Investors swatted Firefly Aerospace shares Tuesday after a section of the company's Alpha rocket exploded during a preflight test on Monday afternoon. Aerospace peer Draganfly rallied and broke out after landing a drone contract with the U.S. Army.
Texas-based Firefly Aerospace on Monday was conducting tests ahead of its seventh flight for its Alpha rocket when a booster exploded.
"During testing at Firefly's facility in Briggs, Texas, the first stage of Firefly's Alpha Flight 7 rocket experienced an event that resulted in a loss of the stage," the company wrote on its website. "Proper safety protocols were followed, and all personnel are safe. The company is assessing the impact to its stage test stand, and no other facilities were impacted."
The seventh Alpha flight was intended to be a dedicated commercial launch. Firefly expected to launch in Q4 from the Vandenberg Space Force Base in California. However, the flight has most likely been delayed.
"We learn from each test to improve our designs and build a more reliable system," Firefly wrote. "We will share more information on the path forward at a later date."
Prior Missions
It's another setback for Firefly, which suffered a failure during its Alpha launch in April, according to Space.com. During that mission, the first-stage booster broke apart shortly after separation from the upper stage. That issue damaged the upper stage's engine nozzle, which compromised thrust and led to the loss of Lockheed Martin's satellite payload.
Firefly in March successfully landed its Blue Ghost lander on the Moon, which marked the first commercial moon landing, according to the company. The lander launched in January and completed 100% of its missions during the two-week surface operations.
Firefly has a backlog worth $1.1 billion and is part of NASA's Commercial Lunar Payload Services program, according to Barron's. In July, Firefly received a $176.7 million NASA contract to deliver five NASA-sponsored payloads to the Moon in 2029.
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Firefly Aerospace Stock
FLY stock unraveled almost 21% Tuesday to drop to record lows.
Firefly Aerospace launched on the Nasdaq in August and opened at 70 per share, well above its offering price of 45 set by the company.
However, FLY stock has retreated 35% in September.
Draganfly Lands Drone Contract
Canada-based Draganfly on Tuesday announced that it was selected by the U.S. Army to provide Flex First Person View (FPV) drones
Under the initial order, Draganfly will deliver Flex FPV drones that are designed for high-performance operations and help establish on-site manufacturing within overseas U.S. Forces facilities to accelerate deployment and reduce the supply-chain timelines.
Draganfly will also provide flight and manufacturing training that will enable the Army to sustain operations, and will manage logistics to ensure secure supply chain practices.
Draganfly did not provide financial details about the contract in the release.
The company's Flex FPV System comes in three sizes, capable of carrying payloads between 1.2 pounds and 6.6 pounds with a top speed of 90 miles per hour.
Draganfly Stock
Draganfly stock soared 17% Tuesday, scoring a breakaway gap above a 7.30 buy point for an 11-week cup base.
DPRO stock has rallied nearly 103% this year.
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