U.S. President-elect Donald Trump took aim at another major defense contractor on Monday, saying the cost of Lockheed Martin’s F-35 fighter jet program was too high. Conway Gittens reports.
(BVO) – Lockheed Martin is the latest stock taken down by a Trump Tweet.
Shares of the defense contractor losing four percent on Monday after President Elect Donald Trump blasted its troubled stealth jet program tweeting:
“The F-35 program and cost is out of control. Billions of dollars can and will be saved on military (and other) purchases after January 20th.”
Lockheed responding by saying it realizes there are concerns about the program’s spiraling costs and has invested millions of dollars to bring down the jet’s price.
The defense contractor is supposed to get more than $7 billion to deliver 90 fighter jets to the U.S. government.
Last week, Trump targeted Boeing – the maker of the new Air Force One – saying he wanted to cancel the next order for the presidential planes because costs are “out of control.”
Trump is trying to make good on his campaign pledge to cut the waste out of government spending….but defense executives and their investors certainly didn’t think he was talking about them. Republican administrations tend to favor heavy military contracts.
His Twitter attack catching the sector off guard. Besides Lockheed, Boeing , BAE Systems, Northrop Grumman and United Technologies are down as well..