Volvo Cars' stock has hit a new low. In fact, the car brand has never been worth less after the market's reaction to the annual report.
The 2024 financial results were a disappointment for Volvo. At least when you look at the share price. Disappointing sales led to the share immediately falling to its lowest level ever.
The accounts show, among other things, that Volvo has written off 1.7 billion kroner (1.1 billion Danish kroner, ed.) on the failed Novo Energy project, from which the brand has net bought out the bankrupt Northvolt.
Volvo's managing director Jim Rowan also warns that even tougher times may lie ahead.
"But 2025 will be a challenging year for the entire automotive industry, including Volvo Cars," says CEO Jim Rowan.
The CEO's announcement immediately caused Volvo Cars' value to plummet to a record low. So far, the share has fallen by almost 10 percent.
This means that 3.3 billion Danish kroner worth of assets have disappeared. This will be bad news for all car brands. But for Volvo it is extra bad.
The brand's stock has been in an almost continuous decline for the past five years. This means that smaller shareholders in particular have had to see their wealth shrink, often to almost nothing.
It also doesn't help that Volvo has a record profit to lean on from 2024. Investors also seem to not care that there are five new cars on the way from the Chinese-owned brand.
– We stand by our ambitions for 2026, but the assessment for 2025 is extremely limited, if any, growth across the industry, largely driven by macroeconomics and price competition.
– We are not saying anything more specific than that. We are launching several new cars in 2025 and into 2026, which means we are going strong into 2026. Which is also driven by an improved macroeconomic situation, Volvo's CFO Johan Ekdahl tells Nyhetsbyrån Direkt .
