Firefly Aerospace stock tanks 20% after test rocket explosion

Firefly Aviation After a test flight exploded on Monday, the stocks fell approximately 21%.

The explosion occurred at the first -stage test flight of the Alpha Flight 7 rocket in Briggs, Texas. update.

Firefly, “The appropriate security protocols were followed and all staff is safe.” “The company evaluates the effect on the stage test stand and no other facility was affected.”

The eight -year -old space technology company is competing in a more crowded area, dominated by billionaire -supported initiatives such as Elon Musk’s SpaceX for agreements with NASA and leading government contractors.

Appetite is strong. Firefly has established a partnership with NASA over the years, Lockheed Martin And L3harris technologies. He won recently 177 million dollar contract NASA and A 50 million dollars Investment Northrop GRUMMAN.

During the public offering last month, Firefly was the third important field technology to be released in 2025 after Voyager Technologies and Karman Holdings.

The high investor interest collected $ 868 million with a value of $ 6.3 billion. Stocks increased by 34% on the opening day. The stock has been withdrawn 50%since then.

“Everything is about execution,” CEO Jason Kim told CNBC to “Squawk Box” on IPO Day.

He said the company is laser -oriented to alpha rockets to meet increasing commercial and national security demands.

Firefly makes rockets, space tugboats and moon descents. Earlier this year, Blue ghost Lunar Lander successfully landed.

Historically, rocket tests in the sector were not always a smooth journey. Firefly’s sixth alpha rocket failed in April. Last month, Federal Aviation Administration cleaned To continue to test Firefly Alfa rockets. SpaceX experienced setbacks, including the launch ramp explosion this summer.

Firefly, in the task update, “We learn from every test to improve our designs and create a more reliable system.”