Elon Musk says Boeing is on a 'much better track' with its new CEO because its previous leader 'had no idea how airplanes or rockets worked'
Kwan Wei Kevin Tan
Dec 26, 2024, 9:09 AM EST
"The prior guy had no idea how airplanes or rockets worked. Just zero," Elon Musk said of former Boeing CEO Dave Calhoun on Wednesday. Apu Gomes via Getty Images; Anna Moneymaker via Getty Images
- Elon Musk had some criticism for former Boeing CEO Dave Calhoun on Christmas Day.
- "Boeing is on a much better track with the new CEO," Musk wrote on X.
- Musk said Calhoun, an accounting graduate, "had no idea how airplanes or rockets worked."
Boeing is "on a much better track" after changing CEOs, Tesla and SpaceX CEO Elon Musk said on Wednesday.
Musk was talking about America's shortage of engineering talent on X when he was asked about the embattled aerospace manufacturer.
"That said, talking in terms of specific companies, Boeing is on a much better track with the new CEO. The prior guy had no idea how airplanes or rockets worked. Just zero," Musk wrote in his post.
Boeing was previously led by Dave Calhoun, who served as the company's CEO from January 2020 to July 2024.
The Virginia Tech accounting graduate was succeeded by former Rockwell Collins CEO Kelly Ortberg in August. Ortberg holds a degree in mechanical engineering from the University of Iowa.
When Boeing announced Calhoun's resignation in March, Calhoun said the decision was 100% his own.
"I've entered my fifth year. At the end of this year, I'll be close to 68 years old," Calhoun said in an interview with CNBC.
This isn't the first time Musk has criticized Calhoun's academic background. Back in June, Musk said that Boeing had lost touch with its engineering roots.
"The CEO of an aircraft company should know how to design aircraft, not spreadsheets," Musk wrote in an X post on June 25.
Representatives for Calhoun and Ortberg at Boeing did not respond to Business Insider's request for comment. Musk also did not respond to a request for comment.
Calhoun's departure came amid a deepening quality-control crisis at Boeing.
The aerospace company faced intense scrutiny in January after a door plug flew off a Boeing 737 Max 9 during an Alaskan Airlines flight from Oregon to California.
The incident resulted in a series of investigations from the Federal Aviation Administration, the Department of Justice, and the National Transportation Safety Board.
According to a Senate subcommittee report on Boeing's safety and quality practices that was published in June, several whistleblowers came forward to express concerns about how Boeing handles faulty plane parts.
Calhoun's predecessor, Dennis Muilenburg, was fired after two crashes involving a different Max variant, the Max 8, killed 346 people in 2018 and 2019.
Calhoun publicly apologized to the families of the crash victims during a Senate hearing in June, but defended Boeing's safety record when he was grilled by lawmakers.
"You're proud of the safety record?" Sen. Josh Hawley of Missouri asked Calhoun.
"I am proud of every action we've taken," Calhoun said.
In October, Ortberg shared his four-part turnaround plan for Boeing in a memo to employees.
Ortberg's plan called for a fundamental change in the company's culture, a stabilization of its business, an improvement in execution discipline, and the building of a new future for the planemaker.
"We need to be on the factory floors, in the back shops and in our engineering labs. We need to know what's going on, not only with our products, but with our people," Ortberg wrote.
"And most importantly, we need to prevent the festering of issues and work better together to identify, fix, and understand root cause," he added.
Boeing reported a net loss of $6.1 billion in the third quarter of 2024 in the same month. The company recorded a loss of more than $1.4 billion in the previous quarter.
Boeing's shares are down by over 31% this year.
"It will take time to return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again," Ortberg said in his October memo.
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