Boeing share price briefly plummets after president-elect claims project is costing $4bn: ‘I think Boeing is doing a little bit of a number’

Donald Trump has called for Boeing to lose its contract to build Air Force One, the president’s private airplane, citing what he claimed was a $4bn price tag.



“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!” the president-elect wrote on Twitter.

Donald J. Trump (@realDonaldTrump) 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!

Speaking to journalists in the lobby of Trump Tower the president elect elaborated on his Twitter post: “The plane is totally out of control. It’s going to be over $4bn for Air Force One programme and I think it’s ridiculous,” he said. “I think Boeing is doing a little bit of a number. We want Boeing to make a lot of money, but not that much money.”



Trump’s statements briefly sent Boeing’s share price into a tailspin. Shares dropped more than $1 before recovering. Boeing issued a statement shortly after Trump’s remarks: “We are currently under contract for $170m to help determine the capabilities of these complex military aircraft that serve the unique requirements of the President of the United States,” spokesman Todd Blecher wrote on Boeing’s website. The $4bn number is believed to come from an analysis by a Washington thinktank, the Center for Strategic and International Studies (CSIS).

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“We look forward to working with the US 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.”

The statement and the share price fall also reopened the debate on Trump’s opaque finances. In January 2013 Trump tweeted that he had bought Boeing’s stock after issues with its 787 Dreamliner had hurt its share price. “.@Boeing stock went way down because of 787 – so I just bought stock in @Boeing- great company!” he wrote.

Trump mentioned the company twice more in 2013, saying he preferred the 757 to the Dreamliner and opining the same day that Boeing should deal with faulty battery problems troubling the latter airplane.

Donald J. Trump (@realDonaldTrump) .@Boeing stock went way down because of 787- so I just bought stock in @Boeing- great company!

Trump owned between $50,001 and $100,000 of Boeing stock as of his May 2016 financial disclosure. In July 2015, his campaign stated that he had sold shares in the company in January 2014 for a gain of $3,964,948, according to a press release. Trump’s diverse financial holdings are unusual for an American president-elect. In the release detailing his stock dealings, his then spokesman Corey Lewandowski said that the required FEC report “was not designed for a man of Mr Trump’s massive wealth”.

During a call with the transition team on Tuesday morning, communications director Jason Miller was asked about the movement in Boeing’s share price and said the president-elect had sold all of his stock “back in June”.



Miller said that Trump’s issues with the Boeing order would be dealt with after his inauguration next month. The post “really speaks to the president-elect’s focus on keeping costs down across the board”. Miller said.

While the president-elect’s team has clearly stated that he has sold his individual holdings, it is unknown whether Trump holds Boeing stock in other investment vehicles. His refusal to release his tax records makes it difficult to assess the full extent of any potential conflicts of interest that will come with his presidency.



The president-elect could show brokerage statements and trade confirms to demonstrate that Trump had sold his stake – like a bank account, it would show all the relevant information. The Depository Trust and Clearing Corporation (DTCC), which holds stock certificates, would also issue paper certificates showing the transfers at Trump’s request.

With respect to his individual tax returns, Trump has broken with tradition by refusing to hand them over to the public. His stated reason is that the returns are currently under audit, but the Internal Revenue Service has said repeatedly that the presence of an audit has no bearing on whether Trump is allowed to release his tax information.