Volvo’s Class A share, Volvo Car AB, has reached its lowest value since the company was first listed on the stock exchange just over three years ago.
The brand's stock has been steadily declining throughout 2024, dropping nearly 27% on the Stockholm exchange, where it is traded.
The most recent downward trend began last Thursday when Volvo revealed more details about its decision not to fully phase out gasoline-powered cars by 2030.
According to car magazine Boosted, the announcement came during a market day presentation, shaking investor confidence in the carmaker’s electric vehicle strategy.
By the start of this week, the stock’s value had dropped further, reaching just over 24 Swedish kronor per share (equivalent to $2.3).
As of Tuesday, it had fallen below that mark.
While still faring better than its sister brand Polestar, which is teetering on the edge of delisting from the stock market, Volvo’s decline has raised concerns.
In response to these challenges, Volvo has introduced several cost-cutting measures to improve its situation.
The company plans to save billions by reducing spending on batteries, electric motors, and adopting gigacasting technology for bodywork production. Volvo is also considering outsourcing seat production to a subcontractor, a move likely influenced by the recent bankruptcy of IAC Group Sweden, a key supplier that owed billions when it collapsed in June.
