American global aerospace and technology company Lockheed Martin shares plunged along with the company’s market value after U.S. president-elect Donald Trump tweeted against the company’s f-35 fighter plane program stating that the production of the said planes was way too costly.
Trump tweeted on Monday that “billions of dollars can and will be saved on military (and other) purchases on January 20” which is the exact date when Trump will take his seat at the White House. Defense Secretary Ash Carter was then about to deliver first of the country’s two stealth fighters to Israel.
During Tuesday’s early trading, shares of Lockheed Martin declined to as much as 4% at $248.51 before ending the day’s session at around 2% lower. Despite the lower close, the company’s market value have plunged by as much as $4 billion following Trump’s tweet.
Trump’s tweet goes back to his one of the highlights of his campaign which includes the initiative to lessen federal spending waste and to lessen military purchases spending which includes the equipment of new aircraft carriers from the UK.
About twenty percent of the company’s total revenue for 2015 reportedly came from their F-35 program with the US
The Maryland-based company’s F-35 program is currently the Pentagon’s most expensive order yet with 90 units of the F-35 Lightning II jets order in pending from the company. The program is now currently in the first tranche of the program where it has been reported to cost by more than $391 billion. The U.S. air force has also reportedly started the process of assigning bases where the stealth warplanes will be placed and handled. According to the U.S. Air Force, the fighter jets would be ready by August.
Jeff Babione from Lockheed Martin answered to the tweet stating that the F-35 program is of ‘great value’ to the country and that they would be willing to answer any questions that the elected President might have.
Lockheed Martin Shares
Lockheed Martin shares dropped to around 4.2% to $248.51 in the early morning trading during Monday’s session before closing at around 2.47% lower.
From the previous trading session opening at 258.60 and a closing price of 259.53, Monday’s trading session opened at 251.78 before closing higher at 253.11, although the shares of the company haven’t been oversold, the Lockheed Martin shares are still set for a decline.
According to the company, the price of the F-35 has so far been reduced down by around 60% which will lead the aircraft to be priced at around $85 million in 2019 and 2020.