Why Zeekr’s Smart EV Stock Accelerated This Week

One of the lesser-known electric vehicle (EV) manufacturers on the scene, Zeekr Smart Technology (ZK 7.06%)it may not be a bedroom stock for much longer. On the back of quarterly results that showed strong growth, the Chinese company’s US-listed shares have moved quickly in an encouraging direction in recent days. It was up 15% year-to-date through Friday morning, according to data compiled by S&P Global Market Intelligence.

Triple digit revenue improvement

For the second quarter, Zeekr managed to double its vehicle shipments year over year, an impressive feat in this industry on its own. In total, those deliveries totaled 54,811 for the period.

So, not surprisingly, revenues have also seen a significant improvement. That engine rose 58 percent to just over 20 billion yuan ($2.8 billion). Although the fast-moving electric vehicle company posted a non-GAAP (adjusted) net loss, it was considerably narrower than the year-ago period. It reached just under 865 million yuan ($121 million), which compared favorably with the deficit of nearly 1.4 billion yuan ($196 million) in the second quarter of 2023. The latter shook at 9.51 yuan ($1.33) for each American depositary receipt (ADR) of the company.

Zeekr is not a company that is closely followed by analysts in this country, so consensus professional estimates were not available.

A summer with new products

The second quarter was notable not only for those energetic leaps both financially and operationally, but also for its series of new product launches. Zeekr’s entry-level Zeekr 001 was updated in August, and the previous month it brought out the Zeekr 009 minivan and the Zeekr 7X SUV.