SPCE: Stock Down 70% in 2025 — But Settlement Over Misleading Spaceflight Tech Still Weighs

Court: E.D. New York

Case: 1:21-cv-03070

Virgin Galactic SPCE has suffered a 70% drop in 2025 amid ongoing financial, operational, and competitive challenges. While some may view it as a potential contrarian play, the risks remain elevated, compounded by a recent legal settlement over misleading statements about its spaceflight technology and safety readiness.

Key Performance Highlights

• Stock down 70% year-to-date with high volatility (beta 2.27)
• Cash reserves under strain with $1.1B reported in late 2023, risking runway before Delta Class revenue flights in 2026
• Operational delays and structural discrepancies in spacecraft engineering
• Competitive pressure from Blue Origin and SpaceX with stronger market positioning
• Strategic shift to quarterly flight cadence but analysts remain skeptical on profitability timeline

Timeline Overview

• Oct 2019: Promoted reverse merger as entry into commercial spaceline market, claiming readiness for passenger spaceflight
• Feb 2019: Marketed “successful” test flight as proof of readiness
• Aug 4, 2022: Delayed commercial flights to H1 2023, revealing differences between as-built ships and engineering drawings
• Aug 5, 2022: Analyst disclosed structural discrepancies, lowered price target from $8 to $7; SPCE fell 17.5%
• Following years: Stock fell over 85% from peak, erasing $13B in shareholder equity

Allegations Include

• Concealing that engineering drawings did not match as-built spacecraft
• Misrepresenting readiness of spaceflight system
• Issuing misleading commercial launch timelines

Investor Update

Virgin Galactic reached a settlement with investors alleging it misled the public about its spaceflight technology and safety readiness before launches like Unity 22, resolving claims tied to delays, discrepancies, and public misstatements.

You can check more information about it and file for a payout HERE.