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Intuitive Machines shares soar after successful moon landing

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Intuitive Machines shares soar after successful moon landing
© Reuters. Intuitive Machines’ Odysseus spacecraft passes over the near side of the Moon following lunar orbit insertion on February 21, 2024, in this handout image released February 22, 2024. Intuitive Machines/Handout via REUTERS THIS IMAGE HAS BEEN SUPPLIED

By Akash Sriram, Harshita Mary Varghese and Joey Roulette

(Reuters) – Shares of Intuitive Machines soared 33% on Friday as the company became the first private firm to land a spacecraft on the moon, heralding an era of more such missions for space exploration.

The lander is “alive and well” as flight controllers extract the first batches of scientific data, Intuitive Machines said in its latest update.

The landing, the first U.S. touchdown on the lunar surface in more than half a century, put the space exploration company on track to waltz past $1 billion in market value.

More than 56 million shares exchanged hands in two hours after the opening bell. Earlier this week, the stock had seen the highest trading volume of about 64 million shares.

“This is a major achievement that should help boost awareness and credibility for the entire industry and companies like Rocket Lab, among others, will benefit from this,” said Andres Sheppard, senior analyst at Cantor Fitzgerald, which was an investment banking partner for Intuitive Machines.

Company executives and NASA officials have scheduled a news conference to discuss the landing and its upcoming science objectives at 5 p.m. ET (2200 GMT).

Shares of fellow space firms Astra Space, Satellogic and RedWire gained between 2.1% and 4.8%.

The Texas-based company’s lunar lander, dubbed “Odysseus”, touched down at the Malapert A crater, about 300 km from the moon’s south pole on Thursday.

It was sent to the moon last Thursday using a Falcon 9 rocket launched by Elon Musk’s SpaceX from NASA’s Kennedy Space Center in Cape Canaveral in Florida.

The landing represented the first controlled descent to the lunar surface by a U.S. spacecraft since Apollo 17 in 1972, when NASA’s last crewed mission docked on the moon with astronauts Gene Cernan and Harrison Schmitt.

“Congrats on landing on the moon!” Musk said in a post on X, soon after Intuitive said Odysseus was upright and starting to send data.

The company, co-founded in 2013 by serial space industry investor Kam Ghaffarian and NASA veterans Stephen Altemus and Tim Crain, is awaiting first images from the lunar surface.

The landing could open the doors to investments and government contracts, helping space companies ride out what has been a tough period of funding due to an uncertain economy.

“The technical acumen demonstrated today puts Intuitive Machines into a very exclusive club of space technology companies and government services contractors that can be relied upon to carry out the most demanding missions for NASA, DoD and other agencies,” Canaccord Genuity analyst Austin Moeller said.

The brokerage more than doubled its price target to $14, betting on the chances of the company winning high-revenue growth contracts, including from the government.

Intuitive Machines spent roughly $100 million developing its Odysseus lander, CEO Altemus told Reuters last year.

“We had to build an entire lunar program, not just a lander,” he said.

The company’s lander development also had $118 million in NASA funds under the agency’s Commercial Lunar Payload Services (CLPS) program, an effort to spur private development of moon landers that can ship cargo at lower costs than the U.S. space agency’s traditional method of building and launching those lunar vehicles itself.

Privately held Astrobotic made the first moonshot attempt under the CLPS program last month but a propulsion leak doomed the mission. Texas-based Firefly Space, backed by private equity firm AE Industrial Partners, is expected to send its Blue Ghost lander to the moon later this year.

Shares of Intuitive Machines, which fell for two straight sessions before the landing, were among the top trending stocks on retail trader platform Stocktwits on Friday.

More shares traded in February – exceeding 200 million – than in the previous two years combined, according to LSEG data.

Still, with just 17.9 million shares, or less than 20% of the company’s outstanding shares, as free float, the stock is susceptible to outsized moves.

Ghaffarian, who is also the co-founder of Axiom Space, is on the board of other space organizations and has held numerous technical and management positions at Lockheed Martin (NYSE:), Ford (NYSE:) Aerospace and Loral.

CEO Altemus joined NASA’s Kennedy Space Center and the shuttle program in 1989, where he held several positions working in launch and landing activities.

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Palantir, Anduril join forces with tech groups to bid for Pentagon contracts, FT reports

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(Reuters) – Data analytics firm Palantir Technologies (NASDAQ:) and defense tech company Anduril Industries are in talks with about a dozen competitors to form a consortium that will jointly bid for U.S. government work, the Financial Times reported on Sunday.

The consortium, which could announce agreements with other tech groups as early as January, is expected to include SpaceX, OpenAI, autonomous shipbuilder Saronic and artificial intelligence data group Scale AI, the newspaper said, citing several people with knowledge of the matter.

“We are working together to provide a new generation of defence contractors,” a person involved in developing the group told the newspaper.

The consortium will bring together the heft of some of Silicon Valley’s most valuable companies and will leverage their products to provide a more efficient way of supplying the U.S. government with cutting-edge defence and weapons capabilities, the newspaper added.

Palantir, Anduril, OpenAI, Scale AI and Saronic did not immediately respond to a Reuters request for comment. SpaceX could not be immediately reached for a comment.

Reuters reported earlier this month that President-elect Donald Trump’s planned U.S. government efficiency drive involving Elon Musk could lead to more joint projects between big defense contractors and smaller tech firms in areas such as artificial intelligence, drones and uncrewed submarines.

Musk, who was named as a co-leader of a government efficiency initiative in the incoming government, has indicated that Pentagon spending and priorities will be a target of the efficiency push, spreading anxiety at defense heavyweights such as Boeing (NYSE:) , Northrop Grumman (NYSE:) , Lockheed Martin (NYSE:) and General Dynamics (NYSE:) .

