Virgin Galactic (SPCE) stock soars 30% on ticket sales for space trip

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 Virgin Galactic (SPCE) stock soars 30% on ticket sales for space trip
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Highlights

  • Virgin Galactic said it would start selling tickets for space trips on Wednesday.

  • Each ticket costs US$450,000, the same as before.
     
  • The company also plans to make changes to its logo.

The Virgin Galactic Holdings, Inc. (NYSE: SPCE) stock jumped over 33% on Tuesday afternoon after announcing to resume ticket sales for space trips.

The stock was up 33.41% to US$10.8592 at 2:58 pm ET, the biggest jump in seven months. The company said it will resume ticket sales for its space trip on Wednesday.

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Each ticket costs US$450,000. The travelers must also deposit a sum of US$150,000, of which US$25,000 is non-refundable. The company has kept the ticket price the same as last year. 

Virgin Galactic offers three types of bookings for its 90-minute spaceflight: reservation for a single-seat, package seats for couples, friends, etc., and booking for an entire flight. The company said customers could also experience "several minutes of out-of-seat weightlessness".

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Virgin Galactic CEO Michael Colglazier said the company plans to have the first 1,000 customers on board at the beginning of the commercial service later this year. He added that it would likely provide a "strong foundation" as it starts its regular operations.

The company needed a major announcement to lift the stock, which declined sharply in recent months. The SPCE stock tumbled over 83% in the past 12 months.

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After Virgin Galactic founder Richard Branson took a flight last July, the company said it would delay its commercial trips to upgrade the service. In addition, it faced regulatory hurdles that briefly grounded its flights.

The company had around 600 reservations for space trips till 2020. These tickets were sold between US$200,000 and US$250,000 each. However, in August last year, the company raised the ticket price to US$450,000 each. As of November, it sold around 100 additional tickets.

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Virgin Galactic (SPCE) stock rallies after announcing its plan to open spaceflight ticket sales

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Bottomline

Virgin Galactic said it is making changes in its logo to add a purple outline of its spaceflight. Founder Richard Branson has sold over US$1.25 billion in stocks since the company went public in 2019. Virgin Galactic has a market cap of around US$2.76 billion.

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