ZEEKR Intelligent Technology Holding Limited (NYSE: ZK) saw its stock plummet 5.42% in pre-market trading on Thursday following the release of its first quarter 2025 financial results. Despite showing year-over-year improvements in some areas, the company continues to face challenges in achieving profitability.

The electric vehicle manufacturer reported a net loss of RMB763 million (US$105 million) for Q1 2025, which represents a significant 60.2% decrease from the same period last year. However, this figure still marks a 21.3% increase in losses compared to the previous quarter. Total revenues grew modestly by 1.1% year-over-year to RMB22,019 million (US$3,034 million), while vehicle sales increased by 16.1% to RMB19,096 million (US$2,631 million) compared to Q1 2024.

ZEEKR's vehicle margin showed improvement, rising to 16.5% from 13.1% in the same quarter last year. The company delivered a total of 114,011 vehicles in Q1 2025, representing a 21.1% year-over-year increase. However, investors appear to be focusing on the persistent losses and the sequential decline in revenues, which fell 37.8% from the previous quarter. The mixed results and ongoing profitability concerns likely contributed to the sharp pre-market decline in ZEEKR's stock price.