Firefly 20% aerospace action tanks after the explosion of test rockets

Firefly Aerospace The shares sank almost 21% after its rocket exploded during a ground test on Monday.

The explosion occurred during a first scene test of the Alpha Flight 7 rocket of satellite launching in its installation in Briggs, Texas, wrote Firefly in an update.

“Appropriate security protocols have been followed and all the staff are safe,” wrote Firefly. “The company assesses the impact on its test stand on stage, and no other installation has been affected.”

The eight -year -old space technology company participates in an increasingly congested space dominated by companies supported by billionaires such as Elon Musk SpaceX for agreements with NASA and eminent government entrepreneurs.

The appetite is strong. Over the years, Firefly has teamed up with NASA, Lockheed Martin And L3harris technologies. He recently won a $ 177 million contract with NASA and an investment of $ 50 million Northrop Grumman.

At the time of its first public call to public last month, Firefly was the third important space technology to make its debut in 2025 after traveling Technologies and Karman Holdings.

The high interest of investors have led to a size offer, an initial stock sale collecting $ 868 million to an assessment of $ 6.3 billion. The shares jumped 34% on the day of the opening to end at more than $ 60. The stock has since backed 50%.

“It’s all about execution,” CEO Jason Kim told CNBC’s “Squawk Box” on the day of the IPO.

He said the company focused on laser on its Alpha rockets to respond to increased commercial and national security requests.

Firefly manufactures rockets, space tugs and lunar landing. Earlier this year, his Lander Blue Ghost Lunar managed to land on the moon.

Rocket tests in the sector, historically, have not always been gently driving. Firefly’s sixth alpha rocket failed in April. Last month, the Federal Aviation Administration cleaned Firefly to continue testing its alpha rockets. SpaceX also underwent misadventures, including an explosion of launching ramp this summer.

“We learn from each test to improve our conceptions and build a more reliable system,” wrote Firefly in its mission update.

Correction: This story has been updated to reflect that the explosion occurred during a ground test. A previous version of this story incorrectly stated the nature of the test.