President-elect Donald Trump had a bit of an impact on the stock market this morning, and likely made an enemy of major US military contractor Boeing when he Tweeted out criticism of the Air Force One program, saying it was going to cost $4 billion and that the US should “cancel” the order.
Boeing stock dropped in the pre-market on the Tweet, shedding about $1.5 billion in market cap, before eventually recovering by the end of trading. Boeing has issued its own statement downplaying the costs, and insisting their contract on Air Force One is just $170 million.
Trump’s assessment of the cost was not wrong, however, as the GAO has suggested the cost of developing the Air Force One design itself is going to end up costing in excess of $3.2 billion, and then the Air Force will still have to buy the planes themselves, likely at a cost of about $400 million each.
It’s unlikely Trump is actually going to be able to stop the soaring price-tag of the planes, however. Congress ultimately is responsible for deciding on the expenses, and several in Congress are already insisting the new Air Force One “will support good-paying jobs” and needs to be continued irrespective of the cost.