Virgin Galactic’s shares plunged on Friday after President Chamath Palihapitiya redeemed his personal stake for about $ 213 million.
Shares in Richard Branson’s space exploration company fell 21% to $ 23.95 after Palihapitiya, a prominent venture capitalist, revealed that he had disposed of the last 6.2 million shares in his personal portfolio.
The stock recently fell about 13 percent, to $ 26.45, at 2:10 pm.
Virgin Galactic’s stock price more than doubled at the beginning of the year, but has almost wiped out those gains since February 11.
Palihapitiya previously reduced its stake in the company by 3.8 million shares in December to release money for new projects. He told Business Insider that the profits from the last sale will “go to a major investment that I am making in combating climate change”.
“The details of this investment will be released in the coming months,” the head of Social Capital told the agency in a statement. “I remain as dedicated as ever to Virgin Galactic’s team, mission and perspectives.”
Palihapitiya and business partner Ian Osborne still indirectly own about 16 million shares of the spaceship builder through an investment company called SCH Sponsor Corp. The duo helped to open Virgin Galactic’s capital in 2019 by merging it with its special purpose acquisition company, Social Capital Hedosophia.
Virgin Galactic completed its first rocket flight out of its New Mexico spaceport in December and plans to transport paying customers into space.
More than 600 people have purchased tickets for flights on which they can see the Earth and feel weightless.
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