Ford Stock Plummets as Supply Chain Woes Cost Company $1 Billion

The Ford Motor Company’s stock plummeted Tuesday after previously announcing supply chain and inflation problems will cost the company $1 billion in the third quarter.

The company’s announcement raises questions about whether industry wide supply chain issues still persist.

Ford’s stock (F: NYSE) on Tuesday opened at $14.11 but dropped to $13.38 an hour later. The Dearborn automaker’s stock closed the day at $13.09.

Supply chain woes have resulted in Ford placing 40,000 to 45,000 high-margin and high-demand trucks and SUVs to be left in inventory at the end of the third quarter due to a supply shortage of proper parts to complete and sell the vehicles to dealers.

Ford also indicated in the earlier Monday announcement that rampant inflation has made it expensive to purchase certain parts.

The company expects the vehicles to be ready to sell to dealers in the fourth quarter.

With the vehicles not ready to sell to the market, Ford adjusted their third-quarter earnings…

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