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Virgin Galactic Hits Financial Turbulence as Richard Branson Halts Funding

Dec 05, 2023 - gizmodo.com
Richard Branson has announced that he will stop funding Virgin Galactic due to post-pandemic financial constraints, causing the company's stock price to drop over 17%. This decision comes after the company laid off about 20% of its staff and announced an 18-month suspension of commercial flights. Despite these challenges, Virgin Galactic is focusing on the development of an upgraded spaceplane, Delta, set to debut in 2026.

Although Virgin Galactic has undertaken several space flights recently, the company's broader financial and operational issues have overshadowed these achievements. Despite selling over $1 billion in shares between 2020 and 2021, Virgin Group remains the second-largest stakeholder in Virgin Galactic. The company, founded in 2004, is seeking to establish a presence in the emerging space tourism market, but its path forward appears increasingly challenging.

Key takeaways:

  • Richard Branson has announced he will halt further financial contributions to Virgin Galactic, causing the company's stock price to drop by over 17%.
  • Virgin Galactic has recently faced several challenges, including layoffs and a suspension of commercial flights, and is now focusing on the development of an upgraded spaceplane, Delta.
  • Despite these challenges, Virgin Galactic's funding outlook suggests it has enough resources to continue until the planned 2026 introduction of the Delta vehicle.
  • Virgin Galactic, founded in 2004, is seeking to establish a presence in the emerging space tourism market, but its path forward appears increasingly challenging.
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