Geely Automobile Holdings Ltd: A Tumultuous Ride Amidst Allegations and Ambitions

In a dramatic turn of events, Geely Automobile Holdings Ltd, a titan in the automobile industry, finds itself at the center of a storm that could potentially reshape its future. The Hong Kong-based company, known for its expansive portfolio of passenger vehicles and its ambitious electric vehicle brand Zeekr, is now under scrutiny following allegations of inflating sales figures to meet aggressive targets.

Investor Alert: Securities Fraud Investigation

On August 16, 2025, Pomerantz LLP announced an investigation into Geely, focusing on claims of securities fraud and other unlawful business practices. This investigation was sparked by a Reuters article revealing that Zeekr, Geely’s premium electric vehicle brand, allegedly inflated sales by arranging for cars to be insured before sale, exploiting Chinese industry car registration practices to prematurely book sales. This revelation has sent shockwaves through the investor community, prompting calls for accountability and transparency.

Market Reaction: A Mixed Bag

Despite the swirling allegations, Geely’s financial performance tells a story of resilience and ambition. On August 19, 2025, the company announced an upward revision of its sales target to 3 million vehicles for 2025, a testament to its confidence in overcoming current challenges. This ambitious goal comes on the heels of a reported high second-quarter revenue growth, underscoring Geely’s determination to maintain its growth trajectory.

However, the market’s response has been mixed. As of August 17, 2025, Geely’s close price stood at 19.81 HKD, with a 52-week high of 20.85 HKD and a low of 7.57 HKD. The company’s market cap is a robust 177.65 billion HKD, yet the shadow of the investigation looms large, potentially impacting investor confidence.

ADR Performance: A Glimmer of Hope?

In the ADR market, Geely’s stock (GELYY) showed a premium of 3.63% over its Hong Kong counterpart, suggesting a degree of investor optimism or perhaps a disconnect between the markets. This premium, amidst the backdrop of allegations, could indicate a belief in Geely’s long-term value or a speculative bet on the company’s ability to navigate through the current storm.

The Road Ahead: Uncertainty and Opportunity

As Geely Automobile Holdings Ltd steers through these turbulent times, the road ahead is fraught with uncertainty. The outcome of the Pomerantz LLP investigation could have significant implications for the company’s reputation, financial health, and strategic direction. Yet, amidst the turmoil, Geely’s ambitious sales target and recent financial performance signal a company that is not only resilient but also forward-looking.

Investors and industry observers alike will be watching closely as Geely navigates these challenges. Will the company emerge stronger, having addressed the allegations and reaffirmed its commitment to transparency and ethical business practices? Or will the storm prove too much, leading to a reassessment of Geely’s position in the global automotive landscape?

Only time will tell, but one thing is certain: the journey ahead for Geely Automobile Holdings Ltd promises to be anything but dull.