Tuesday’s Headlines: Boeing Fires Its CEO Amid MAX Crisis
Greeting investors! There will be no more Market Talk during the Holiday period, but our regular Insights will continue over the coming weeks. Happy Holidays!
1. On Monday, Boeing fired CEO Dennis Muilenburg as the company struggles to regain the trust of regulators, customers and the public after two fatal crashes of its best-selling plane, the 737 Max, killed all 346 people aboard. The company’s stock price rose nearly 3% following the report, as Chairman David Calhoun will become the manufacturer’s new CEO on Jan. 13. Last week the company shuttered 737 Max production as regulators’ investigations failed to conclude before the new year. Get the full story here.
2. Tesla stock rose more than 3% by market close on Monday after news that the electric vehicle maker had reportedly agreed to a new 10 billion yuan ($1.4 billion), five-year loan facility for the automaker’s Shanghai car plant. Tesla broke ground on the factory in January and has started producing vehicles from its Shanghai plant. It aims to build at least 1,000 Model 3 cars a week by the end of this year. Read here for the full story.
3. The Securities and Exchange Commission is investigating the listings of Slack Technologies Inc. and other major companies on the New York Stock Exchange, in a probe looking at how trading was handled on the first day. SEC enforcement staff have recently sent letters including one seeking information from electronic-trading firm Citadel Securities LLC related to how it opened Slack’s stock for trading on June 20 in the workplace-messaging app’s so-called direct listing. Read the full story here.