Geely’s Zeekr Slashes Electric SUV Price In Latest Threat To Tesla

Automotive giant Geely, the parent company of Volvo, Polestar, Lotus and other well-known brands, has become the latest to take aim at Tesla’s electric vehicle (EV) dominance in China with a 4 percent price cut in its new Zeekr 7X SUV that began shipping to customers in mainland China on Friday.

The 7X, under Geely’s premium electric Zeekr brand, is one of several electric SUVs that have directly targeted Tesla’s Model Y in recent months, with others including Nio’s Onvo L60 SUV and Xpeng’s G6.

Tesla’s Model Y, built at its factory in Shanghai, is the best-selling EV in China.

Geely’s Zeekr priced the 7X at 229,900 yuan ($32,608, £24,490), a reduction of 4 percent.

Price war

The vehicle’s presale price was already 4 percent below that of the Model Y when it launched on 30 August.

“After consulting some customers, we decided to price the model at an even more attractive price,” said Zeekr chief executive An Conghui in a statement.

Hangzhou-based Zeekr said it has received preorders for more than 58,000 vehicles since the launch three weeks ago.

Tesla has been engaging in a bitter price war in China’s highly competitive EV market over the past few months, which has reduced its profit margins in the world’s biggest EV market.

Amidst the competition, deliveries from Tesla’s Shanghai factory fell 17 percent in the first seven months of the year to 298,384 vehicles, falling 6 percent year-on-year in July, according to figures from the China Passenger Car Association (CPCA).

The 7X sells in a standard edition that can travel 605km on a single charge or an extended version with up to 780km of range per charge, compared to 554km of range per charge for the Model Y.

Fast charging

The 7X’s standard edition is also the first of Zeekr’s vehicles to feature its new lithium-ion-phosphate (LFP) battery technology, which features 800-volt ultra-fast charging and can offer nearly 400km of driving range after 10.5 minutes of charging.

The batteries offer the world’s fastest charging times, Zeekr said.

The 7X also accelerates rapidly, from 0 to 100 km/h in 3.8 seconds, according to the comapany.

Following the China launch Zeekr is expected to bring the ZX to international markets including Europe, which has introduced steep tariffs on Chinese-made EVs, within a year.