Shares of Virgin Galactic took a nosedive on Friday after Chairman Chamath Palihapitiya cashed in on his personal commitment for approximately $ 213 million.
Shares of Richard Branson’s space exploration company plunged 21 percent to a low of $ 23.95 after Palihapitiya, a prominent venture capitalist, revealed he dumped the last 6.2 million shares in his personal portfolio.
The stock recently fell about 13 percent to $ 26.45 from 2:10 pm
Virgin Galactic’s stock price more than doubled at the start of the year, but has nearly wiped out those gains since Feb. 11.
Palihapitiya previously reduced its stake in the company by 3.8 million shares in December to free cash for new projects. He told Business Insider that the proceeds from the latest sale will go “into a major investment I am making in the fight against climate change.”
“The details of this investment will be made public in the coming months,” the Social Capital chief said in a statement. “I remain committed to the Virgin Galactic team, mission and prospects.”
Palihapitiya and business partner Ian Osborne still indirectly own approximately 16 million shares in the spaceship builder through an investment firm called SCH Sponsor Corp. The pair helped bring Virgin Galactic public in 2019 by merging it with their dedicated takeover company, Social Capital Hedosophia.
Virgin Galactic completed its first rocket-powered flight from its New Mexico spaceport in December and plans to eventually ship paying customers into space.
More than 600 people have bought tickets for flights where they can see the earth and experience weightlessness.
With pole wires