. This shift is being backed by action, with the Ministry of Industry and Information Technology reportedly planning to ban the resale of cars within six months of their initial registration, a move designed to close the very loophole Zeekr and others exploited.
The scandal is a clear symptom of what is known in China as “involution” (内卷), a state of intense internal competition where players become locked in a draining, zero-sum game that breeds irrational behavior. The pressure from automakers on dealers to meet unrealistic targets created a toxic environment where such practices became widespread. The sentiment was perfectly captured by one dealer involved in a similar scheme with another brand, who said the company’s message was simply, “Just do it, everyone else is doing it”.
Part 2: The Buyout Battle: A Power Play and an Investor Revolt
While battling for its reputation in public, Zeekr is simultaneously fighting a civil war in the boardroom. A high-stakes power play initiated by its parent company, Geely, has triggered a fierce rebellion from some of its most powerful early investors.
The Shock Offer
Just one year after Zeekr launched a high-profile IPO on the New York Stock Exchange, Geely made a stunning move. In early May 2025, it announced a $2.2 billion offer to take Zeekr private, acquiring the roughly 34% of shares it did not already own. The timing was audacious, suggesting a strategy to delist and fully absorb the brand almost as soon as it had been spun out to public investors.
The Investor Rebellion
The offer was met with immediate and furious opposition. A powerful consortium of pre-IPO investors formally protested, sending a letter to Geely arguing that the deal “stinks” and grossly undervalues the company. This was not a minor protest from small shareholders; the group included some of the most influential players in the technology and automotive world: battery manufacturing titan
CATL, U.S. tech investor Intel Capital, and prominent private equity firm Boyu Capital. Other disgruntled investors included online entertainment company Bilibili and Cathay Fortune Group.
The Valuation Controversy: A Rollercoaster Ride
The investors’ anger is rooted in a dramatic collapse in Zeekr’s valuation. The numbers tell a story of immense value destruction:
- 2023 Private Valuation: In a fundraising round, Zeekr was valued at a robust $13 billion.
- May 2024 IPO Valuation: When it went public in the U.S., its valuation was slashed to just $5.5 billion.
- Geely’s Buyout Offer: The $2.2 billion offer for the remaining stake implies a total company valuation of only $6.5 billion.
Investors argue this valuation is a steep discount compared to rivals like Nio, Li Auto, and XPeng, which command higher market capitalizations despite facing similar industry headwinds. This undervaluation is reflected in Zeekr’s price-to-sales (P/S) ratio of just 0.63, a fraction of Li Auto’s 1.5 and XPeng’s ratio of over 2.
The Power Dynamics
The central tension in this conflict lies in the shareholder structure. Geely already owns approximately 66% of Zeekr, giving it more than enough voting power to push the privatization through regardless of what minority shareholders want. So why protest? The move is a “calculated relationship play”. These investors are leveraging their strategic importance to Geely in a high-stakes game of corporate chess. CATL is not merely an investor; it is the world’s largest battery maker and a critical supplier to the entire Geely empire. Intel is a key technology partner. By protesting publicly, they are forcing Geely to weigh a quick financial win against the risk of damaging indispensable, long-term strategic alliances. Alienating these partners over this deal could have supply chain and technology repercussions far exceeding the value of the buyout itself.
Ironically, the low valuation that investors are protesting is the very problem Geely claims it is trying to solve. The market applies a “conglomerate discount” to Zeekr because it is not perceived as a truly independent entity, with its fate tied to Geely’s broader strategy. This privatization attempt is proof of that lack of independence. Geely is thus caught in a paradox: to unlock what it sees as Zeekr’s true long-term value, it believes it must fully integrate the company. However, the act of forcing that integration via a lowball offer crystallizes the very undervaluation that has enraged its most important partners.
Part 3: “Return to One Geely”: The Grand Strategy Behind the Turmoil
Geely’s controversial moves are not random acts of chaos. They are calculated steps in a deliberate, if ruthless, grand strategy to reshape its sprawling automotive empire for an era of brutal competition.
The “Taizhou Declaration”
The guiding philosophy for this consolidation is the “Taizhou Declaration,” a strategic vision laid out by Geely Holding Group Chairman Li Shufu. This declaration marked the start of the “Return to One Geely” strategy, a massive undertaking to integrate its numerous brands—including Geely Auto, Lynk & Co, and Zeekr—into a more unified and efficient global powerhouse. The official merger agreement between Geely Auto and Zeekr was signed on July 15, 2025, confirming that despite the investor pushback, the strategy is moving forward decisively. Upon completion, Zeekr will be delisted from the NYSE and become a wholly-owned subsidiary of Geely Automobile Holdings.
The Rationale
The logic behind this consolidation is a direct response to the market realities in China.
- Eliminate Redundancy: The primary goal is to stop wasteful, redundant investments across its brands and create powerful synergies in technology, R&D, supply chain management, and manufacturing.
- Achieve Economies of Scale: In a market now defined by vicious price wars, scale is paramount for survival. Full integration is designed to unlock significant cost savings and improve margins.
- Boost Competitiveness: By combining Zeekr’s strengths in the premium EV segment with Geely’s massive foundation in the mainstream market, the merged entity aims to become a “globally leading intelligent electric vehicle group”.
