Ford Motor Co. shares closed down more than 12% Friday after the company withdrew its full-year forecast, citing "uncertainty" over its tentative deal with the United Auto Workers and broader losses in its electric vehicle division.
The automaker reported a higher-than-expected $1.33 billion loss in earnings before interest and taxes (EBIT) in its EV unit in its third-quarter earnings report Thursday, up from the $1.08 billion hit the segment took in the second quarter.
That means Ford took an operating loss of nearly $37,000 on every EV it sold last quarter. The company has forecast a full-year loss for the Ford Model e unit of $4.5 billion.
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Ford posted revenue of $44 billion for the third quarter, an 11% boost, and reported a $1.2 billion profit. The company lost $827 million the same quarter a year ago.
Ford warned of continued pressure on electric vehicles as customers balk at paying a premium for EVs over other models.
CEO Jim Farley said in the company earnings call that, for customers, there is an "affordability issue" when its comes to EVs.
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The company said it will slash production of its Mustang Mach-E and plans to scale back around $12 billion in investments in its EV division, including a delay in a second battery plant in Kentucky.
Reuters contributed to this report.
