Struggling Chinese EV Maker Aiways Stages Comeback Via $400M US SPAC Deal After Zeekr's Stellar New York Debut
Chinese EV maker Aiways will go public via a merger with U.S. Special Purpose Acquisition Company Hudson Acquisition Corp (NASDAQ:HUDA) in a deal that values the EV maker at about $400 million. The SPAC announcement comes days after Chinese auto company Geely‘s Zeekr (NYSE:ZK) brand started trading on the New York Stock Exchange.
What Happened: Aiways was founded in 2017 by Chinese entrepreneurs Samuel Fu and Gary Gu. The company’s financial situation collapsed last year, forcing it to halt production at its Shangrao plant with an annual capacity of 300,000 vehicles. The company also has R&D and design centers in Shanghai (China), a battery factory in Changshu (China), and the European Sales Centre in Munich.
It has two EV models, named U5 and U6, and the company intends to focus on just Europe in the short term, given the intense competition within the Chinese market, Reuters reported.
"The new entity will be strategically positioned to capitalize on our vision and resources in the European EV market," said Alexander Carsten Klose, Managing Director of Aiways Europe. The deal is expected to close by the year, Hudson said in a statement.
Why It Matters: Geely’s global electric mobility technology brand ZEEKR Intelligent Technology Holding Limited started trading on the New York Stock Exchange on Friday. The shares closed nearly 35% higher than its initial public offering price on its first day of trading, giving the company a fully diluted valuation of $6.8 billion.
Zeekr's debut on the New York Stock Exchange comes as other EV makers on U.S. exchanges have been facing a stock slump. Tesla stock has slumped 30% year-to-date while Rivian stock has slumped nearly 52%. New York-listed shares of Chinese EV maker Nio are down 36.7% year-to-date and those of XPeng are down 43%. Nasdaq-listed shares of Li Auto are also down 28% since the start of the year.
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