Shares in Volvo Cars crashed the most on record in Stockholm, with Bloomberg data going back to late 2021, after it reported fourth-quarter earnings that missed analyst expectations.

A toxic blend of higher US tariffs, cuts to EV subsidies, a stronger Swedish krona versus a weaker dollar, and an intensifying price war in China all squeezed fourth-quarter profitability, the Swedish-origin automaker detailed in its earnings release.

It reported an Ebit margin of just 2% and an operating income that came in well below Bloomberg Consensus estimates.

Here's a snapshot of fourth quarter estimates (courtesy of Bloomberg):

• Revenue SEK94.38 billion, estimate SEK101.83 billion (Bloomberg Consensus)

• Operating income SEK1.89 billion, estimate SEK4.6 billion

• Ebit margin 2%, estimate 4.56%

• EPS SEK0.43, estimate SEK1.24

• Sales volume 195,700, estimate 196,850

• Europe retail sales volume 90,000 units, estimate 93,693 (2 estimates)

• China retail sales volume 44,200 units, estimate 42,956 (2 estimates)

• US retail sales volume 30,900 units, estimate 33,350 (2 estimates)

• Others retail sales volume 30,600 units, estimate 27,965 (2 estimates)

• BEV Vehicles sales volume 46,700 units

Volvo wrote in the earnings release that "results reflect a challenging external environment."

"We have a very tough market," CEO Hakan Samuelsson told Bloomberg Television earlier. He said the removal of EV incentives in the US and tough competition in China have all hampered sales.

The shares plunged as much as 25% in Stockholm, the steepest intraday drop on record since the stock started trading in late 2021.

Shares have been down and to the left since trading began in October 2021.

Wall Street analysts are mixed to bearish on Volvo. There are only 2 "buys," with 9 "holds," and 3 "sells."

EU industry chief Stephane Sejourne recently issued a warning, saying Europe's auto industry is "in mortal danger."

The obvious question is how Brussels elites managed to screw up so royally. Because once the auto industry collapses, so does the backbone of wartime manufacturing capacity.