The share prices of Nokian Tyres saw declines of more than 13 percent on Monday afternoon compared to Friday's closing price.
Last Thursday, the tyre firm told analysts it planned to continue its production operations in Russia, despite many of its competitors announcing their intentions to suspend business in Russia in response to its invasion of Ukraine, which began on 24 February.
Finnish daily newspaper Helsingin Sanomat was the first to report about the company's plans which were outlined in a call with analysts.
Nokian Tyres has estimated that demand will outstrip supply following the departure of competitors, according to Joonas Korkiakoski, a market analyst from the financial analysis firm Inderes.
If that is the case, Nokian's market share in Russia could increase, Korkiakoski explained in a report.
"The company itself [Nokian] did not say that they would benefit from the situation, but rather it was an observation made by analysts, purely about market economy mechanisms," Korkiakoski told Yle.
Other leading tyre firms, including Bridgestone, Continental and Michelin have said they were temporarily suspending business operations in Russia.
Inderes issued a report on Friday estimating that only a small proportion of Nokian Tyre dealers would end up refusing to carry the company's Russian-made tyres.
However, the analytics firms also noted that if the war is drawn out, it could negatively shift customers' views about the matter — a possible development that could adversely affect Nokian's reputation.
The options available to the company — whether or not to continue operating in Russia — are difficult, as the firm manufactured more than 80 percent of its passenger vehicle tyres in the country last year.
If Nokian were to shed its operations in Russia, the firm would likely lose around half of its net sales, amounting to 750-850 million euros, and two-thirds of its operating profits of around 200 million euros, according to Korkiakoski.
The analyst said that Nokian Tyres plans to increase production operations in Finland and the United States. The company is also planning to set up a new production facility, possibly in Eastern Europe, but not in Russia, according to Korkiakoski.
Yle was unable to reach a representative from Nokian Tyres for comment.
Customers asking where tyres were made
However, Nokian's decision to stay in Russia has started to cause some damage to the firm's reputation, at least according to operators of some local businesses in the Pirkanmaa region that spoke to Yle about the matter.
Marko Myllymäki, the managing director of tyre shop Pirkkalan Rengaskauppa, said that customers have been asking about where their tyres were manufactured.
"I think everyone has that in mind," Myllymäki said, adding that the company has traditionally sold a lot of Nokian tyres because the manufacturer's headquarters are located in nearby Nokia.
Meanwhile, the head of car dealer Metroauto Hatanpää in Tampere, Markku Talvitie, explained that the majority of the new cars it sells have been outfitted with Nokian's tyres. However, so far, the knock-on effects of Russia's invasion have been minor.
"There have been individual inquiries about where a car's tyres were made," he explained, adding that the firm can offer customers tyres made by other manufacturers if necessary.
Edited at 16:26 to add comments from tyre and auto sales firms in the Pirkanmaa region.