Volvo Cars shares tumbled as much as 14% on Friday morning after its parent company Zhejiang Geely Holding Group began a sale of around 100 million shares of the Swedish carmaker.
At 9 a.m. London time, shares of Volvo were down by 10.31% after trimming some losses. Shares had fallen by as much as 14% earlier in the day and hit a record low, according to Reuters data.
Geely said in a statement earlier on Friday that it would release further shares of Volvo, which was in line with its long-term strategy.
It said the move was designed to increase liquidity of Volvo and “offer more opportunities to generate sustainable long-term value for institutional and retail investors.”
Geely will still hold 78.7% of Volvo shares following the sale, the statement said. Geely previously owned around 82% of Volvo, putting the sold shares at over 3%.
Geely did not immediately responded to a CNBC request for comment. A spokesperson for Volvo Cars directed CNBC to Geely when asked for comment.