{"id":22332,"date":"2021-12-31T01:37:16","date_gmt":"2021-12-30T17:37:16","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/astra-space-could-face-a-class-action-lawsuit-for-misleading-investors\/"},"modified":"2021-12-31T01:37:16","modified_gmt":"2021-12-30T17:37:16","slug":"astra-space-could-face-a-class-action-lawsuit-for-misleading-investors","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/astra-space-could-face-a-class-action-lawsuit-for-misleading-investors\/","title":{"rendered":"Astra Space could face a class-action lawsuit for misleading investors"},"content":{"rendered":"
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The Rosen Law Firm has opened an investigation into Astra Space, Inc. [NASDAQ: ASTR] due to allegations that Astra presented misleading material to the public. Astra\u2019s stock price plummeted following the report by market analyst Kerrisdale Capital, a short seller of Astra Space. <\/p>\n

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Astra Space went public on the NASDAQ on June 30, 2021, and finished its day at $12.90 a share. Valued at $2 billion, Astra Space is working on its launch vehicle to carry payloads up to 500kg to orbit. Following its first successful launch to orbit, the company announced its first launch from Florida. Astra also has plans to build its own satellite constellation in the future. In the meantime, Kerrisdale Capital has published a report entitled \u201cAstra Space Inc (ASTR): Headed For Dis-Astra,\u201d which looks into Astra\u2019s claims and market predictions. From Kerrisdale Capital\u2019s standpoint, Astra faces massive obstacles to becoming a viable business and has nonsense launch projections.<\/p>\n

Kerrsidale Capital\u2019s Report<\/h2>\n

In its report, Kerrisdale Capital looks at Astra\u2019s past, current, and future projections. We\u2019re going to take a look at some executive summaries and break down what we can. It should be noted that I am not a Financial Advisor, and this is not financial advice. We recommend reading this report should you be interested in the full context.<\/p>\n

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Astra is falling behind its competitors.<\/strong> <\/strong>Multiple industry executives we interviewed, who routinely secure launch services for small satellite manufacturers on a global basis, agree that Astra\u2019s rocket dimensions and payload capacity are well below the \u201csweet spot\u201d of customer needs. Rocket Lab, Relativity, ABL, and Firefly all have plausible plans to produce 1,000kg+ rockets that will be entering the market in the near term; by contrast, Astra aspires to produce a 500kg rocket two years from now. Astra\u2019s attempt to catch up is self-evident. Shortly after its SPAC announcement, Astra publicly disclosed (without any credible technological explanation) an increase in the targeted capacity of its rockets; shortly thereafter, and surely to Astra\u2019s embarrassment, the public learned that Astra had entered into an agreement allowing it limited access to study one of its competitor\u2019s rocket engine IP in exchange for $30m.<\/p>\n<\/blockquote>\n

The agreement referred in the report is a deal Astra made with Firefly Aerospace. First reported by The Verge, this deal involves Firefly Aerospace giving Astra access to its IP for the Reaver rocket engine. The deal also involved Firefly sending Astra engines to inspect. This agreement came to light following Astra\u2019s infamous \u201cpowerslide\u201d launch, in which a Delphin rocket engine (developed by Astra) shut down shortly after liftoff. This launch was aborted early into flight. <\/p>\n

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