Topline
Space tourism company Virgin Galactic finally completed its first commercial spaceflight Thursday—a milestone for the 19-year-old company that saw its stock tumble more than 10% despite the good news.
This Thursday, June 29, 2023, image provided by Virgin Galactic shows the Virgin Galactic’s … [+] rocket-powered spaceplane during a research flight before gliding back down to Spaceport America in southern New Mexico. With the research flight complete, Virgin Galactic plans to begin commercial flights with paying ticket holders in August. (Virgin Galactic via AP)
Key Facts
As of 1:30 p.m., the company’s stock was trading down more than 12% at $4.17, not long after the flight glided down to Spaceport America in New Mexico—where thousands of onlookers awaited the craft’s return.
Virgin Galactic’s drop in share price came after an increase on Wednesday, when the stock reached up to $4.85.
The flight, named Galactic 01’, sent a crew consisting of two Italian air force colonels, an Italian aerospace engineer from the country’s national research council and three Virgin Galactic members to the edge of space, about 52 miles above New Mexico.
The crew experienced a few minutes of zero gravity during the more than one hour voyage, which at one point reached a top speed of 2,209 mph—more than twice the speed of sound.
Key Background
Virgin Galactic shares also experienced a significant drop last week, tumbling nearly 20% after it was revealed through SEC filings that the company was attempting to raise $400 million through the sale of common stock. British billionaire Richard Branson is the founder of Virgin Galactic, which was founded in 2004 and has dealt with multiple setbacks since, including a botched 2014 test flight that resulted in the death of pilot Michael Alsbury. The company went public in 2019 through a SPAC merger and began trading under the ticker SPCE. Last year, a judge ruled that Branson had to face a lawsuit from multiple shareholders alleging the business magnate sold nine figures worth of company stock at inflated prices and concealed issues with its space program.
Forbes Valuation
Branson was worth $3 billion on Thursday, according to Forbes’ estimate.
Big Number
$450,000. That’s the price of a ticket for a seat on Virgin Galactic’s spaceflights, which more than 800 passengers have already purchased tickets for.
What To Watch For
A follow-up commercial spaceflight for private astronauts is scheduled for August, according to Virgin Galactic. The company added that monthly flights to space are planned to take place after the August launch.
Tangent
Last August, Jeff Bezos’ Blue Origin sent six passengers on a flight to the edge of space on its New Shepard aircraft. A ticket for a seat on the craft reportedly costs more than $1 million.
Further Reading
Virgin Galactic Plans First Commercial Space Flight This Month (Forbes)
Virgin Galactic Stock Tumbles Nearly 20%, Even After Good News—Here’s Why (Forbes)
