[JACK AYLMER]

AMERICANS ARE INVESTING HUNDREDS OF MILLIONS OF DOLLARS IN A CHINESE ELECTRIC VEHICLE BRAND.

SPENDING MONEY ON AN AUTOMAKER WHOSE CARS CAN’T EVEN BE BOUGHT IN THE U.S.

WELL, NOT YET ANYWAYS.

ZEEKR IS THE CHINA-BASED EV COMPANY AT THE CENTER OF ALL THIS.

THEY JUST DEBUTED ON THE NEW YORK STOCK EXCHANGE, OPENING 24 PERCENT HIGHER THAN THEIR INITIAL PUBLIC OFFERING PRICE-

AS THE COMPANY EARNED A VALUATION OF NEARLY 7 BILLION DOLLARS.

21 MILLION OF THE COMPANY’S SHARES WENT TO U.S. BUYERS, TOTALING ALMOST 450 MILLION DOLLARS.

LIKE ALL OTHER CHINESE AUTOMOTIVE BRANDS, YOU CAN’T GET ONE HERE.

BUT AMERICAN INVESTORS ARE STILL BETTING ON THE AFFORDABILITY OF CHINESE EVS BEING A HIT WHEN THEY DO FINALLY REACH THE STATES.

-WITH A U.S. LAUNCH CURRENTLY PLANNED FOR 20-25.

THE AVERAGE 40,000 DOLLAR PRICE TAG OF ONE OF ZEEKR’S NEWEST MODELS IS OVER 14 THOUSAND DOLLARS LESS THAN WHAT MOST AMERICAN EV BUYERS PAY.

WHILE CHEAPER ELECTRIC VEHICLE OPTIONS are GREAT FOR U.S. CONSUMERS, THE FEDERAL GOVERNMENT MAY NOT BE AS THRILLED.

THE BIDEN ADMINISTRATION HAS BEEN WORKING TO KEEP CHINESE EVS OUT OF OUR COUNTRY.

WORRIED THAT THEIR LESS EXPENSIVE OFFERINGS WILL UNDERCUT DOMESTIC BRANDS AND ULTIMATELY LEAD TO THE U.S. EV PUSH LINING BEIJING’S POCKETS.

IT’S PART OF WHY THE GOVERNMENT IS NOW REPORTEDLY EXPECTED TO ANNOUNCE HIGHER TARIFFS ON CHINESE EVS BY AS EARLY AS NEXT WEEK. 

SO FAR, A 27 AND A HALF PERCENT DUTY HAS BEEN SUFFICIENT TO DETER THESE CHINA-BASED COMPANIES FROM SENDING THEIR CARS OVER.

BUT WITH ZEEKR PREPARING TO MAKE THE MOVE STATESIDE, WHETHER OR NOT INCREASED FARES WILL SLOW THOSE PLANS DOWN REMAINS TO BE SEEN.

JACK AYLMER – STRAIGHT ARROW NEWS.