Virgin Galactic has yet another delay as the Unity 23 is now expected to launch in the middle of 2022 at earliest. Quite incidentally, the stock is now also plunging after the announcement of the delay.
Virgin Galactic Gets Another Setback
Virgin Galactic has yet again suffered another setback. The company told CNBC that it has delayed the start of its very own commercial space service to the fourth quarter of 2022.
The company previously hoped to start offering paid space flights to some particular time in the third quarter of 2022. With this particular delay, the company will finally start refurbishing both its carrier airplane as well as its spacecraft this October 2021, according to Engadget.
Unity 23 Space Flight
Virgin Galactic notes that the company expects the whole process to take between at least eight to 10 months. Due to this estimation, it could be stated that the company's next flight, the Unity 23, won't be able to take off until some time during the middle of 2022 at the very earliest.
Virgin Galactic CEO Michael Colglazier gave a statement regarding the delays. It was noted that the re-sequencing of the company's enhancement period as well as the Unity 23 flight underscores on its very own safety-first procedures, now providing them with the most efficient path towards commercial service. It was noted that this is the right approach for the company's business and their customers.
Virgin Galactic Shares Drop
The delay is reportedly not connected to the recent investigation made by the FAA which was conducted into the older Unity 22 which is the flight that took Richard Branson, the founder of Virgin Galactic, to the edge of space. The famed William Shatner Blue Origin flight has finally blasted off!
The federal agency then cleared the company for other future flights after completing the said investigation. Shares reportedly dove over 12% after the space-tourism company had announced yet another delay. The delay was reportedly announced to check certain material's strength.
After-Announcement Share Drop for Virgin Galactic
According to MarketWatch, Virgin Galactic Inc. had just announced that it would be delaying its next test flight and the official start of its own space-tourism business. Shares then fell quite hard in late trading.
Virgin Galactic stock reportedly fell over 12% in after-hours trading. This was after closing with a 0.5% gain at the price of $24.06. Shares have reportedly been struggling ever since August falling a massive 27.3% in the last three months as the S&P index or SPC has reportedly declined by just 0.2%.
As for whether the company will be able to compete with SpaceX, this has yet to be seen as Virgin Galactic still has to be able to make consistent flights and at least come closer to SpaceX's number. Meanwhile, SpaceX is getting ready to roll out its Starlink satellite internet connection nationwide.
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Written by Urian B.