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Ford Authority

Ford Stock Takes Big Hit After Warning About Inflation, Shortages

As Ford Authority reported earlier today, FoMoCo currently has around 40,000-45,000 unfinished vehicles sitting at its plants awaiting supply constrained parts, which is part of the reason why the automaker’s new vehicle inventory has plummeted ahead of an expected ramp up in Q4. At the same time, The Blue Oval also revealed that its inflation-related supplier costs rose significantly during Q3, to the tune of $1 billion more than originally expected. Those revelations have had a major impact not only on the automaker and its customers, but also on Ford stock, which took a large hit on Wall Street today, according to Reuters.

Ford stock sunk 11 percent on Tuesday following the company’s announcement, hitting $13.33 as it was on track for its sharpest single-day decline since the onset of the COVID-19 pandemic in March 2020. This follows Ford’s announcement in July that it expects its commodity costs to rise by $4 billion this year, as well as preliminary Q3 results that show automakers will likely take longer to recover from the chip shortage than previously expected.

Through the entirety of 2022, Ford stock is down 36 percent following a strong run in 2021 that culminated with a share price of $21.27 in January of 2022. Since then, the automaker’s stock has been on a bit of a roller coaster ride with each passing month, landing at $15.10 on the first of this month after hitting a low of $11.10 at the beginning of July.

Aside from the chip shortage and other supply chain constraints, Ford is also dealing with major inflation issues, which have increased its costs exponentially. Meanwhile, the Federal Reserve is once again expected to raise interest rates in an effort to calm inflation – as much as 75 basis points this month, in fact – though investors remain concerned that these efforts could hamper economic growth as well.

We’ll have more on Ford stock soon, so be sure to subscribe to Ford Authority for ongoing Ford stock news and around-the-clock Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. Mike

    Get ready for more vehicle price increases, especially on EVs. Someone has to cough up $1 billion, and guess who it will be?

    Reply
    1. NCEcoBoost

      Nope. The opposite. If the Feds raise rates later today, the market will tank further and we will be in a recession. NOTHING will sell without BIG incentives.

      Reply
  2. NCEcoBoost

    After the Federal Reserve announces its decision on rates later today, the entire market could crash or suffer a HUGE decline. This will signal a recession and party’s over.

    Reply
  3. Michael

    After the FED rate increase today, Fords’ stock is going to take another hit. Glad I do not have any.

    Reply
  4. JBbooky

    The incentives will be paid for by we taxpayers under the guise of “good for america”.

    Reply
  5. Bob

    The FED seems to not care about growth. All it cars about is making everyone poorer. The layoffs are coming and then its the great recession all over again. More Democrat failure (they are the majority and in control of everything, how’s that inflation reduction act doing ) leading us into economic h e double hockey sticks.

    Reply
  6. John Coviello

    And all of this economic mess is being caused by this administration spending more and more money that we DO NOT have with NO END in sight (2.5 more years to go). This will lead the way to a very deep and long recession that will eventually bring all the supply lines to a halt. Once that happens we will see a world wide food crisis of epic proportions due to NO fertilizers and at that point, no one will care about building vehicles anymore as unemployment goes through the roof. The ONLY way to stop this is by stopping ALL of the government needless spending and reopening ALL of the economy and fuel supplies. We all better wake up, because if this is NOT STOPPED SOON, most of us will be lucky to survive long term.

    Reply
    1. Njia

      If you think it’s just the Dems spending their way into oblivion, you’ve got another thing coming. BOTH parties got us into this mess. 80% of all U.S. debt has accumulated over the past 20 years.

      Reply
  7. JimmyC

    2.5 more years.OMG. Don’t blame me, I didn’t vote Patata al forno.

    Reply
    1. Davido49

      Truth.

      Reply
  8. hot toddy

    the same day the huge battery plant in Hardin, Ky. was in the news

    Reply
  9. GeorgeB

    This country would be thriving under President Trump. The problems would have been fixed and the country booming again.

    Reply
    1. Davido49

      Truth!

      Reply

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