LOS ANGELES _ Donald Trump criticized the F-35 fighter jet program in a tweet Monday morning, sending shares of prime contractor Lockheed Martin Corp. and other defense stocks tumbling. It was the second time in a week that the president-elect has publicly called out a big aerospace company by name.
"The F-35 program and cost is out of control," Trump tweeted Monday morning. "Billions of dollars can and will be saved on military (and other) purchases after January 20th."
Lockheed Martin stock was down $11.81, or 4.6 percent, to $247.72 in Monday morning trading on Wall Street. So far, Lockheed Martin has lost more than $3 billion in market value.
Shares of Northrop Grumman, a big subcontractor on the F-35, fell $10.16, or 4.3 percent, to $228.27. Boeing, whose stock price got hammered briefly last week when Trump tweeted critically about its Air Force One contract, dropped slightly on Monday morning, by 61 cents, or 0.4 percent, to $155.88.
Known as the Joint Strike Fighter, the F-35 is a fifth-generation fighter jet that is designed to be largely invisible to radar, fly faster than the speed of sound and incorporate advanced sensors, linking data with ships, planes and drones. Its helmet displays feeds from video cameras embedded in the plane so a pilot can look "through" the jet to see targets.
The new fighter would replace four aircraft, with three design variations to meet the unique requirements of the Air Force, Marine Corps and Navy. The F-35B for the Marines has short takeoff and vertical landing capabilities, and the F-35C for the Navy can be launched via catapult from conventional aircraft carriers.
The program has been repeatedly criticized over the years for cost overruns and lengthy delays, though its cost has been declining recently.
Originally set to enter full-scale production in 2008, the most expensive weapons program ever is now gearing up for 2019. With a total estimated cost of $379 billion, it is considered the most expensive weapons program ever.
Eventually, more than 3,000 planes will be built for the U.S. and 11 other countries.
Partnering with other nations to help produce and buy the plane was seen as a way to help spread the program's costs. In April, the U.S. Government Accountability Office said that estimated acquisitions costs for the program had decreased since 2014, though it still said the program faced "significant affordability challenges."
"There is no arguing with the point that it's had its growing pains and some of the growing pains were severe," said Mark Gunzinger, senior fellow at the Center for Strategic and Budgetary Assessments, a defense research institute. "But at this point, frankly, it's not experiencing the kinds of problems it was experiencing even three to four years ago."
Jeff Babione, executive vice president and general manager of the F-35 program at Lockheed Martin, said Monday that the company and its partners "understand the importance of affordability for the F-35 program."
"We welcome the opportunity to address any questions the president-elect has about the program," he said during remarks at Nevatim Air Base in Israel before an F-35 delivery ceremony there.
Last week, Trump took aim at Boeing, criticizing the cost of new Air Force One planes to transport the president, tweeting: "Cancel order!" The aerospace giant's stock initially dropped in early trading after Trump's tweet, but later recovered.
