Here's Why Boeing Shares Slumped Today
Shares of (NYSE: BA) were trading more than 4% lower as of 1:45 p.m. ET Tuesday after news broke that the aerospace and defense giant had suspended flight tests of its 777X airplane.
As reported by aviation news service The Air Current, Boeing grounded the test fleet for its latest widebody airplane after routine inspections of one of the jets found that a key mounting component for one of its engines had failed. This is disappointing for investors for multiple reasons.
First, it's another indication of ongoing quality issues at Boeing. Second, it raised the prospect of a delay in the production and deliveries of the 777X. Third, it could potentially have cash implications for the company -- the last thing it needs right now. Finally, customer concerns about the new plane could lead to a delay in 777X orders.
Source Fool.com
Boeing Co. Stock
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