The future of motion may just be electric. The global shift to EVs is here to stay, driven by environmental regulations, increasing concerns about climate change and air pollution - and a push to reduce reliance on imported oil.

Major improvements and lower costs in lithium-ion battery tech have pretty much killed "range anxiety." As per the International Energy Agency (IEA), autonomous intergovernmental organization, over 20% of new cars sold globally are electric, with sales in China jumping almost 40% in 2024.

So, why did China race ahead? China's secret sauce was a coordinated government push: generous subsidies for everyone, a massive charging network, and perks like easy license plates in busy cities. They also built an end-to-end domestic supply chain, helping companies churn out affordable EVs at a huge rate. The result is crystal clear for everyone to see. Today, China's BYD and Geely dominate the global EV market.

Race to the top

Geely Automobile Holdings is flying. The company’s total sales volume in Q3 25 was driven by growth in NEV (443k units sold), up 96% y/y. Sales volume for ICE vehicles crawled at 3% y/y, totaling 318k units. The real superstar was their Geely Galaxy range, with sales skyrocketing by a massive 170% to 327k units.

Geely secured the number two position in the NEV sales volume across all brands in China. This hot streak pushed their total market share to a personal best of above 10% (+2.4% y/y). Their NEV market share within China reached 8.4% (+2% y/y).

Taking off

Thanks to booming NEV sales, Geely's stock price is zipping right along, having cruised 10.7% in just the last year. Plus, the future looks even greener: analysts predict that the dividend yield will likely peak at 3.5% over the next three years, which is way better than the modest 2% they saw in FY 24.

Investors have something to be chummy about. Thirty-two analysts covering the stock have set an average target price of CNY 23.95. This means that the stock could potentially jump another 54% from current levels.

Bumpers ahead

As you’d expect, it isn’t all rosy when you consider Geely’s potential risks. The automobile giant faces several key risks, ranging from intense competition in the global electric vehicle market to the general macroeconomic environment.

The competitive Chinese EV market is ripe for intense price wars with manufacturers vying for market share. Geopolitical trade tensions, such as tariffs, threaten international expansion and revenue stability. Navigating tricky regulatory hurdles could slow down investment profit margins and, ultimately, shareholders’ wallets.