Shares in Volvo Cars crashed the most on record in Stockholm, with Bloomberg data going back to late 2021, after it reported fourth-quarter earnings that missed analyst expectations.
Shares plunged as much as 25% after fourth-quarter earnings missed expectations, marking the stock’s worst intraday drop since its 2021 listing.
Profitability was hit by higher US tariffs, weaker EV subsidies, currency headwinds, and fierce price competition in China, pushing the Ebit margin down to just 2%.
Analysts are mixed to bearish, while CEO Håkan Samuelsson and EU officials warn that tough market conditions threaten Europe’s broader auto industry.
A toxic blend of higher US tariffs, cuts to EV subsidies, a stronger Swedish krona versus a weaker dollar, and an intensifying price war in China all squeezed fourth-quarter profitability, the Swedish-origin automaker detailed in its earnings release.
It reported an Ebit margin of just 2% and an operating income that came in well below Bloomberg Consensus estimates
Full story Volvo Slump Fuels Fears for Europe’s Auto Industry | OilPrice.com
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