Additional Coverage:
- Elon Musk says Boeing is on a ‘much better track’ with its new CEO because its previous leader ‘had no idea how airplanes or rockets worked’ (newsbreak.com)
Boeing CEO Criticized by Elon Musk
Elon Musk, CEO of Tesla and SpaceX, has criticized former Boeing CEO Dave Calhoun for his lack of engineering knowledge. Musk claims that Calhoun “had no idea how airplanes or rockets worked.”
CEO Change at Boeing
Calhoun, an accounting graduate, was replaced as CEO by Kelly Ortberg, who holds a mechanical engineering degree. Musk believes the change in leadership has improved Boeing’s trajectory.
Boeing’s Quality Control Issues
Calhoun’s departure follows a series of quality-control issues at Boeing, including a door plug that flew off a 737 Max 9 during a flight. Investigations by various agencies and reports from whistleblowers have raised concerns about Boeing’s handling of faulty parts.
Ortberg’s Turnaround Plan
Ortberg, the new CEO, has outlined a turnaround plan for Boeing. It focuses on changing the company’s culture, stabilizing its business, improving execution discipline, and building a new future for the planemaker.
Boeing’s Financial Performance
Despite the leadership change, Boeing reported a net loss of $6.1 billion in the third quarter of 2024. The company’s shares have declined by over 31% this year.