VIRGIN GALATIC STOCK DROPS AMID FLIGHT TEST PROBLEMS AND DELAYS
Virgin Galactic Holdings Inc. stock has fluctuated with its ever-changing test flight schedule that further delays when commercial space tourism flights will begin at Spaceport America.
The stock went public Oct. 28, 2019, and has since hit peaks and valleys that mirror successful or aborted test flights.
Its 52-week high is $62.80, which was achieved Feb. 4, according to a March 3 article by MarketWatch. Its 52-week low is $9.06. At the time of an aborted test flight on Dec. 12, 2020, the company’s stock was selling in the low $30s.
The test objective was to launch SpaceShipTwo, manned by two pilots, from the mothership WhiteKnightTwo into suborbital space, after which SpaceShipTwo was to feather back into the atmosphere and glide back safely to the Spaceport. The spaceship detached from the mothership about 50 miles up, but then its rockets didn’t fire.
“After being released from its mothership, the spaceship’s onboard computer that monitors the rocket motor lost connection,” Virgin Galactic CEO Michael Colglazier tweeted soon after the failed launch. “As designed, this triggered a fail-safe scenario that intentionally halted ignition of the rocket motor.”
SpaceShipTwo safely glided back to earth, but, according to a Dec. 14 CNBC.com report, Virgin Galactic’s shares dropped 17 percent on the next trading day.
The make-up test flight was to be Feb. 13, but the company tweeted the day before that it had decided to “allow more time for technical checks.”
The stock had climbed since the failed December launch, but, after the February test flight was cancelled, shares dropped 9.2 percent to $53.95.
Virgin Galactic announced Feb. 25 that it was putting off test flights another two months, according to same-day reporting by SPACENEWS.
The company needed the additional time to correct electromagnetic interference stemming from the new flight control computer, which caused the rockets not to fire, SPACENEWS reported.
The Motley Fool.com, a stock analysis website, reported on March 4 that Virgin Galactic Holdings Inc. stock had dropped by 3.3 percent by 11 a.m. EST that day. The slide was likely related to the successful test conducted the day before in Texas of the landing capabilities of SN10 Starship, a reusable spaceship developed by Elon Musk’s SpaceX company.
“Potentially, SpaceX could be offering space tourism tickets for as little as $20,000 apiece just two or three years from now,” The Motley Fool article stated, “and Virgin Galactic could have some serious competition on its hands.”
Since its founding in 2004, Virgin Galactic has sold 600 suborbital spaceflights. Early adopters paid $200,000. Later buyers paid $250,000. The company stopped selling flight tickets in 2018. Interested parties may now pay a deposit of $1,000 to join a queue of those who will be given preference when commercial tourist spaceflights become available at an undetermined price, according to CNBC.
The next test flight for SpaceShipTwo is to be sometime in May, according to the Feb. 25 SPACENEWS article, delaying, in turn, tourist flights to space until 2022.
As the Sun went to press today, national news outlets reported that Virgin Galatic’s chairperson had sold $210 million of the company’s stock, further pressuring its price.
SCOTT MCLAUGHLIN NAMED SPACEPORT EXECUTIVE DIRECTOR
The New Mexico Spaceport Authority Board selected Scott McLaughlin this week as Spaceport America’s executive director after a four-month application period.
The Spaceport hired McLaughlin in 2019 as an engineer and shortly afterward promoted him to business development director.
In July 2020, McLaughlin was appointed interim executive director after then Spaceport director Dan Hicks was accused of financial wrongdoing and placed on administrative leave. Hicks was fired in October after a forensic audit confirmed that his tenure had been marked by procurement, human resources and other management violations.
Alicia Keyes, secretary of the New Mexico Economic Development Department, the parent agency of Spaceport America, and chairperson of the Spaceport Authority board, announced McLaughlin’s selection on Tuesday, March 2.
“Scott brings deep knowledge and extensive experience to the management of New Mexico’s Spaceport America,” Keyes stated in a press release. “He has proven himself as a skilled administrator who can collaborate with employees, the state and our innovative business partners to ensure Spaceport America operates safely and continues to drive job growth in Southern New Mexico.”
McLaughlin is a New Mexico native who received an electrical engineering degree from New Mexico State University. He moved to Texas and then Colorado, where he designed a wind-radar system that he successfully scaled up to become a manufacturing business. Until his return to New Mexico in 2018, he traveled all over the world, installing, marketing and maintaining wind-radar systems.
His designs have been used to support space launches, weather services, pollution studies and shipboard wind measurements.
McLaughlin’s interest in space was influenced by the iconic 1968 Earthrise photograph taken aboard Apollo 8 by astronaut Bill Anders. “Due to human ingenuity and our desire for exploration, the [Earthrise] picture gave us a perspective of ourselves and our world we never had before,” McLaughlin stated in the EDD press release. “It is important for humanity’s future that more and more people see our planet in that way.”