Ford’s profit guidance disappoints investors

Ford Motor announced its adjusted profit for the year would fall at the low end of its guidance, disappointing investors after rivals General Motors and Tesla reported strong earnings.

The automaker’s struggles include deep losses in its electric vehicle (EV) sector and increased warranty costs. 

In the third quarter, net income dropped 25% to $900 million, influenced by a $1 billion charge related to a canceled EV investment.

CFO John Lawler attributes the unexpectedly high warranty expenses as the primary reason for the low expectations for full-year profit.

As a result, Ford shares fell 5% in aftermarket trading, contributing to a 7% decline this year.