Boeing Co BA shares opened Tuesday’s session down 0.8 percent after President-elect Donald Trump tweeted that he intends to cancel a Boeing order for a new Air Force One 747.
“Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. Cancel order!” Trump said.
Trump followed up on Tuesday morning by calling the plane “totally out of control” and “ridiculous.” He went on to say that he wanted Boeing to make money, “but not that much money.”
CNBC reports that Boeing won a contract back in January to begin work on a new fleet of Air Force One planes. CNBC’s Phil LeBeau questioned Trump’s numbers.
"I’m curious where this $4 billion number comes from,” he said on Tuesday, noting that the Air Force has earmarked only $1.65 billion for the replacement fleet.
While Boeing shareholders may be upset with Trump specifically targeting their company, Carl Quintanilla points out that Hillary Clinton took similar stances against drug companies throughout the campaign. At one point, Clinton described the price Mylan NV MYL charges for EpiPens “outrageous” and called on the company to lower prices.
Boeing issued the following statement:
"We are currently under contract for $170 million to help determine the capabilities of these complex military aircraft that serve the unique requirements of the President of the United States. We look forward to working with the U.S. Air Force on subsequent phases of the program allowing us to deliver the best planes for the President at the best value for the American taxpayer."
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