Musk and many small defense tech firms have been aligned in criticizing legacy defense programs like Lockheed Martin’s F-35 fighter jet while calling for mass production of cheaper AI-powered drones, missiles and submarines.

Such views have given major defense contractors more incentive to partner with emerging defense technology players in these areas.

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Weakened Iran could pursue nuclear weapon, White House’s Sullivan says

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By Simon Lewis (JO:)

(Reuters) -The Biden administration is concerned that a weakened Iran could build a nuclear weapon, White House National Security Adviser Jake Sullivan said on Sunday, adding that he was briefing President-elect Donald Trump’s team on the risk.

Iran has suffered setbacks to its regional influence after Israel’s assaults on its allies, Palestinian Hamas and Lebanon’s Hezbollah, followed by the fall of Iran-aligned Syrian President Bashar al-Assad.

Israeli strikes on Iranian facilities, including missile factories and air defenses, have reduced Tehran’s conventional military capabilities, Sullivan told CNN.

“It’s no wonder there are voices (in Iran) saying, ‘Hey, maybe we need to go for a nuclear weapon right now … Maybe we have to revisit our nuclear doctrine’,” Sullivan said.

Iran says its nuclear program is peaceful, but it has expanded uranium enrichment since Trump, in his 2017-2021 presidential term, pulled out of a deal between Tehran and world powers that put restrictions on Iran’s nuclear activity in exchange for sanctions relief.

Sullivan said that there was a risk that Iran might abandon its promise not to build nuclear weapons.

“It’s a risk we are trying to be vigilant about now. It’s a risk that I’m personally briefing the incoming team on,” Sullivan said, adding that he had also consulted with U.S. ally Israel.

Trump, who takes office on Jan. 20, could return to his hardline Iran policy by stepping up sanctions on Iran’s oil industry.

© Reuters. FILE PHOTO: Iranian flag flies in front of the UN office building, housing IAEA headquarters, in Vienna, Austria, May 24, 2021. REUTERS/Lisi Niesner/File Photo

Sullivan said Trump would have an opportunity to pursue diplomacy with Tehran, given Iran’s “weakened state.”

“Maybe he can come around this time, with the situation Iran finds itself in, and actually deliver a nuclear deal that curbs Iran’s nuclear ambitions for the long term,” he said.

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Ukraine says Russian general deliberately targeted Reuters staff in August missile strike

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(Reuters) -Ukraine’s security service has named a Russian general it suspects of ordering a missile strike on a hotel in eastern Ukraine in August and said he acted “with the motive of deliberately killing employees of” Reuters.

The Security Service of Ukraine (SBU) said in a statement on Friday that Colonel General Alexei Kim, a deputy chief of Russia’s General Staff, approved the strike that killed Reuters safety adviser Ryan Evans and wounded two of the agency’s journalists on Aug. 24.

In a statement posted on Telegram messenger the SBU said it was notifying Kim in absentia that he was an official suspect in its investigation into the strike on the Sapphire Hotel in Kramatorsk, a step in Ukrainian criminal proceedings that can later lead to charges.

In a separate, 15-page notice of suspicion, in which the SBU set out findings from its investigation, the agency said that the decision to fire the missile was made “with the motive of deliberately killing employees of the international news agency Reuters who were engaged in journalistic activities in Ukraine”.

The document, which was published on the website of the General Prosecutor’s Office on Friday, said that Kim had received intelligence that Reuters staff were staying in Kramatorsk. It added that Kim would have been “fully aware that the individuals were civilians and not participating in the armed conflict”.

The Russian defence ministry did not respond to a request for comment on the SBU’s findings and has not replied to previous questions about the attack. The Kremlin also did not respond to a request for comment. Kim did not reply to messages sent by Reuters to his mobile telephone seeking comment about the SBU’s statement and whether the strike deliberately targeted Reuters staff.

The SBU did not provide evidence to support its claims, nor say why Russia targeted Reuters. In response to questions from the news agency, the security agency declined to provide further details, saying its criminal investigation was still under way and it was therefore not able to disclose such information.

Reuters has not independently confirmed any of the SBU’s claims.

Reuters said on Friday: “We note the news today from the Ukrainian security services regarding the missile attack on August 24, 2024, on the Sapphire Hotel in Kramatorsk, a civilian target more than 20 km from Russian-occupied territory.”

“The strike had devastating consequences, killing our safety adviser, Ryan Evans, and injuring members of our editorial team. We continue to seek more information about the attack. It is critically important for journalists to be able to report freely and safely,” the statement said.

Reuters declined to comment further on the allegation that its staff were deliberately targeted.

The SBU statement said Kim had been named a suspect under two articles of the Ukrainian criminal code: waging an aggressive war and violating the laws and customs of war.

“It was Kim who signed the directive and gave the combat order to fire on the hotel, where only civilians were staying,” it said.

Evans, a 38-year-old former British soldier who had worked as a safety adviser for Reuters since 2022, was killed instantly in the strike.

The SBU statement gave some details about how the strike had occurred, according to its investigation.

“To carry out the attack, the Russian colonel general involved one of his subordinate missile forces units,” the Ukrainian agency said, adding that the strike was carried out with an Iskander-M ballistic missile.

The SBU did not identify the specific unit.

© Reuters. FILE PHOTO: Reuters safety advisor Ryan Evans holds a cat during a news assignment, as Russia's attack on Ukraine continues, during intense shelling in Kramatorsk, Ukraine, December 26, 2022. REUTERS/Clodagh Kilcoyne/File Photo

Ivan Lyubysh-Kirdey, a videographer for the news agency who was in a room across the corridor, was seriously wounded. Kyiv-based text correspondent Dan Peleschuk was also injured.

The remaining three members of the Reuters team escaped with minor cuts and scratches.

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