Shares of Ford Motor Co.'s stock plummeted 12% Tuesday as investors reacted to the automaker's warning that the effects of inflationary pressures and supply constraints would show up in third-quarter earnings.
The company's stock closed at $13.09 per share Tuesday. The loss represented the largest one-day hit Ford's stock has taken in more than a decade, Bloomberg reported.
The stock was down on a pre-earnings update Ford released Monday after market's close. The company warned that "inflation-related supplier costs" would end up running about $1 billion more than originally expected in the July-September period. Ford expects adjusted earnings before interest and taxes for the quarter to be in the range of $1.4 billion and $1.7 billion — down from $3.7 billion in the second quarter and $3 billion in the third quarter of 2021, and well below Wall Street analysts' consensus expectation.
