At the stock exchange listing on October 29, 2021, the price was 53 kronor, but it quickly rose to around 90 kronor. Then the decline has been steep. Today, a share in Volvo Cars costs around 20 kronor.
The parallel to the really big popular share Telia, which got over a million shareholders at the listing in 2000, is clear. The price drop is roughly the same, although over a longer period.
Volvo Cars has not quite reached the level of a popular share like Telia, Ericsson, or Investor. At the latest year-end, there were 168,000 unique owners of the car share, making it the 14th most owned share in terms of the number of owners, according to statistics from Euroclear. Two-thirds of them are men. During the heyday, around the turn of the year 2021/2022, the total number was around 190,000.
Hard to catch the knife
So despite the price drop, many owners are staying, new ones hoping it will turn.
When you buy a share that goes down and down, you usually say that you're trying to catch a falling knife. You should be careful with that, says Philip Scholtzé, savings economist at online broker Avanza.
But Volvo Cars as a company has actually not done badly in recent years. In 2023 and 2024, the Chinese-controlled car company had 400 billion kronor in annual revenue and made profits before tax of around 20 billion kronor. But investments are consuming a lot of money, and the pure cash flow is therefore weaker.
"Hated by the market"
Last week's drop came in the wake of CEO Jim Rowan expressing cautious forecasts for 2025.
"Despite Volvo Cars doing relatively well in a challenging environment, the share is basically hated by the market. The entire automotive sector is in a challenging situation, and the threat of tariffs from the US did not make the situation easier", says Frida Bratt, savings economist at Nordnet, in a written comment on the stock market drop.
Investor, 633,000 owners
Telia, 434,000
Ericsson, 385,000
The figures refer to December 31, 2024
Source: Euroclear
