SpaceX CEO Elon Musk heaped praise on Boeing Co.’s BA current CEO earlier this week after slamming its former CEO Dave Calhoun for the company’s many hardships throughout the year.
What Happened: “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 about Boeing’s new CEO Kelly Ortberg earlier this week.
Ortberg took the reins of the company from Calhoun in August. Ortberg is a mechanical engineer and was previously CEO of Collins Aerospace.
Musk wasn’t so appreciative of Boeing’s former CEO Calhoun.
"The CEO of an aircraft company should know how to design aircraft, not spreadsheets," Musk said in June, reiterating his opinion that manufacturing companies should have engineers at the management level. He was seemingly referring to Calhoun’s educational background in accounting.
Why It Matters: Boeing’s airplane division has been having a hard time since a door plug panel flew off an Alaska Airlines plane manufactured by the company soon after take off in January.
Boeing’s Space segment has also faced hardships this year with technical issues identified with its Starliner spacecraft. The company’s cash burn worsened over the recent weeks after over 33,000 U.S. West Coast factory workers went on strike, halting production of key aircraft models.
For the third quarter, Boeing reported a 1% fall in revenue to $17,840 million and a core operating loss of $5,989 million as compared to a loss of $1,089 reported for the corresponding period last year.
In a bid to bolster its finances, Boeing recently launched a stock offering that could raise nearly $21 billion, excluding options for the underwriters to purchase additional shares and securities.
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