US president-elect Donald Trump tweeted Tuesday morning that the US should cancel an order for a new Air Force One plane that would cost billions of dollars, and Boeing shares promptly dipped slightly in morning trading.
“Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion,” Trump tweeted. “Cancel order!”
At the close of the market on Monday, Boeing stock was at $152.16. The stock slipped in premarket trading after Trump’s tweet and continued to dip in early trading, falling 0.9% to $150.90.
Boeing released a statement Tuesday afternoon noting that the company is currently under a contract with the US government.
“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,” the statement said. “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.”
Trump addressed his tweet in Trump Tower in New York on Tuesday.
“The plane is totally out of control,” the president-elect told reporters. “It’s going to be over $4 billion … and I think it’s ridiculous. 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.”
It’s unclear whether Trump’s figure is correct. The New York Times reported last October that the Air Force expected development of two new Air Force One planes to require at least $102 million in the coming fiscal year and $3 billion over the next five years.
A Trump aide told reporters that the president-elect sold all of his Boeing stock in June.
Trump on Boeing/Air Force One tweet: “The plane is totally out of control…we want Boeing to make a lot of money, but not that much money” pic.twitter.com/OnEuw8hfUM
— CNBC Now (@CNBCnow) December 6, 2016
The current Air Force One plane has flown more than a million miles and is due for an upgrade.
Boeing has supplied aeroplanes to the Air Force One fleet for nearly 50 years. The two new planes that will make up the Air Force One fleet will be more powerful and more technologically advanced than the current fleet, according to The New York Times.
The current Air Force One planes have been in commission since 1990.
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