Intuitive Machines Set to Lose Moon Landing Gains on Fresh Drop

(Bloomberg) -- Intuitive Machines Inc. is on course to lose half its market value as its lander tipped on its side when touching down on the moon, putting further pressure on the high-flying stock.

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The spacecraft company’s shares slid as much as 30% in US premarket trading on Tuesday, after tumbling 34% the previous day in heavy trading. Optimism over the startup’s moon landing has fueled a breakneck rally in the stock, which was up nearly 300% on the year as it reached a peak last week.

The Houston-based company said Monday that its vehicle, called Odysseus, continues to communicate with flight controllers from the moon’s surface and sent some images of its descent. The landing, which took place on Friday, was lauded as the first by a private-sector company to reach the moon intact.

Cantor Fitzgerald said that the market was overreacting to the tipping and highlighted that its successful soft-landing validates the firm’s technology, which could increase contract awards in the future.

“While the sideways landing is not ideal, our view is that it does not have a material impact on the mission and its success since most of the revenues from this mission have already been recognized,” Cantor Fitzgerald analyst Andres Sheppard said in a note.

--With assistance from Janet Freund.

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