Lockheed lowers price of F-35 fighter jet

President Trump is finally getting his wish for a less expensive F-35 fighter jet.

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Defense contractor Lockheed Martin said Tuesday it has reached an agreement with the Pentagon that will lower the cost of the F-35A by 12.8 percent to $77.9 million, marking for the first time the price tag has dipped below $80 million. The F-35A currently costs $89.2 million.

The announcement comes as Lockheed and the F-35 Joint Program Office finalized a $34 billion agreement for the production of 478 aircraft.

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LMTLOCKHEED MARTIN CORPORATION381.38-0.48-0.13%

"Driving down cost is critical to the success of this program," Air Force Lt. Gen. Eric Fick, F-35 Program Executive Officer said in a press release, adding that deal is a "truly historic milestone for the F-35 Enterprise."

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The lower price point will likely appease Trump, who has in the past taken issue with the fighter jet's cost.

FILE - In this Sept. 19, 2019 file photo, National Guard members, left, view the first two F-35 fighter jets that arrived at the Vermont Air National Guard base in South Burlington, Vt. (AP Photo/Wilson Ring, File)

"The F-35 program and cost is out of control," Trump tweeted shortly after his election victory. "Billions of dollars can and will be saved on military (and other) purchases after January 20th."

The president-elect even threatened to price out the competition.

"Based on the tremendous cost and cost overruns of the Lockheed Martin F-35, I have asked Boeing to price-out a comparable F-18 Super Hornet!" he tweeted.

Last week, Lockheed Martin reported third-quarter earnings of $5.66 a share on net sales of $15.17 billion – both were ahead of expectations.

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Lockheed Martin shares are up 42 percent this year.