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Boeing stock price drops due to wiring defect found in the 737 MAX aircraft
Investing.com - Boeing (NYSE:BA) stock fell more than 3% on Tuesday morning after The Wall Street Journal reported that the company discovered wiring defects on some 737 MAX aircraft, which will lead to delivery delays.
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The aircraft manufacturer said wiring scratches were found on undelivered planes, tracing the issue back to machining errors. Boeing did not provide details about the necessary repairs or the number of affected aircraft.
A Boeing spokesperson said repairs for each aircraft can be completed within a few days. While this delay may slow overall aircraft deliveries for the month, the company still maintains its goal of delivering about 500 737 MAX planes to customers this year.
This setback makes it more complicated for Boeing to demonstrate to regulators that it is reducing manufacturing errors. After a 737 MAX door fell off mid-flight in January 2024, regulators imposed stricter oversight, requiring the company to slow production. The incident led to increased scrutiny, revealing other defects in the production lines of the 737 and 787 Dreamliner aircraft.
The stock recovered about half of its losses later in the trading session. Despite the overall strength of the S&P 500 on Tuesday, Boeing’s stock still declined.
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