While the rhetoric is offensive, the strategy is fundamentally defensive. The extreme market pressures are forcing Chinese auto giants to turn inward and optimize for survival. Much like tech giant Alibaba reversed its plan to spin off its business units, Geely has concluded that a collection of semi-independent brands is less resilient than a single, unified behemoth. The push for “global leadership” is the ambition, but the immediate driver is ensuring survival at home.
This creates a stark contradiction between Zeekr’s global ambitions and its local scandals. At the very moment its domestic sales practices are being condemned by the state, the company’s press releases celebrate expansion into over 50 international markets, new partnerships in Indonesia and Malaysia, and sales success in Thailand. Geely is attempting to build a global premium brand on a foundation that is showing deep ethical cracks at home. This disconnect poses a significant risk to its credibility in international markets, where corporate governance and transparency are highly valued.
Part 4: From Boardroom to Showroom: The Cars at the Heart of the Conflict
Lost in the drama of boardroom battles and sales scandals are the products themselves—the advanced, critically acclaimed electric vehicles that are the source of Zeekr’s value and the reason for the fight over its future. The paradox is that while the company is in turmoil, its cars demonstrate precisely the kind of engineering and design prowess that makes it such a coveted asset.
Introducing the Key Models
- Zeekr 001: The brand’s flagship, a sleek shooting brake that established its identity as a premium performance player. The 001 recently surpassed 200,000 cumulative deliveries, a major milestone in China’s premium EV market, and has set Guinness World Records for the fastest EV drift and slalom.
- Zeekr 7X: A sophisticated family SUV designed with global markets in mind. Built on a state-of-the-art 800V architecture, it promises blistering performance and some of the fastest charging speeds in the industry.
These vehicles showcase the technology that underpins the brand’s value: full 800V electrical systems, ultra-fast charging that can add hundreds of kilometers of range in minutes, powerful dual-motor configurations, and advanced driver-assistance systems. The specifications below quantify why investors believe the brand is being undervalued.
| Vehicle Class | Executive Shooting Brake | Mid-size Crossover SUV | ||||
| Platform | SEA1 (400V/800V options) | PMA2+ (Full 800V System) | ||||
| Model Trims (EU) | Long Range RWD / Performance AWD / Privilege AWD | Core RWD / Privilege AWD | ||||
| Battery Capacity (Usable) | ~100 kWh (NMC) | ~75 kWh (LFP) / ~94 kWh (NMC) | ||||
| Drivetrain | Rear-Wheel Drive / All-Wheel Drive | Rear-Wheel Drive / All-Wheel Drive | ||||
| Max Power Output | 272 hp / 200 kW (RWD) 544 hp / 400 kW (AWD) | 416 hp / 310 kW (RWD) 630 hp / 470 kW (AWD) | ||||
| 0-100 km/h (0-62 mph) | 7.2 seconds (RWD) 3.8 seconds (AWD) | ~6.0 seconds (RWD) 3.8 seconds (AWD) | ||||
| Max Range (WLTP) | Up to 620 km (RWD) Up to 580 km (Privilege AWD) | Up to 480 km (Core RWD, 75kWh) Up to 543 km (Privilege AWD, 100kWh) | ||||
| DC Fast Charging (10-80%) | ~30 minutes (at 200 kW) | ~13 minutes (75kWh) / ~16 minutes (100kWh) (at 360 kW) | ||||
| AC Charging | 22 kW | 22 kW | ||||
| Dimensions (L x W x H) | 4955 x 1999 x 1560 mm | 4787 x 1930 x 1650 mm | ||||
| Wheelbase | 2999 mm | 2900 mm | ||||
| Cargo Volume (Trunk) | 539 L (expands to 2144 L) | 539 L (+ 42 L frunk) | ||||
| Key Tech Features | 15.4″ Center Screen, Optional Air Suspension, ZEEKR AD | 16″ 3.5K Mini-LED Screen, Active Air Suspension (Privilege), Haohan 2.0 ADAS | ||||
| Data Sources |
Conclusion: A Moment of Reckoning
Zeekr stands at a critical inflection point, squeezed between an investor revolt over its value and a regulatory storm over its integrity. These are not separate crises but deeply intertwined consequences of the crushing pressure cooker that is China’s EV market. The “Return to One Geely” strategy may be a logical, even essential, move for long-term survival, but its ruthless execution has triggered a profound crisis of confidence. Geely is attempting to fortify its house by knocking down internal walls, but in the process, it has angered the residents and shaken the very foundation of trust upon which its premium brand was built.
Zeekr’s story is a potent cautionary tale for the entire Chinese auto industry. The era of “growth at any cost” is drawing to a close, ushered out by a government that is now prioritizing market health over raw numbers. The transition to a more mature, regulated, and consolidated industry will be painful, and companies will increasingly be judged not just on their technology and sales charts, but on their governance and transparency.
The ink on the merger agreement is now dry, but the fallout from the sales scandal and the bruised relationships with key strategic partners will linger. Zeekr’s engineering prowess is undeniable, and its products are formidable competitors on the world stage. The ultimate question is whether that technological strength can overcome the damage done in the boardroom and the shadow now cast upon its brand. The answer will determine if Zeekr becomes a global leader or a case study of a company that won the technology race but lost the trust of its market.