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$1,000 Will Now Reserve You a Trip to Space on Virgin Galactic

By Rich Smith - Feb 25, 2020 at 5:10PM

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An actual ticket could cost you another $249,000.

Virgin Galactic (SPCE -4.82%) aims to create an entirely new form of entertainment for well-heeled tourists: Space tourism.

It's already shaken up the stock market, more than quadrupling its share price in the past three months. Yesterday, Virgin Galactic was even one of only a handful of stocks not to suffer dramatic declines in the midst of the coronavirus scare, actually rising 1.2%.

Virgin Galactic SpaceShipTwo rocketing upwards

Image source: Virgin Galactic.

And now, Virgin Galactic is getting ready to start the next phase of its growth.

On Tuesday, right after reporting earnings (or rather, a lack thereof) for its fiscal fourth quarter, Virgin Galactic announced a new "One Small Step" initiative. Since halting ticket sales for flights aboard its SpaceShipTwo spaceplane in December 2018, with "more than 600 firm reservations" in hand, Virgin hasn't sold a single new ticket -- of its own volition. It has, however, collected 7,957 online reservation registrations from persons interested in flying to space.  

Under One Small Step, the company intends to restart ticket sales. As a first step, beginning tomorrow, Wednesday, February 26, Virgin Galactic will permit "future flyers" to pay a $1,000 refundable deposit to register to buy a ticket, "and be front of line for firm seat reservations, once they become available."

Mind you, Virgin Galactic didn't say when those tickets will actually become available, nor when, once a ticket is purchased, a flyer might actually fly. For that matter ... Virgin Galactic also didn't say how much tickets will cost. (But you can be certain it will be more than the $1,000 deposit, and probably closer to $250,000).

None of the above has scared off customers (or investors) before, however. It probably won't this time, either.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of Virgin Galactic Holdings Inc. The Motley Fool has a disclosure policy.

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