Why Ford Stock Tumbled 26.5% in September
Ford (NYSE: F) is at the very early stages of reinventing its business. Next year, the company will operate three different segments under its Ford+ umbrella. As it gears up to separate its legacy internal combustion engine brands, new fully electric vehicles (EVs), and its commercial and government customer sales, the automaker is struggling with rising costs and other supply chain issues. Investors don't appear confident that the company will turn things around anytime soon, pushing its stock down 26.5% last month, according to data provided by S&P Global Market Intelligence.
The main catalyst for the stock's September decline came after Ford released an update on Sept. 19, warning investors that it would absorb $1 billion in unanticipated supply chain costs in the third quarter. The company also said the supply chain disruptions would cause it to finish the quarter with between 40,000 and 45,000 vehicles in inventory waiting for some needed parts before they can be completed.
Image source: Ford.
Source Fool.com