- Since going public in 2018, Aston Martin’s value has plummeted by 10x.
- Two weeks ago, it sought emergency funds for the 8th time since its IPO.
- Some question how long Lawrence Stroll will remain committed to Aston.
When Aston Martin went public in 2018 and then landed a significant investment from Canadian billionaire Lawrence Stroll in 2020, the British company looked poised to thrive in a way it never had before. Eight years on from the IPO, its value has cratered and it continues to lose money, raising serious questions about how long it can carry on like this.
At the time of its public listing, Aston Martin was valued at approximately £4.3 billion ($5.8 billion), but its value has now dropped to around £430 million ($584 million). Just two weeks ago, Aston Martin sought emergency funds for the eighth time since going public, ultimately receiving £50 million ($67.9 million) cash from a consortium of investors led by Stroll.
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Although Aston Martin does produce some very exciting cars, including the all-new Valhalla, its pre-tax losses jumped 25 percent last year to £364 million ($494 million). Stroll has persistently said he’s committed to Aston Martin, but according to a report from The Telegraph, some are wondering whether Chinese giant Geely may look to swoop in and save it.
China To The Rescue?
The Stroll-led Yew Tree consortium is Aston Martin’s single largest shareholder with a 31 percent stake. Geely is the third largest shareholder with a peak of around 17 percent, just behind the Saudi Investment Fund’s stake. The company is already the majority shareholder of fellow British firm Lotus, and in 2013, also saved the London Taxi Company from collapse, reviving it as the London Electric Vehicle Company (LEVC).
Geely founder and chairman Li Shufu is known to have an affinity for British cars, and while Volvo has thrived under Geely ownership, the same cannot be said about Lotus or LEVC. Lotus recently announced it was sacking over 500 people at its Hethel headquarters, and it lost £195 million ($264 million) in the first half of 2025. If Geely were to try to save Aston Martin, it may be forced to start building its vehicles in China.
“China has the lowest costs on the planet, and the classic business model of China is to go where the money is,” one Aston Martin supplier told The Telegraph. “The fear is they would move it all out there. We may not like it, but in a way it’s the smart move.”
However, investors appear wary of Aston Martin. Insiders claim Geely has reduced its stake to roughly 14 percent, while noting that Mercedes’ stake has been reduced from a high of around 20 percent to less than 8 percent.
The former boss of Aston Martin, Andy Palmer, firmly believes the company should welcome Chinese partners with open arms.
“They are probably 10 years ahead of us on battery technology, and they’re at least five years ahead in terms of software, and they learned that by collaborating with European and Japanese businesses,” he said. “You have to do the same in the opposite direction: get into joint ventures and co-investment.”
