Virgin Galactic (SPCE) Surges After Getting FAA License to Fly People to Space; Jim Chanos Questions Spike Higher

June 25, 2021 9:16 AM EDT

U.S. spaceflight company Virgin Galactic Holdings, Inc. (NYSE: SPCE) gained 20% in pre-open trading Friday after the company said the Federal Aviation Administration (FAA) updated its commercial space transportation operator license to allow the company to fly customers to space.

Virgin also said it reviewed data gathered from its test flight that occurred on May 22 and confirmed the flight showed good performance against all objectives.

The new approval makes Virgin Galactic the first company to obtain a license by the FAA to fly customers to space.

“We’re incredibly pleased with the results of our most recent test flight, which achieved our stated flight test objectives. The flight performed flawlessly, and the results demonstrate the safety and elegance of our flight system, said Michael Colglazier, CEO of Virgin Galactic.

“Today’s approval by the FAA of our full commercial launch license, in conjunction with the success of our May 22 test flight, give us confidence as we proceed toward our first fully crewed test flight this summer.”

Hedge fund manager Jim Chanos also weighed in on the subject after Virgin obtained the license, questioning the surge higher.

“So Virgin Galactic was valued at $10 billion dollars yesterday because investors thought they WOULDN’T get FAA certification…?!,” he said in a tweet.

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