Why Virgin Galactic Stock broke on Thursday
Galactic Virgo (NYSE: SPCE) the stock improved slightly today, rising nearly 6% before falling back to close at 3.9%. The move came in response to a 2pm tweet from the company announcing its next test flight. But here’s the curious thing:
They don’t test the space plane which failed his flight test in December; they test the mothership which door the space plane instead.
As Virgin Galactic explained without explaining: “Our mother ship, VMS Eve, will be flying from Spaceport America, New Mexico, today and another tomorrow.… To simulate the glide and approach phase of the land of SpaceShipTwo Unity. ” And unless something gets lost in the translation, that seems to mean they’ll be using the fully atmospheric VMS Eve to test how the VSS Unity, capable of landing in space, would land after visiting space.
It’s extremely curious, first of all, because the two planes don’t look alike or fly. It is therefore difficult to see one serving as a close proxy for the other. And secondly, because it was the spacecraft (Unity) that encountered engine issues in the last round of tests – not the mothership (Eve) – and therefore, it is the spacecraft. , not the mothership, which seems to need more testing. flying.
Either way, investors seem to view today’s news as progress some sort out, at least, and maybe as the first step towards Virgin Galactic trying to test VSS Unity again in the near future.
Once that happens and is successful, the company should be on track again to send Virgin Galactic founder Sir Richard Branson into space and later, allowing paying customers to get on board. In summary, today’s news might just be a small step into space, but at least it’s going in the right direction.
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