Ford stock dropped over 12% today, as they made an early announcement concerning Q3. It looks like they have incurred over $1 Billion of unexpected expenses, and likely will not be hitting their financial goals for the year moving forward. This could be due to supply chain issues or inflation, but most other auto manufacturers are saying that those pressures have been easing up as of late.
I think that we need to take a look at BYD for answers. BYD is the Chinese auto manufacturer who also happens to make the batteries for Ford’s current lineup of EV’s. According to Ford, the cost of these batteries have been going up astronomically for a few months now. This timing also coincides with when Warren Buffet (BYD’s largest shareholder) publicly announced that he was thinking about pulling his position from the company. It sounds like BYD might just be trying to cash in while they can, leaving Ford in a terrible position until they can find a replacement.
@s3magazine Ford had a terrible day on Wallstreet with the stock dropping over 12% as they have incurred over $1 Billion in unexpected bills. Does this have anything to do with their overseas battery manufacturer, BYD? #automotivenews #ford #wallstreet #stocks #stockmarket #fordmache #fordlightning byd #warrenbuffett
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