Virgin Galactic's next spaceflight test delayed due to New Mexico Covid-19 restrictions

KEY POINTS

• Virgin Galactic's stock dropped after the company said that it's next spaceflight test is now delayed due to new COVID-19 restrictions.
• "We will be minimizing our New Mexico operations to the greatest degree possible," Virgin Galactic CEO Michael Colglazier said in a statement.
• The space tourism company's next spaceflight test was scheduled for a launch window between Nov. 19 and Nov. 23 but is now delayed.

Virgin Galactic's carrier aircraft releases its spacecraft Unity during a glide flight test.

Virgin Galactic

Virgin Galactic's stock dropped after the company said on Monday that it's next spaceflight test is now delayed due to new COVID-19 restrictions implemented by New Mexico.

"We will be minimizing our New Mexico operations to the greatest degree possible. While these new restrictions cause us to adjust our flight schedule, we take this pause in stride and will be prepared to resume our pre-flight procedures and announce a new test flight window as soon as we can," Virgin Galactic CEO Michael Colglazier said in a statement.

While the company's manufacturing and development facilities are in California's Mojave Desert, its base of operations is at Spaceport America in New Mexico.

The space tourism company on Nov. 5 said that the next spaceflight test was scheduled for a launch window between Nov. 19 and Nov. 23. It is planned to be the first of two test spaceflights before Virgin Galactic flies founder Sir Richard Branson and then begins commercial operations.

Shares of Virgin Galactic fell as much as 10% in early trading from its previous close of $22.27.

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.