Shares of Ford Motor Co tumbled more than 12% on Tuesday, its biggest one-day drop in more than a decade after the automaker said inflation-related costs would be $1 billion higher than expected this quarter and parts shortages led to deliveries. The stock closed at $13.09, its biggest drop since January 2011.

Shares of rival General Motors fell 5.6% after Ford’s preliminary third-quarter results were released late Monday. Ford said in July it expected to increase the cost of goods by $4 billion this year. The warning from the greater Detroit manufacturer comes less than a week after delivery company FedEx withdrew its financial forecast due to slowing global demand. Ford’s inflation problems and FedEx’s weak demand underscore the constraints the Fed finds itself facing ahead of Wednesday’s Fed policy meeting.

The Fed is widely expected to raise rates by 75 basis points in response to decades of high inflation. Its aggressive monetary policy campaign has hit US stocks in recent weeks, with investors worried that the Fed’s measures could weigh on the economy. Ford also estimates that 40,000 to 45,000 vehicles will be missing parts in inventory.

Ford is scheduled to report third-quarter results on October 26, confirming an adjusted 2022 EBIT forecast of $11.5 billion to $12.5 billion.

Deutsche Bank’s Rosner said it was unclear whether chip and component supplies would return to normal by the end of the year. Ford shares are down 37% in 2022, well ahead of the S&P 500’s 19% decline.