economy

February 5, 2026

Sweden’s Volvo Cars fell over 22% in its worst trading day ever. Here’s why

The Sweden-based automaker posted a substantial drop in fourth-quarter profit, citing tariffs, currency effects and weak demand.

Sweden’s Volvo Cars fell over 22% in its worst trading day ever. Here’s why

TL;DR

  • Volvo Cars shares fell over 22.5%, marking its worst trading day.
  • Fourth-quarter operating profit dropped 68% year-on-year.
  • CEO cited challenging markets, U.S. tariffs, currency effects, and reduced EV incentives.
  • Internal cost reductions and positive cash flow were highlighted as successes.
  • Analysts anticipate significant downgrades to 2026 earnings forecasts.
  • The company expects 2026 to remain challenging due to pricing pressure and tariffs.
  • Deliveries of the electric EX60 SUV are set to increase in the second half of the year.

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