Shares of U.S. automaker Ford Motor Co fell more than 10 percent on Thursday, after it warned the global semiconductor chip shortage could cut its second-quarter vehicle production in half, a dour outlook for rivals and key suppliers.
Analysts said the chip shortage is getting worse as Ford also reduced its full-year earnings before interest and taxes outlook even after handily beating Wall Street’s profit estimate for the first quarter, helped by pricing gains.
“Ford joins a growing chorus saying the semiconductor issue won’t be resolved until 2022,” RBC Capital Markets analyst Joseph Spak wrote in a note.
The chip shortage has forced U.S. automakers to cut production of less profitable vehicles, while allowing them to raise prices on their most profitable ones as demand surges, offsetting the production loss.
Shares of Ford’s larger rival General Motors Co also fell over 4% on Thursday.
Ford’s lower second-quarter production is likely to weigh on suppliers such as Visteon, BorgWarner, Tenneco, Lear Corp, Adient Plc, RBC’s Spak said.
Shares of the suppliers fell between 1% and 5% in morning trading.
Shares of Ford fell as much as 10.4% to $11.14, posting their biggest one-day loss in more than ten months. Ford’s stock is still up about 30% this year.