By Martin Mou

Geely Automobile Holdings Ltd.'s shares soared in early trade on Friday after the Chinese auto giant launched the first model from its new electric-vehicle brand, Zeekr.

Geely's Hong Kong-listed shares rose as much as 10% and were last 8.4% higher at HK$22.05, a sharp jump for the auto giant, whose stock price had slumped in recent weeks from a record high in late January.

The company said the first Zeekr model--001--is positioned for the premium EV segment and the brand would also offer a fast-charging network and battery-rental services.

The Zeekr 001 competes directly with Tesla Inc.'s Model 3, Citi said.

Citi expects Geely's new EV model to record monthly sales of between 4,000 to 5,000 units initially before reaching up to 12,000 units a month in the second quarter of next year. Even sales of 5,000 units a month would be significant for Geely, which sold around 5,500 electric cars last month.

Geely unveiled its Zeekr brand last month, a move widely seen as playing catch up as the industry transitions toward electric vehicles. Its various electric brands have had poor sales in China, while Tesla Inc., BYD Co. and others have taken a commanding lead in the segment.

Delivery of Zeekr 001 will begin in October for China and in 2022 for overseas markets, Geely said.

Write to Martin Mou at martin.mou@wsj.com

(END) Dow Jones Newswires

04-16-21 0028ET