Founded by Richard Branson, Virgin Galactic is a space flight company based in California and New Mexico. They are currently preparing to launch the Delta class spacecraft for research flights until 2025.
Shares traded down as much as 7% in the first half of the year
Despite its status as the winning space flight stock, Virgin Galactic shares are still struggling to find a liftoff. It has lost as much as 30% this month, as it faced a series of delays with its SpaceShipTwo space plane.
Virgin Galactic is the only publicly listed commercial human spaceflight company. In late June, the FAA granted the company a commercial launch license. However, it’s still in the pre-sales stage and hasn’t even flown a paying passenger. The company is in debt and needs to raise money to build two new motherships.
The company is slated to begin commercial flights in 2022, but it’s not certain if it will be able to reach that target. It’s also unclear whether or not it will have the necessary cash reserves to finance the operation.
Space tourism company without profits
Founded by Richard Branson, Virgin Galactic has plans to launch tourists into space. It has signed up hundreds of prospective customers, including celebrities and scientists. These people are willing to pay up to $250,000 for a flight.
The company’s mission is to disrupt the traditional aviation industry by bringing tourists to space. The goal is to generate millions of dollars in revenue when commercial services start in 2021. But in order to make that happen, the company must figure out how to generate profits.
Virgin Galactic is still in the testing phase of its spaceflight system. It has plans to have three spaceships ready to fly by the end of the year. However, it might not be ready to start commercial operations until the fourth quarter of 2023.
SpaceShip III spaceplane grounding
Despite the hype surrounding SpaceShip III’s much-awaited maiden voyage, a new entrant is sure to swoop in and steal the thunder. A company known as Blue Origin is hard at work building its second flight of the ilk and has a few wacky fliers of its own to boot. As for the company’s founder, a former astronaut, a snarky pilot or two, and a few stragglers to bet on, the only thing that will keep them from their lofty goals is the aforementioned tyranny of testosterone. That is, unless, they get the upper hand on the Feds. Aside from a hefty price tag, the Virgin Group has to keep its passengers on the ground at all times. This is a tall order to fill, especially if they plan to make the trek into orbit and back again in the not-too-distant future.
Delta class spacecraft starting research flights until 2025
Until Virgin Galactic’s Delta class spacecraft begins research flights in 2025, the company will not fly its existing spaceships for revenue. Those two spaceships, VMS Eve and Unity, are undergoing a complete refurbishment. They will be upgraded to better withstand the intense heat of space, as well as to lessen the amount of time and maintenance required on them. They are also being made to allow for a more frequent flight schedule once commercial service begins.
While the upgrades are being made to the current spaceships, Virgin Galactic has begun preparing for the next generation of vehicles. The company has already invested hundreds of millions of dollars in the development of these new spaceships. These Delta-class spaceplanes are designed to be produced on an assembly line. They will be capable of flying once a week, which will help meet the demand for suborbital spaceflights.
Shares split to focus on low-cost launch services
During the last year, Virgin Galactic has made a number of notable advances in suborbital spaceflight. The company has also teamed up with Boeing to broaden commercial space access. This will include the development of a private orbital astronaut readiness program. The first operational SpaceShipTwo vehicle will begin commercial operations by 2020.
There are also several other space companies making strides this year. These companies provide investors with additional opportunities outside of Virgin Galactic.
There is no denying that investing in a company with the capability to launch people into space has become a hip pastime. But, there are some limitations. It’s not easy to identify the best space companies and it’s not a great idea to buy stock in all of them. This is why I recommend focusing on companies with a strong track record of earnings growth.