Boeing Stock Drops 3.3% Amid Legal, Production Challenges

On April 3, 2025, The Boeing Company's stock experienced a 3.3% drop in pre-market trading.

Boeing's CEO, Kelly Ortberg, recently disclosed that the company is in discussions with the U.S. Department of Justice to modify an earlier plea agreement related to the 737 MAX aircraft incidents in 2018 and 2019. The original agreement, reached in 2021, is under scrutiny following a 2024 midair incident involving a 737 MAX aircraft. The court has set a deadline of June 23, 2025, for the parties to reach a new agreement, or the case will proceed to trial.

Additionally, Boeing is facing production challenges with its 737 MAX aircraft. The company has reduced the monthly production rate from 38 to 31 units due to delays in installing wing systems. This adjustment comes as Boeing operates under a cap set by the Federal Aviation Administration, which limits 737 MAX output to 38 per month.

In the space sector, Boeing's Starliner spacecraft, which encountered technical issues during its recent mission, is being prepared for its next flight. NASA and Boeing are collaborating to address the anomalies experienced during the previous flight, with plans to conduct further testing before the next mission.