Virgin Galactic stocks tank after chairman cashes out stakes

CEO Chamath Palihapitiya said in a statement that he had sold off his personal investment worth about $200 million, adding that he is directing the funds towards fighting climate change. "Details will be made public in the next few months," the statement said.

Shares tumbled by 14% on Friday after news broke out. Add to the fall the overall sell off in the market and Virgin Galactic shed almost one-third of its  value. In early February Virgin Galactic stocks were trading at almost $60 but on Friday there were trading at close to $26, a steep fall. 

Virgin Galactic was the favourite of stock investors looking to enter early into space tourism, boosted by the company's announcement that it could begin space flights as early as 2018. However, much after that date had passed, in its last earnings report the company further disappointed investors by claiming it would begin commercial space flights by 2022 at the earliest.