DETROIT – Ford Motor’s inventory suffered its worst day in additional than 11 years, after the automaker pre-released a part of its third-quarter earnings report and warned buyers of $1 billion in surprising provider prices.

Shares of Ford closed Tuesday at $13.09 apiece, down by 12.3%. The Detroit automaker misplaced roughly $7 billion off its market worth.

It was additionally the inventory’s worst day on a proportion foundation since Jan. 28, 2011, when the automaker’s fourth-quarter earnings disillusioned buyers and the inventory shed 13.4% to shut at $16.27 a share, in accordance with information compiled by FactSet.

Ford, after the markets closed Monday, stated provide issues have resulted in components shortages affecting roughly 40,000 to 45,000 autos, primarily high-margin vehicles and SUVs that have not been capable of attain sellers.

Regardless of the issues and further value, Ford affirmed its steerage for the yr however set expectations for third-quarter adjusted earnings earlier than curiosity and taxes to be within the vary of $1.4 billion to $1.7 billion. That might be considerably beneath the forecasts of some analysts, who have been projecting quarterly revenue nearer to $3 billion.

Ford cited current negotiations leading to inflation-related provider prices that can run about $1 billion larger than initially anticipated.

Whereas no main Wall Road analysts downgraded the inventory in gentle of the replace, a number of have been caught off guard by Ford’s announcement. Expectations have been that offer chain issues have been easing. What’s extra, Ford had lately been avoiding such issues higher than a few of its opponents.

Goldman Sachs analyst Mark Delaney stated his agency was “shocked by the 3Q pre-announcement given the progress that Ford had beforehand made on provide chain bottlenecks.”

BofA Securities analyst John Murphy echoed these emotions in a be aware to buyers Tuesday: “Finally, this information is considerably stunning as broader macro information counsel provide chains have gotten incrementally higher over the previous couple of months.”

A number of analysts questioned whether or not this was a Ford-specific downside, or a purple flag for added issues for the automotive business.

GM CEO Mary Barra on Tuesday informed CNBC that the corporate’s provide chain issues have been easing.

“We’re seeing an improved scenario,” Barra stated. “We preserve working, fixing points, in search of efficiencies as a traditional course, and we will proceed to do this.”

Barra stated GM is on observe to finish about 95,000 autos in its stock by the tip of this yr that have been manufactured with out sure elements as a result of provide chain issues. In July, GM warned buyers that offer chain points would materially have an effect on its second-quarter earnings, whereas equally sustaining its steerage for 2022.

Ford stated its unfinished autos are anticipated to be accomplished and despatched to sellers within the fourth quarter.

In response to the Tuesday decline, Ford spokesman T.R. Reid stated the corporate continues to ship on its Ford+ restructuring plan.

“Markets are environment friendly over time,” he stated. “We have got an ideal plan at Ford+ to create worth for patrons, and buyers and different stakeholders over time. It is our obligation to execute in opposition to it and create that chance.”

Ford’s inventory is down greater than 36% yr so far however nonetheless up about 2% within the final 12 months.

— CNBC’s Christopher Hayes and Michael Bloom contributed to this report.