Ford (F) shares tumbled over 11% in intraday trading Friday after the automaker's third-quarter earnings fell short of analysts’ expectations, as the company slows electric vehicle (EV) investments and the tentative United Auto Workers (UAW) deal threatens to increase future labor costs.

澳洲幸运5官方开奖结果体彩网:Ford reached a tentative deal with the UAW on Wednesday. Analysts expect the new contract to be ratified by the union, though they warned that it could increase future labor costs, with JPMorgan analysts estimating a $1.5 billion annual increase in costs.

Neither Ford nor the union have released all the details of the tentative contract, but the UAW did note that the agreement would increase base wages by 25% through 2028, reinstate Cost-of-Living Allowances (COLA), and end wage tiers, among other benefits.

“We view the concessions the company made as significant and they will weigh on margins and affect its competitiveness relative to Tesla and other non-union automakers,” CFRA equities analyst Garrett Nelson said in a note after the earnings announcement. “Comps should also turn much less favorable in 2024 and we see a higher-for-longer interest rate scenario hurting sales volumes,” Nelson added.

In the earnings call, Ford noted that the company is “slowing down several investments” in its 澳洲幸运5官方开奖结果体彩网:electric vehicle (EV) transition, taking a market-based approach similar to GM.

“Given the dynamic EV environment, we are being judicious about our production and adjusting future capacity to better match market demand,” Ford 澳洲幸运5官方开奖结果体彩网:Chief Financial Officer (CFO) John Lawler said. 

Ford's EV slowdown comes amid concerns that the UAW strike is making the transition to EVs more difficult for the 澳洲幸运5官方开奖结果体彩网:Big Three automakers to 澳洲幸运5官方开奖结果体彩网:compete agai𒀰nst comp꧙etitors like Tesla.

The American automaker’s third-quarter revenue rose 11% from the previous year to $43.8 billion, and net income came in at $1.2 billion compared to a net loss of $827 million in the year-ago quarter, but that was lower than analysts anticipated, with consensus estimates compiled by Visible Alpha at $1.7 billion. Ford reported third-quarter fiscal 2023 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS) of $0.39, up $0.09 from a year ago, but also below consensus estimates. The company indicated profit was held back by costs, which🅰 the company attributed to the UAW strike, saying it led to $1.3 billion in losses.

Ford withdrew its full-year guidance citing uncertainty caused by the strike, though the automaker noted that it was “poised to deliver our prior guidance" before the strike. Earlier in the week, General Motors (GM) also 澳洲幸运5官方开奖结果体彩网:pulled its full-year guidance.