Volvo shares tank 10% as Geely trims stake

November 17, 2023 06:34 AM PST | By Invezz

Volvo shares tank 10% as Geely trims stake — Image source: Invezz

Geely sells Volvo shares at a discount

On Friday, Geely sold 100 million shares of the car manufacturer at a significant discount. The sale totaled about $350 million.

The Chinese multinational automotive company still owns 78.7% of Volvo Car. According to Daniel Donghui Li – its Chief Executive:

We remain steadfast in our commitment to continue support of Volvo Cars on its transformation towards becoming a fully electric car maker, and look forward to continuing this global success story.

Watch here: https://www.youtube.com/embed/jj-eVqLnVZw?feature=oembed

Geely acquired the Swedish car company that has notable brands like Polestar and Smart under its banner in 2010. Volvo shares are now down over 35% versus their year-to-date high.

Why did Geely sell Volvo Car stock?

According to Zhejiang Geely Holding Group, selling shares of Volvo Car AB is in line with its broader strategy and will help the automaker with liquidity.

The Chinese owner is convinced that the move it announced today will “offer more opportunities to generate sustainable long-term value for institutional and retail investors.”

It plans on using proceeds from the share sale for business development.

NEWS: Volvo has officially unveiled the EM90, an all- electric minivan. The is Volvo's first ever minivan.

Highlights:
• Starting price: $114,000
• 268 hp, 0-62 mph in 8.3 seconds
• RWD
• 116-kWh battery pack
• 459 mile CLTC range
• Bidirectional charging
• Seats 6
•… pic.twitter.com/L8jnkbjgaG
— Sawyer Merritt (@SawyerMerritt) November 12, 2023

The news arrives less than a month after Volvo Car said its operating profit jumped a whopping 75% year-on-year to SEK 6.1 billion ($580 million) in the third quarter of 2023. Wall Street currently has a consensus “hold” rating on Volvo shares.

The post Volvo shares tank 10% as Geely trims stake appeared first on Invezz

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