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Virgin Galactic (SPCE) Stock Down 10% on Monday while Elon Musk Worries about SpaceX

Following the beginning of the oil price war, crypto and stock markets have started a downward movement. Bitcoin and other cryptos’ prices rapidly dropped, the market capitalization also tanked. Stocks of tech companies have suffered as well. We have already reported on Tesla Inc (NASDAQ: TSLA) stock that closed at $608 on Monday (or 13.57% down). Now its time to look at the stock performance of Tesla’s competitor and SpaceX rival Virgin Galactic Holdings Inc (NYSE: SPCE) stock.

Notably, Virgin Galactic (SPCE) stock does not differ from other tech shares in yielding to the influence of negative global events. Coronavirus, oil price battles, general bearish mood — all together, these factors led to a drop in tech shares. Virgin Galactic (SPCE) stock lost 10.29% on Monday, closing at $19.44. However, in the premarket, it started gaining again. Now it is 10.55% up and has reached $21.49.

In February, SPCE stock was performing quite well, until the company published its Q4 2019 results. Following the report, Virgin Galactic stock dropped over 7% in the pre-market. On March 4, it started recovering and closed almost 2% up. Yesterday, it suffered a new plunge.

Some market analysts believe that SPCE stock is just a bubble and the company is overvalued, with the market worth around $4.72B and $3.80M in sales. Others are sure that Virgin Galactic is the major competitor to SpaceX in the space tourism industry. Both the companies are working on commercial spacecraft and aim to provide spaceflights to space tourists.

Elon Musk‘s SpaceX designs, manufactures and launches advanced rockets and spacecraft. It aims to revolutionize space technology, ultimately enabling people to live on other planets. In particular, the company targets getting to Mars. However, as was concluded from Musk’s speech at Satellite 2020 conference in Washington, the chances to get there are not as high as the company has been convincing us.

Elon Musk stated:

“If we don’t improve our pace of progress, I’m definitely going to be dead before we go to Mars. If it’s taken us 18 years just to get ready to do the first people to orbit, we’ve got to improve our rate of innovation or, based on past trends, I am definitely going to be dead before Mars.”

In January, Musk wrote that he aims to launch each of SpaceX’s reusable Starship rockets about three times per day while carrying a 100-ton payload on each flight. At least 1,000 flights per year with over 100 tons of cargo on each flight is the ultimate goal.

According to Musk, he plans to send a SpaceX rocket to Mars, with cargo only, by 2022. More cargo and crew will be sent in 2024. By 2050, Musk is going to a million people there.

Virgin Galactic (SPCE) Stock Down 10% on Monday while Elon Musk Worries about SpaceX

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