Ford stock falls after warning on supply chain shortages
Ford is still getting battered by product shortages as supply chain issues continue to undermine the auto industry.
By the numbers: Ford's stock fell 12.3% Tuesday after the company said late Monday that it expects to have 40,000–45,000 cars nearly finished but lacking crucial parts at the end of the third quarter.
- In pre-pandemic times, automakers typically did not have to park unfinished cars in large quantities while waiting for parts.
Details: The shortages are affecting "largely high-margin trucks and SUVs," Ford said.
- And inflation pulsing through the supply chain is expected to cost the company $1 billion more than previous expected, it added.
The bottom line: "While we have been hearing ... about the marginal improvement of the supply chain, Ford's announcement shows that we are not yet out of the woods," Morgan Stanley analyst Adam Jonas wrote in a research note.