Volvo's European stocks plummeted by 11%, hitting a historic low, after previously experiencing a discounted sale of shares by Geely Auto.

GEELY AUTO is selling approximately 100 million shares of Volvo Cars. GEELY AUTO stated that this sale accounts for 3.4% of Volvo Cars' issued share capital and 4.1% of GEELY AUTO's stake in Volvo. Prior to this sale, GEELY AUTO held a series of equity interests in European automotive businesses, including an 82% stake in Volvo. After this sale, GEELY AUTO will still hold a 78.7% stake in Volvo. According to media reports, GEELY AUTO's shares are being sold at a significant discount, with a price of approximately 37 Swedish Krona per share, resulting in a total sale amount of around 350 million US dollars. Regarding the reason for the sale, GEELY AUTO explained that it aligns with the company's long-term strategy. This move can increase Volvo's liquidity and provide more opportunities for institutional and retail investors to create sustainable long-term value. In a statement released on Friday, GEELY AUTO CEO Li Donghui said, "As a major shareholder, we remain committed to supporting Volvo Cars' transformation into a full electric vehicle manufacturer. We look forward to continuing this ongoing success story." After the news of GEELY AUTO's large-scale sale was announced, Volvo Cars' stock price plummeted by 14% at one point, reaching a historic low of 35.25 Swedish Krona, close to the selling price of GEELY AUTO's transaction. It closed down 11% at 36.29 Swedish Krona. So far this year, Volvo's stock price has fallen by over 23%. Last month, Volvo's financial report showed an adjusted operating profit of 19.11 billion Swedish Krona in the third quarter, a year-on-year increase of 61%, surpassing market expectations of 16.27 billion Swedish Krona. On November 12th, Volvo's first pure electric MPV, the EM 90, made its global debut in China with a price of 818,000 yuan. This vehicle is based on the SEA platform and is positioned as a pure electric mid-to-large-sized MPV with a maximum range of 738 kilometers. Volvo President and CEO Håkan Samuelsson stated that the EM 90 is of great importance to Volvo as it brings Volvo's historical legacy in safety and industry-leading safety technology into the new market of pure electric MPVs. Yuan Xiaolin, President and CEO of Volvo Cars Asia Pacific, stated to Wall Street News that the launch of the EM 90 allows Volvo to redefine the previously vacant MPV segment, and with the improvement of Volvo's product lineup, Volvo's prosperous years are coming.