Zeekr (ZK) Plunges 18.31% Amid Safety Concerns, Delivery Growth

Zeekr (ZK) shares plummeted 5.61% over the past three days, marking a significant decline of 18.31% in the past three days. The stock price fell to its lowest level since September 2024 today, with an intraday decline of 8.82%.

One of the most concerning factors affecting Zeekr's stock price is the recent battery fire incident. A Zeekr electric vehicle's battery caught fire and exploded after a crash, resulting in severe burns to the passengers. This incident has raised serious safety concerns and could negatively impact the brand's reputation, potentially leading to a decline in consumer trust and demand.

Additionally, Zeekr experienced a 20.59% decrease in insurance registrations for the week ending April 6. This decline could indicate a drop in consumer interest or demand for Zeekr vehicles, further exacerbating the challenges faced by the company. The decrease in insurance registrations suggests that potential buyers may be hesitant to purchase Zeekr vehicles due to safety concerns or other factors, which could negatively impact the company's sales and stock price.

On the other hand, Zeekr delivered 15,422 vehicles, showing an 18.5% increase year-over-year and a 9.9% increase month-over-month. This growth in vehicle deliveries is a positive indicator of the company's performance and could support the stock price. The increase in deliveries suggests that Zeekr is successfully expanding its market share and gaining traction in the electric vehicle market, which could offset some of the negative impacts of the recent safety incident and decrease in insurance registrations.

Pictet Asset Management Holding SA decreased its position in Zeekr by 30.1%, which can reflect a lack of confidence among institutional investors. This change in institutional investment could negatively impact the stock price, as institutional investors often have a significant influence on market sentiment and stock performance. The decrease in institutional investment suggests that some investors may be concerned about Zeekr's future prospects, potentially leading to a decline in the stock price.