Congratulations to Virgin Galactic for successfully launching their final test flight from Spaceport America today. Shockingly, as noted in the CNBC article and below, the Company’s stock plummeted by more than 8 percent on the news.
One issue MAY be this Motley Fool article (released today) which highlights the precarious condition of Virgin Galactic’s finances and outlines the tremendous pressure facing the company to get its commercial operations going at a rapid pace this summer.
Here is one particularly concerning statement from the story,
Thus, it seems most likely Virgin Galactic will in fact burn through somewhere between $370 million and $400 million in cash through the end of 2023, leaving it with at most $504 million at the start of next year. If the company manages to fly more frequently than once every other week next year, that might be enough cash to last Virgin Galactic through the end of 2024. But if it can’t, it won’t.