Due to “uncertainty” surrounding the ratification of its agreement with the United Auto Workers (UAW) union, Ford Motor Company (F.N.) pulled its full-year results projection on Thursday. The firm also warned about ongoing pressure on electric cars, which caused business shares to drop more than 4% after hours.

A strike at several of Ford’s largest facilities ended on Wednesday when the union and the carmaker negotiated a tentative agreement that includes a 25% salary increase for 57,000 workers over 4 1/2 years.

Chief Financial Officer John Lawler of Ford stated at a conference on Thursday that the company anticipates an increase in labor costs per car of $850 to $900 due to the new deal.

In an investor letter on Thursday, CFRA research analyst Garrett Nelson stated that the firm has made important compromises. “They will weigh on margins and affect its competitiveness relative to Tesla and other non-union automakers.”

Following competitor General Motors’ (GM.N.) decision to delay opening a $4 billion electric truck facility in Michigan earlier this week, Ford has grown increasingly concerned about the slowing market for E.V.s.

Citing “tremendous downward pressure” on pricing, Lawler restated Ford’s decision to postpone a portion of its planned multibillion-dollar investment in additional E.V. and battery manufacturing capacity.

Compared to its estimated $32,350 loss per E.V. in the second quarter, Ford lost an estimated $36,000 on each of the 36,000 electric vehicles it supplied to dealers.

During Ford’s July second-quarter results conference, Chief Executive Officer Jim Farley stated that the firm will reduce the pace at which it ramps up the production of financially disastrous E.V.s. Instead, he aims to reallocate investment to Ford’s commercial vehicle segment and triple sales of gas-electric hybrids over the next five years.

Ford is “trying to find the balance between price, margin, and E.V. demand,” according to Lawler, who stated as much on Thursday as many of its rivals. According to Farley, “affordability is an issue” for customers.

Earlier this week, G.M. also retracted its prediction for 2023 results and backed down from its frequently stated goal of producing 400,000 electric vehicles by the middle of 2024. Based on LSEG statistics, Ford’s adjusted third-quarter earnings per share of 39 cents fell short of the Wall Street consensus expectation of 45 cents.

LSEG data shows that revenue of $41.18 billion, excluding Ford Credit, fell short of Wall Street estimates of $41.22 billion. According to Ford, its E.V. division reported a $1.3 billion loss in profits before interest and taxes, increasing the company’s nine-month EBIT deficit to $3.1 billion. For the Ford Model E-business, the firm had projected a pretax loss of $4.5 billion for the year.

Customers were not prepared to pay more for E.V.s than equivalent combustion and hybrid cars, according to the carmaker, which claimed that its E.V. division was seeing “sharply compressed” costs and profits.

Ford had a $1.2 billion profit in the third quarter of this year, up from an $827 million loss the previous year. A $2.7 billion noncash writedown on Ford’s stake in the now-closed Argo driverless car firm was one of the losses from last year.

The carmaker reported greater sales, EBIT, and EBIT margins for its Ford Pro commercial vehicle division and its Ford Blue combustion and hybrid vehicle business. Sales of vehicles to dealers in both divisions decreased from the previous year. The adjusted free cash flow decreased from $3.6 billion to $1.2 billion in the prior year.