(CTN News) – Ford Motor Co. shares closed down more than 12% Friday after the company withdrew its full-year projection, citing “uncertainty” over a tentative contract with the United Auto Workers as well as broader losses in its electric vehicle division.
As part of its third-quarter earnings report released on Thursday, the automaker reported a higher-than-expected $1.33 billion loss in earnings before interest and taxes (EBIT) in its EV unit, compared with the $1.08 billion loss the segment reported in the second quarter.
Ford made a loss of nearly $37,000 on every electric vehicle it sold last quarter as a result of its operating losses, which amounted to nearly $37,000 on every electric vehicle it sold.
The company has reported that for the full year of 2018, the Ford Model e unit is expected to post a loss of $4.5 billion, according to the company’s estimates.
For the third quarter of the year, Ford reported revenues of $44 billion, an increase of 11% over the previous quarter, and a profit of $1.2 billion, representing an increase of 11% over the previous quarter.
Based on the results for the same quarter a year ago, the company had a net loss of $827 million for the quarter.
In the past few years, there has been warning that high electric vehicle prices will continue to put pressure on the industry, as customers are unwilling to pay more for these vehicles in the future.
According to Jim Farley, the CEO of Tesla, a few days ago, there is an “affordability issue” when it comes to electric vehicles, especially when it comes to the customers who want to purchase them.
There is a delay in the construction of a second battery plant in Kentucky as a result of Ford’s decision to reduce production of its Mustang Mach-E and scale back about $12 billion in investments in its EV division, including a reduction in production of its Mustang Mach-E.