STOCKHOLM, Sweden: Volvo Cars shares fell a record 24 percent on October 23 after the automaker reported a much larger-than-expected third-quarter operating loss, doubled its cash burn, and announced another 2,500 job cuts as it intensifies efforts to turn around the business.

Shares fell to another record low as the Swedish carmaker, majority-owned by China's Geely Holding, struggles with uneven electric-vehicle demand, mounting tariff pressures, and difficult conditions in China.

"The third quarter of 2026 was very disappointing and reflects a year that has become far more challenging than originally anticipated. Our ongoing turnaround plan therefore needs a decisive reinforcement," CEO Hakan Samuelsson said.

Volvo reported an operating loss of 3.7 billion Swedish crowns (US$373 million), compared with a profit of 5.8 billion crowns a year earlier. Citi analysts said the consensus forecast was a loss of 724 million crowns.

The company also burned through about 8.9 billion crowns during the quarter, twice the amount recorded in the same period last year.

"If that continues for another two quarters, they might need more capital," Handelsbanken analyst Hampus Engellau said, although he noted that Volvo still had more than 30 billion crowns in cash and should benefit from the expected ramp-up of its new EX60 electric SUV.

Volvo plans to cut around 2,000 jobs in Sweden and another 500 globally. The measures will affect about 6 percent of its workforce through consultant contract terminations, natural attrition and targeted exit packages.

The cuts add to 3,000 job reductions previously announced.

Volvo said it also needs to cut another five billion crowns in indirect spending and variable costs by the end of next year.

The company's EX60, an electric version of its best-selling XC60 and a central part of its turnaround, has suffered significant delays because of battery assembly problems. So far, it has built only around 5,000 of the 40,000 vehicles planned for this year.

Volvo scrapped its full-year sales-volume and cash-flow guidance earlier this month as it shifted its focus in China from market share to margins rather than competing in an intensifying price war with domestic rivals. Third-quarter revenue fell nearly 50 percent.

Its gross margin declined to 14.7 percent from 20.4 percent a year earlier.

Former Skoda chief Klaus Zellmer is due to succeed Samuelsson next year.

"Zellmer... has an even harder job on his hands now than when he was announced one month ago," Bernstein analysts wrote, adding that conditions were unlikely to improve soon.

Volvo plans to design six of the 13 models it intends to launch by the end of the decade for China, and Samuelsson said he does not expect the company's performance there to improve until those vehicles arrive.

"We should have maybe realized earlier that we need to be more regional in China. Maybe we should have also realized earlier that tariffs would come, so we need to localize more in the U.S.," Samuelsson said.

"So that's a weakness right now which we are addressing."