January 6, 2026
Finance

Geely Considers U.S. Market Entry Within Three Years Amid Tesla's Sales Decline

Chinese automaker's Zeekr and Lynk & Co. brands may debut in the U.S. as Tesla faces falling global sales and Chinese EV exports surge

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Summary

Chinese automaker Geely Automobile Holdings is evaluating plans to enter the U.S. automotive market within the next two to three years, potentially introducing its Zeekr and Lynk & Co. brands. This potential expansion comes amid a backdrop of declining global sales for Tesla and a significant increase in Chinese electric vehicle exports, marking a shifting landscape in the EV industry.

Key Points

Geely is actively exploring a U.S. market debut for its Zeekr and Lynk & Co. brands within the next 24-36 months.
The company holds a major stake in Volvo, which owns Polestar and operates a manufacturing facility in South Carolina, evidencing existing U.S. production ties.
Tesla's global sales have declined recently, including a 12% drop in European sales and a 16% year-over-year decrease in Q4 deliveries.
Chinese EV exports surged significantly in late 2025, with over 199,800 vehicles shipped abroad in December and Chinese brands gaining notable market share in Europe.

Geely Automobile Holdings Ltd., a prominent automotive manufacturer based in China, is reportedly planning a potential launch into the U.S. vehicle market within the upcoming two to three years, according to statements made by Ash Sutcliffe, Geely's Head of Global Communications. Speaking at the Consumer Electronics Show (CES) 2026, Sutcliffe indicated that the company might make an announcement regarding this U.S. market move sometime in the next 24 to 36 months.

Geely is known for its portfolio of automotive brands, including Zeekr and Lynk & Co., which Sutcliffe specifically mentioned as candidates for introduction to American consumers. However, the company has yet to provide formal confirmation or further details regarding the timing or scale of this prospective market entry.

It is significant to note that Geely holds a substantial ownership stake in the Swedish automaker Volvo, which itself owns Polestar Automotive. Polestar maintains automobile production operations in South Carolina, highlighting established manufacturing ties within the U.S. Despite these connections, Chinese automakers have historically faced substantial barriers to entry in the American market primarily due to tariffs imposed on imported vehicles, posing challenges for their electric vehicles (EVs) to achieve competitive pricing and viability.

These developments unfold in the context of Tesla Inc. — the leading U.S. electric vehicle manufacturer — experiencing a downturn in global sales. Tesla's reported deliveries in the fourth quarter fell short of market expectations, with a total of 418,227 vehicles delivered globally, representing a 16% decline compared year-over-year. Market-specific data reveal that Tesla's sales in Europe decreased by 12% in November alone, illustrating a pronounced contraction in one of its key international regions.

Conversely, Chinese EV exports have demonstrated robust growth. According to December figures, Chinese automakers shipped more than 199,836 vehicles overseas, accounting for an increase exceeding 87% in exports from China. European imports of Chinese-made electric vehicles rose by 63%, contributing to Chinese brands capturing a record 12.8% market share in the European EV segment.

Meanwhile, BYD Co. Ltd., another major Chinese electric vehicle producer, has surpassed Tesla to become the leading EV manufacturer globally by volume of vehicles delivered. Although BYD experienced a dip in sales during December, its overseas shipments remained strong, underscoring continued international expansion and competitiveness.

This shift in dynamics represents a significant development in the global electric vehicle market. Geely’s potential entry into the U.S. market, supported by its existing relationships and brand portfolio, could add new competitive pressures and alter the landscape amid Tesla’s current sales challenges and the increasing influence of Chinese EV makers internationally.

Risks
  • Geely faces challenges entering the U.S. market due to import tariffs affecting Chinese-made electric vehicles, which could limit competitiveness or delay entry.
  • Tesla's sales decline introduces uncertainty about market dynamics and competitive pressures within the U.S. and global EV sectors.
  • Lack of official confirmation from Geely about the U.S. entry timeline or specific strategies creates uncertainties about the feasibility and execution of market plans.
Disclosure
Education only / not financial advice
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