Shares for Ford Motor Co. dropped by around 11 percent on Tuesday after the company revealed that inflation woes unexpectedly added about $1 billion to their operating costs this quarter.
A day after the news, the company's stock price took a hit. The automaker said it is also dealing with persistent parts shortages and other issues that have delayed vehicle deliveries, Reuters reported. Ford's results also sent the price of shares for its rival company, General Motors, tumbling as well, down 4.4%. Analysts believe it will take more time for automakers to recover from the period of extreme chip shortages.
Deutsche Bank analyst Emmanuel Rosner said,"It appears that across the industry, chip and components shortages may be improving at a slower pace than anticipated." Ford said in July that the company expected commodity costs to jump by $4 billion for the fiscal year.