Firefly Aerospace Stock Tanks 20% after test rocket explosion
A model of the Firefly Aerospace Blue Ghost Lander during the company’s first public offer at the Nasdaq markets in New York on August 7, 2025.
Michael Nagle | Bloomberg | Getty pictures
Firefly Aerospace The shares sank almost 21%after their rocket exploded on Monday during a test flight.
The explosion occurred during a test flight of the satellite start-alpha-flight 7 rocket in the facility in Briggs, Texas, wrote in an update.
“The right security protocols were followed and all employees are safe,” wrote Firefly. “The company evaluates the effects on its stage of the stage and no other institutions were affected.”
The eight-year space technology company competes in an increasingly overcrowded room that is dominated by billionaire-supported companies such as Elon Musk’s SpaceX for business with NASA and prominent government companies.
Appetite is strong. Over the years, Firefly has teamed up with NASA, Lockheed Martin And L3Harris Technologies. A contract of 177 million US dollars with NASA and an investment of 50 million US dollars recently received Northrop Grumman.
At the time of his initial public offer in the last month, Firefly was the third significant space technology, which, according to Voyager technologies and Karman Holdings in 2025.
High investor interest rates led to an upsized offer, with an initial sales sale of 868 million US dollars collecting with a rating of 6.3 billion US dollars. The stocks rose by 34%on the opening day to close more than 60 US dollars. Since then, the share has withdrawn 50%.
“It’s all about execution,” CEO Jason Kim told CNBCS “Squawk Box” on the IPO day.
He said the company was laser-oriented in its alpha rockets in order to meet the requirements for increased commercial and national security requirements.
Firefly makes rockets, room tractors and moonlanders. At the beginning of this year, his Blue Ghost Moon Lander successfully landed on the moon.
Historically, rocket tests in the industry were not always a smooth journey. Firefly’s sixth alpha rocket failed in April. Last month, the Federal Aviation Administration Firefly solved to test its alpha rockets further. SpaceX has also suffered breakdowns, including an explosion of the start pad this summer.
“We learn from every test to improve our designs and create a more reliable system,” wrote Firefly in his missions update.
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