Elon Musk's Drone Vision Jolts Lockheed Martin as F-35 Criticism Sinks Stock 3.75%
1min read On November 25, Lockheed Martin's (LMT) stock fell by 3.75%, hitting its lowest point since July 2024 at intraday low. The downturn follows remarks by Elon Musk, who criticized Lockheed Martin's F-35 fighter jet on Twitter, suggesting that drone technology will replace manned fighter jets. Despite the discussion Musk's comments stirred, experts maintain that modern fighter jets remain indispensable. Lockheed Martin highlighted the F-35’s significance while expressing eagerness to collaborate with the new administration.
The F-35 series remains the principal stealth fighter jet in service with the US military's Navy, Marine Corps, and Air Force. It is widely used internationally with countries like the UK, Norway, Canada, Australia, Japan, Israel, and South Korea having integrated it into their arsenals. In total, the production of this fifth-generation jet has surpassed a thousand units globally.
Interestingly, Elon Musk, a significant figure in American innovation and prospective head of a government efficiency department, criticized the production of the F-35. His opinion suggests that unmanned drones represent the future of aerial combat, a stance reflecting some of the challenges and critiques faced by the F-35. Despite its popularity, the aircraft is noted for issues such as inadequate maneuverability and internal weapons bay size, which restricts it from carrying next-generation heavy missiles.
The world has changed since the F-35 first took flight, a time when the US had a monopoly with only the F-22 and F-35 as viable fifth-generation fighters. Now, with the introduction of aircraft such as China's J-20 and Russia's Su-57, the dominance once held by US stealth fighters like the F-35 is diminishing, thereby amplifying its shortcomings.
Musk’s remarks may also be economically motivated, pointing to the F-35's exorbitant costs. The program could eventually exceed $2 trillion, potentially making it the most expensive fighter jet endeavor in US Air Force history. Such a financial strain might stifle other areas, particularly the development of unmanned systems, aligning with Musk's views on future warfare.
Despite Lockheed Martin's F-35 program serving as a substantial revenue stream, Musk’s possible future endeavors to curb its influence could trigger significant debate within the high ranks of America’s defense sector. However, given Lockheed Martin's substantial influence, any attempts to 'reshuffle' their operations in Washington could face staunch resistance.