In 2021, Governor Michelle Lujan Grisham stated, “How Richard Branson and I feel about Virgin Galactic successfully going into space from Spaceport America in New Mexico.” And Virgin Galactic stock hit the stratosphere.
Looking at the three I wonder if they were thinking. Richard Branson, I made it into space first and I can sell my stock and get out. Bill Richardson, I may not have made it into the White House, but at least I helped Richard make it into space. Michelle Lujan Grisham, time to buy stock? By the end of the year Branson sold all his stock in Virgin Galactic. It was Richardson’s last hurrah. Lujan Grisham coasted to reelection. Virgin Galactic and the others soon discovered, little can withstand time and gravity.
In July of 2022, Virgin Galactic announced they were breaking ground on their new 150,000 sqft spaceship manufacturing facility at the Phoenix-Mesa Gateway airport that would be completed in 2023. The expected new spaceships would begin traveling to space, generating payload revenue by 2025. However, in 2023, a visit to the airport revealed a different story: Virgin Galactic was merely renting new hangar space, not building a new manufacturing facility, which was not 150,000 sqft. Their 2023 fourth-quarter report claims the new facility will be operational by mid-2024.
In July 2022, Virgin Galactic announced that Aurora (a Boeing subsidiary) would build its new carrier aircraft and expected the first aircraft to enter service in 2025. I called Aurora prior to publishing my November 2023 article; however, they did not provide information on the progress of designing and building the new carrier aircraft. It was reported nationally that Virgin Galactic and Aurora are suing each other for breach of contract. It appears communications have broken down, and payments were missed during the early design phase. Then, who knows when the design will be completed, let alone when manufacturing will commence?
What I see as Virgin Galactic's challenges are that the existing space plane and carrier aircraft are getting old and are either past or quickly approaching “too old and tired to fly,” which is why Virgin Galactic is expecting to cease flights in the middle of this year. Virgin Galactic’s new spaceship manufacturing facility is behind schedule, and it is doubtful that new spaceships will enter service before 2028. With Aurora and Virgin Galactic suing each other, it will take a lot for the two sides to come back together so they can continue or for Virgin Galactic to find a new carrier aircraft manufacturer. It is doubtful that new carrier aircraft will enter service before 2028. Virgin Galactic has $892 million in cash, burning through cash at about $400 million per year, and sold $485 million in stock last year (how long can that last?). It is reported that $418 million in debt is maturing in 2027.
Virgin Galactic has $985 million in cash and loses approximately $400 million annually. Their $400 million loan is due in 2027, and there is no revenue stream until their new spaceships and carrier aircraft enter service in 2028 or beyond. My two questions are: Can Virgin Galactic continue to sell $400 million in stock every year until it achieves profitability? And how much Virgin Galactic stock has Santa Fe Democrats purchased with our $40 billing investment funds?
In 2009, the New York Attorney General discovered that New Mexico’s public employee pension funds lost $90 million with a Chicago Investment company. Richardson’s presidential campaign and associated PAC received contributions but were left unscathed.
In 2024, the New York Attorney General prosecuted President Trump for inflating his assets' worth despite lenders losing no money.
How about the New York Attorney General investigating what happened to the billions invested in Virgin Galactic? Now, there is a crime.
Update 04.20.2024:
Virgin Galactic stock (SPCE) has closed under $1.00 per share for two consecutive days since the article was published. According to the NYSE standard, a stock will be delisted if it closes under $1.00 per share for thirty consecutive days.
Virgin Galactic is proposing to raise the stock price at the next shareholder meeting by combining two shares into one or twenty shares into one.
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