What's Going On With Boeing Stock Tuesday?

Boeing Co BA shares are trading lower Tuesday. Here’s a look at what’s going on.

What To Know: In a letter to employees on Monday, Stan Deal, president of Boeing Commercial Airplanes, said the company will require additional quality inspections for its 737 MAX jets after a cabin panel blew out of one of its planes on an Alaska Airlines flight earlier this month, per Reuters.

Boeing reportedly plans to send a team to oversee work at Spirit AeroSystems, which makes and installs the part of the plane that was involved in the incident.

In addition to inspecting the door plug at Spirit, the Boeing team will check the production process at 50 other points. Boeing will also hold informational training sessions for employees regarding quality management and bring in a third party for an independent assessment of its processes.

“Everything we do must conform to the requirements in our QMS. Anything less is unacceptable. It is through this standard that we must operate to provide our customers and their passengers complete confidence in Boeing airplanes,” Deal reportedly said in the letter to employees.

The news comes after the Federal Aviation Administration on Friday extended its order for Boeing Max 9s to remain grounded. United Airlines and Alaska Airlines also canceled flights through Tuesday.

Boeing shares may also be facing selling pressure Tuesday following a downgrade from Wells Fargo.

Wells Fargo analyst Matthew Akers downgraded Boeing from Overweight to Equal-Weight and lowered the price target from $280 to $225.

See Also: Passengers Hit Boeing With Lawsuit: Ill-Fated Alaska Airlines Flight Was ‘Waking Nightmare’

BA Price Action: Boeing shares were down 2.48% at $212.31 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Boeing.