Why is Geely Automobile stock rising today?
Geely said its wholly-owned subsidiary Geely SPV would acquire a 34% stake in Ford España, S.L. for €221 million, forming a joint venture at Ford’s Valencia, Spain plant. The agreement, disclosed on the evening of July 23, calls for operations to commence in the first half of 2027, pending regulatory approvals, with the first Geely-branded electric SUV — the EX5 model already sold across Europe — targeted to roll off the production line in 2028.
The strategic rationale behind the deal resonated strongly with investors. By securing a physical manufacturing presence inside the European Union, Geely effectively reduces its exposure to the import tariffs that have weighed on Chinese automakers exporting EVs to Europe. The joint venture, in which Ford retains a 66% majority stake, also aims to reach an annual production capacity of roughly 500,000 units at the Valencia facility, giving Geely significant scale from which to grow its European brand presence. The announcement also came just one day after U.S. legislators advanced measures to tighten restrictions on Chinese automakers, making European localization all the more critical.
Geely vastly outpaced broader Hong Kong stocks, with the Hang Seng down over 1%.
