What Happened: Schiff took to social media platform X to share his concerns about the recent performance of Ford. He pointed to the company’s underwhelming second-quarter profits and bleak guidance as indicators of a larger economic struggle. Schiff attributed this to the financial strain on Americans, citing rising living costs and high interest rates on auto loans.

He wrote, “Ford shares are down 12% in after-hours trading, following lower than expected Q2 profits and weak guidance. This shouldn’t be a surprise. Americans are broke. The cost of living is way up. They can’t afford to buy new cars, especially with higher interest rates on auto loans.”

This comes in the wake of Ford’s second-quarter earnings report, which saw a 6% year-over-year increase in revenue, surpassing the Street’s consensus estimate. Despite this, the company’s earnings per share fell short, leading to a 37% decrease in revenue from its Ford Model e segment.

See Also: Jeff Bezos-Era ‘Downstream Impact’ Losing Its Mojo? Amazon CEO Andy Jassy Is Reportedly Rethinking Alexa Devices Business Model Resulting In Billions Worth Of Losses

Why It Matters: The disappointing earnings report from Ford comes amid broader economic concerns. The company reported quarterly earnings per share of 47 cents, missing the Street consensus estimate of 68 cents.

President Joe Biden emphasized the positive developments in a White House press release, noting that the latest report demonstrates significant progress in combating inflation.

Price Action: Ford Motor’s stock closed at $13.67 on Wednesday, down 1.16% for the day. In after-hours trading, the stock fell further 11.56%. Despite this drop, Ford’s stock has risen 12.42%, year to date, according to the data from Benzinga Pro.

Read Next:

• Mohamed El-Erian On Biden’s Withdrawal From Presidential Race: ‘There Is Genuine Uncertainty On How Markets Will – And Should- React To The News’

Image Via Shutterstock

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote