Delta-Class Factory Tours Begin as Virgin Galactic Stock Plunges 72% From June High

The gap between Virgin Galactic’s long-term ambitions and its current market reality has never been wider. Last week the company opened its Mesa, California factory doors to future astronauts, showcasing the Delta-class spacecraft that is supposed to revive the business. Meanwhile, the stock has been savaged — closing at $2.50, down nearly 30% in seven days and a full 72% below the $8.90 high reached as recently as early June.

The cause is clear. SpaceX’s blockbuster initial public offering has sucked capital out of smaller space stocks across the board. The Procure Space ETF (UFO) is on track for its worst month since March 2020. Intuitive Machines and Rocket Lab have both suffered double-digit percentage losses in June. For Virgin Galactic, the pain is amplified because the company currently generates almost no revenue. First-quarter sales totalled just $0.23 million, a figure that underscores the perilous transition between the retired VSS Unity and the Delta-class fleet.

That fleet is now the single most important catalyst for the stock. Each Delta-class vehicle will carry six passengers — two more than VSS Unity — and is designed for high-frequency operations: two flights per week and up to 500 missions over its lifetime. The manufacturing effort relies on specialized partners: Bell Textron is providing the suspension system for re-entry, while Qarbon Aerospace builds the lightweight fuselage and wings. To prepare crews for the shift in flight profile, Virgin Galactic has reactivated VSS Unity, which shares the same glide characteristics and landing approach as the new Delta ships.

Should investors sell immediately? Or is it worth buying Virgin Galactic?

The test schedule is tight. Uncrewed glide tests — the unpowered phase that precedes any rocket-powered flight — are expected to start in the third quarter of 2026. If that goes to plan, the first commercial Delta-class mission would launch in the fourth quarter of 2026. The company has already released 50 expedition seats at $750,000 each, a price increase meant to conserve cash. About 650 customers remain on the waiting list.

That cash is flowing out at an alarming rate. The net loss for the first quarter of 2026 was $65 million, with free cash flow of negative $93 million. Virgin Galactic expects a similar burn in the second quarter: between negative $87 million and negative $92 million. As of March 31, the company had $251 million in liquid assets. It has used a stock placement and senior notes to buy back roughly $355 million (face value) of its convertible bonds, leaving about $273 million in outstanding debt. At the current pace, the cash runway extends only a few more quarters — everything depends on a smooth glide-test campaign this summer.

The market’s skepticism is quantifiable. About 35.79% of Virgin Galactic’s free float is sold short, an exceptionally high ratio that signals deep distrust of the business model during this cash-burning interregnum. The stock is trading roughly 26% below its 50-day moving average of $3.36, and the annualized 30-day volatility has hit nearly 240% — a level that makes normal valuation analysis almost meaningless. Analysts point to a classic liquidity effect: as institutional money rotates into the new sector heavyweight, the smaller names get hammered regardless of individual progress.

The glide tests in the coming months will therefore serve as a binary event. A smooth set of unpowered flights would keep the Delta-class on track for a commercial debut by year-end. Any delay or technical hiccup, however, would strain the already thin cash position and validate the short sellers’ thesis. For now, Virgin Galactic’s survival is a race between the factory floor and the balance sheet.

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Virgin Galactic Stock: New Analysis - 26 June

Fresh Virgin Galactic information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

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