TAMPA, Fla. — AST SpaceMobile’s stocks dropped significantly after the company revealed that its first commercial satellites won't be ready for launch until at least July, resulting from the recent production delay.
The company announced the delay in its earnings report on April 1 after the close of trading on the Nasdaq stock exchange, causing the shares to fall by over 23% the next day to $2.01.
SpaceX was scheduled to launch AST SpaceMobile’s initial five 1,500-kilogram Block 1 BlueBird satellites using a Falcon 9 in 2023, but confronted supply chain issues, leading to delays.
The launch was pushed to the first quarter of 2024, then to the second quarter, and now AST SpaceMobile CEO Abel Avellan stated that the satellites will not reach their launch site until July or August.
Avellan informed investors on April 1 that production was slowed down largely due to challenges faced by two suppliers, resulting in delays in integration and testing.
In particular, he mentioned that the Texas-based company encountered manufacturing obstacles for components known as Microns, which are panels featuring solar cells on one side for power and antennas for connectivity on the other.
“To expedite the production of our upcoming satellites and reduce reliance on external suppliers, we obtained a license to produce one of the components and replaced the other supplier with our own intellectual property and design,” Avellan added.
AST SpaceMobile also secured a contract to launch its first Block 2 BlueBird satellite between December and March.
The initial Block 2 BlueBirds will have a 223-square-meter antenna, providing ten times more capacity than the Block 1 BlueBirds, which are approximately 64 square meters, similar to the BlueWalker-3 demo satellite launched two years ago.
AST SpaceMobile stated that its first six commercial satellites have been fully funded, following an investment announced earlier this year from companies including AT&T, which plans to utilize the low Earth orbit network to fill coverage gaps in the United States.
The company began trading on Nasdaq in 2021 after merging with a special purpose acquisition company (SPAC), a shell company that lists on a stock exchange with capital from public investors seeking an investment opportunity.
The deal raised approximately $417 million for AST SpaceMobile, but the company has been depleting its funds due to production delays and cost overruns, leading to a decline in share value after the first trading day closing at $11.81.
AST SpaceMobile also revealed that it has received three non-binding letters of interest for export credit agency funding, as it aims to deploy up to 45 satellites by the end of 2026.
