Boeing's Stock Takes a Nosedive: 737 MAX Woes Trigger 20% Plunge in 2024

Boeing's shares (NYSE: BA) have plummeted by over 20% since the start of 2024, primarily due to challenges surrounding its 737 MAX model.

737 MAX 9 Incident Sparks Investor Exodus

Boeing's stock hit a two-month low as investors abandoned ship following a significant incident involving the 737 MAX 9 jet, resulting in its grounding and an FAA investigation.

FAA Probe Raises Concerns for Boeing's Future

The FAA's investigation into the 737 MAX 9 incident has raised concerns for Boeing's future, with analysts from Wells Fargo stating, "Odds of a clean audit are low," indicating potential challenges ahead.

Wells Fargo Downgrades Boeing Amidst Uncertainty

Given the ongoing investigation and Boeing's recent track record, Wells Fargo analysts downgraded Boeing's stock from Overweight to Equal Weight, foreseeing potential impacts on production and deliveries.

Boeing's Response and Independent Assessment

In response to the investigations, Boeing expressed its commitment to full cooperation with the FAA and NTSB. The company appointed a team led by retired US Navy Admiral Kirkland H. Donald to assess its quality management system for commercial airplanes.

Quality Control Concerns Persist

Boeing's decision to bring in external expertise follows years of grappling with persistent quality and safety challenges. The 737 MAX's troubled history, involving fatal crashes and a 20-month grounding, has cost Boeing over $21 billion.

Broader Impact on Boeing's Aircraft

Boeing's quality and safety issues extend beyond the 737 MAX, affecting other models like the 787 Dreamliner and the 777, resulting in delivery halts and grounding due to engine failure.

Boeing faces a tumultuous start to 2024, with a significant stock decline and ongoing scrutiny over the safety and quality of its aircraft. The FAA investigation adds further uncertainty, prompting analysts to express caution about Boeing's prospects.