Ford's earnings disappoint investors, causing share prices to drop 12%. Concerns about rising costs and the company's electric vehicle plans add to the uncertainty.

• The automaker's earnings missed estimates, causing Ford stock to trade sharply down.
• If ratified, the new contract will increase Ford's already-high costs, despite the company being the first of the Detroit automakers to reach a tentative deal with the UAW.
• As demand isn't what it was anticipated, Ford is postponing $12 billion in investments for EV production.

On Friday, the company's shares plummeted after it announced that its earnings fell short of expectations and the demand for its electric vehicles was lower than anticipated.

The stock closed down more than 12% on Friday.

Wall Street was not pleased with Ford's third-quarter results, which were lower than expected. Ford's revenue and profit both fell short of analysts' estimates, and executives blamed the shortfalls on lost production due to the UAW strike at three of Ford's key U.S. factories, including a significant truck factory in Kentucky.

Wall Street estimates were surpassed by both GM's revenue and profit in the third quarter, resulting in a stark contrast to rival's report on Tuesday.

On Wednesday night, Ford became the first of the three Detroit automakers to reach a tentative agreement with the UAW. The surprising concession it won will help its fourth-quarter numbers: Striking workers will return to their jobs before the new deal is officially ratified.

The new contract of Ford will be costly, with the UAW deal adding $850 to $900 in expenses per vehicle assembled in the US, putting more pressure on CEO Jim Farley's efforts to reduce costs and enhance quality.

Ford announced that it will delay approximately $12 billion in previously planned spending on EV manufacturing capacity due to North American customers no longer being willing to pay a premium for EV vehicles compared to internal-combustion or hybrid alternatives.

Executives assured investors that Ford is not reducing or postponing its plans to create advanced EVs, but concerns about the company's competition with Tesla and other new EV companies were heightened.