Here’s why Astra is down 20% on Monday

on Aug 30, 2021
Updated: Jun 24, 2022
  • Astra’s failed weekend rocket launch attempt brought down the stock by over 20%.
  • The cause of the failed rocket launch is believed to be an issue with liftoff.
  • With enough data in hand, an investigation of the cause of the issue is underway.

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Rocket manufacturing company Astra Space Inc (NASDAQ: ASTR) is back in the news. The ambitious rocket launch came down as there was an issue with liftoff. Concurrently, Astra’s stock also came tumbling down on Monday. The stock fell over 20% following the weekend rocket launch failure.

Astra is yet to launch a rocket in orbit

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According to the chain of events, it is interesting to note that the company’s LV0006 rocket, a moment after getting separated from the ground, tilted and slid sideways. The incident took place in Alaska. One of the five engines shut down. However, the rocket did not crash instantaneously. After recovering from the incident, the rocket continued to accelerate for another two minutes.

The launch safety team shut down the remaining four engines of the rocket, after which it was terminated. After recovering from the tilt that the LV0006 experienced while liftoff, the rocket managed to climb. It is learned that the rocket touched an altitude of about 164,000 feet or 50 kilometers. However, according to sources, the company is yet to make a debut rocket launch to orbit.

Cause of the issue under investigation

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The rocket builder is investigating what caused the issue. Astra CEO Chris Kemp told CNBC that the company has collected and it has in its possession sufficient data from the flight. The CEO added that the company is in the process of reviewing it.

Measuring 43 feet tall, the LV0006 falls in the small-rocket category. Rocket LV0007 will be built with necessary changes incorporated. The company does not have a schedule in place for its next launch attempt. However, Astra targets to launch many small rockets. The company aims to launch one rocket a day by 2025 and is dropping its estimated $2.5 million price point even more.

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Astra shares fell post the rocket launch failure

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As news of the rocket failure launch attempt broke, shares of the rocket builder fell as much as 22%, from its previous close of $11.67. LV0006 is the company’s debut commercial mission attempt in partnership with the U.S. Space Force. The launch aimed to test the payload under its Space Test Program.

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