Elon Musk, the outspoken CEO of Tesla and SpaceX, has taken a swipe at Boeing’s leadership, but this time, it’s not all criticism. While he previously slammed the company’s former CEO, Dave Calhoun, for his lack of engineering experience, Musk has expressed newfound optimism about Boeing’s future under its new leader, Kelly Ortberg.
Musk, known for his passion for innovation and technical prowess, took to Twitter earlier this week to praise Ortberg, who assumed the helm of Boeing in August. “The new Boeing CEO spends time in the factory and understands engineering, which are big improvements. Hopefully, he turns around a once great company,” Musk wrote.
This positive remark stands in stark contrast to Musk’s previous criticism of Calhoun. Back in June, Musk bluntly stated, “The CEO of an aircraft company should know how to design aircraft, not spreadsheets,” seemingly referencing Calhoun’s background in accounting. Musk’s stance underscores the importance of technical expertise in driving success in manufacturing industries.
Boeing has undeniably faced a turbulent year. Its airplane division has grappled with production delays and safety concerns following an incident in January where a door panel detached from an Alaska Airlines plane during takeoff. The company’s Space segment hasn’t fared much better, encountering technical glitches with its Starliner spacecraft.
To add to the company’s woes, over 33,000 factory workers on the U.S. West Coast went on strike in recent weeks, halting production of key aircraft models. This labor dispute further exacerbated Boeing’s financial struggles. The company reported a 1% decline in revenue to $17,840 million for the third quarter, alongside a significant core operating loss of $5,989 million, compared to a loss of $1,089 million in the same period last year.
In a bid to strengthen its financial position, Boeing recently launched a stock offering that could raise nearly $21 billion. This move reflects the company’s efforts to navigate its current challenges and regain its footing in the highly competitive aerospace industry.
With Ortberg’s engineering background and commitment to hands-on leadership, it remains to be seen whether he can turn the tide for Boeing. Musk’s positive remarks suggest a glimmer of hope for the aerospace giant, but the company still faces a multitude of hurdles in its quest for recovery.
