Our Stock of the Week is ZEEKR Intelligent Technology Holding Ltd. (ZK). ZK is a BEV (Battery Electric Vehicle) company operating in China. ZK is a subsidiary of China-based Greely, which is the tenth-largest auto manufacturer in the world and the second largest in China.
Zeekr was founded in 2021. Its name is a combination of the words ‘Generation Z’ and ‘geek.’ It manufactures premium vehicles and has a strategic partnership with Waymo for self-driving cars and robotaxis.
On March 11, ZK announced new luxury models that compete with Mercedes-Benz and BMW. The Zeekr 9x Grand SUV is priced at about $137,840. Other variants at lower price points were also introduced.
The big long-term potential is for entry into the US market, and even with tariffs, it has the capacity to be very price competitive. That will not happen soon, but the company is enjoying very strong revenue growth in its home market and is expanding internationally.
The main appeal of the stock at this time is its strong relative strength. China stocks, in general, have been outperforming and ZK enjoys a relative strength ranking of 95.
Technically, the stock is in very good shape as it flirts with a breakout over the $32 level. It may need time for further consolidation. I’ll be watching for increased volume and a move through that level before being more aggressive. As always, we will aggressively trade the stock into volatility.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in ZK. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
