There was little doubt that Intuitive Machines (LUNR) launching its second lunar lander last week would bring turbulence to its stock.
The company didn’t disappoint — though investors probably wish it had.
Athena, the lunar lander, was launched atop a SpaceX Falcon 9 rocket on Feb. 27 as part of NASA’s Commercial Lunar Payload Services program.
But by March 7, the company confirmed that Athena had missed its target by 250 meters, tipped over on landing, and ran out of battery the next day — effectively cutting the mission short.
CEO Steve Altemus tried to put a positive spin on the outcome during a NASA press conference: “Any time that you ship a spacecraft to Florida for flight and end up a week later operating on the moon, I declare that a success.”
Investors weren’t buying it. LUNR stock plunged 20% on March 6 and another 22% on March 7, leaving the stock down nearly 60% year-to-date.
What’s next for Intuitive Machines?
Space stocks are a highly speculative yet promising sector with untapped potential in commercial space exploration and government contracts.
SpaceX has paved the way for privatized aerospace, proving there’s a viable market. But even the most successful space ventures suffer setbacks.
Meanwhile, Intuitive Machines is 0 for 2, with neither of its two lunar missions going through without issues.
Its first lander, Odysseus, also tipped over upon landing, sending LUNR stock crashing.
Despite these failures, NASA remains committed to working with private space firms under its Commercial Lunar Payload Services (CLPS) program.
“While we’re disappointed in the outcome of the IM-2 mission, we remain committed to supporting our commercial vendors as they navigate the very difficult task of landing and operating on the Moon,” said Joel Kearns, deputy associate administrator for Exploration at NASA.
He added: “Empowering American companies to deliver science and tech to the Moon on behalf of NASA both produces scientific results and continues development of a lunar economy.”
Whether Intuitive Machines remains one of those vendors after back-to-back failures is another question.
The company signed a five-year contract with NASA in September 2024 worth up to $4.82 billion, with an option for an additional five years. But investors will be watching closely to see if NASA sticks with Intuitive Machines or shifts focus elsewhere.
As Seeking Alpha analyst Joseph Parrish put it, this is “a test of the company’s ability to weather a major setback.”
All eyes are now on the management response, the impact on near-term contracts, and how much runway the company has left.
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