“Congratulations, you just taxed yourselves!” Ford (F) sticker shock sends stock tumbling

Ford (F) stock slipped Wednesday after reports confirmed the automaker is raising sticker prices on several popular models assembled in Mexico.

A company memo sent to Ford dealerships revealed price hikes of up to $2,000 on the Mustang Mach-E, Maverick pickup, and Bronco Sport SUV, all manufactured south of the border.

“It turns out the consumers pay for the tariffs. Not Mexico. Not China. Not the American companies,” analyst Spencer Hakimian wrote in a viral post. “Congratulations. You just taxed yourselves!”

The memo marks the first explicit admission from a major automaker that it’s passing on the cost of President Trump’s 25% import tariff.

Some manufacturers are already pulling back deliveries to U.S. dealerships, leading to widespread inventory shortages.

NBC News reported that the stock in Pine Belt Subaru in Lakewood, New Jersey, dropped by more than 80% in recent months.

“We need inventory. We need to fill our shelves with vehicles,” said Dan Ariel, director of Pine Belt Auto Group. “If the factory is not giving us vehicles right now, it’s definitely a concern.”

The supply crunch isn’t limited to American automakers. Subaru, Mazda, and Hyundai have all begun rerouting exports away from American factories following retaliatory tariffs from Canada.

As Investors Observer reported, many Canadian dealerships are now sourcing vehicles from Asia and Europe instead.

Ford stock under pressure

After lukewarm earnings and warnings that tariffs could cost the company $1.5 billion this year alone, Ford stock is under pressure.

CEO Jim Farley has cautioned that price increases may exceed those outlined in the dealership memo. In an interview with CNBC, Farley said tariffs could push vehicle prices up by $5,000 or more by summer.

Shares of Ford (F) fell as much as 3.1% on Wednesday before closing down 1.5% at $10. The stock is down 7% over the past six months and 16% over the past year.