Intuitive Machines' stock surges, boosted by $30 million NASA lunar rover contract

By James Rogers

Intuitive Machines made history earlier this year with the first commercial lander to successfully reach the moon

Shares of Intuitive Machines Inc. rose 11.2% in premarket trades Thursday after NASA awarded the space-exploration company at $30 million contract to complete a feasibility roadmap for a Lunar Terrain Vehicle using the company's Nova-D lunar lander.

Intuitive Machines (LUNR) is partnering with technology company AVL, Boeing Co. (BA), Michelin (FR:ML) (MGDDY), and Northrop Grumman Corp. (NOC) to develop the Reusable Autonomous Crewed Exploration Rover (RACER). The space company is the prime contractor in the effort to develop RACER.

"This is the precursor contract to the Lunar Terrain Vehicle (LTV) $4.6B project for transport services on the Moon," Benchmark analyst Josh Sullivan wrote in a note released Thursday. "LTV will be a marquee lunar infrastructure award as the vehicle transport services for the $93B Artemis program."

Related: Intuitive Machines says Odysseus has 'permanently faded' on the moon, but is planning another mission this year

LTV also allows the contractor to sell lunar transport to commercial third parties as well - increasing the commercial value of the contract - according to Sullivan, who described the deal as "Uber for the Moon."

NASA's Artemis program plans to establish a long-term human presence on the lunar surface, and aims to harness water ice for life support and fuel.

Intuitive Machines' IM-1 mission made history earlier this year when Odysseus became the first commercial lander to successfully land on the lunar surface. Odysseus reached the lunar surface on Feb. 22, sending the company's stock soaring. Last month Intuitive Machines said that the lander has "permanently faded" and has no chance of waking up on the moon.

Related: Odysseus has 'fundamentally changed the economics of landing on the moon,' says Intuitive Machines

"LUNR's recent IM-1 landing on the Moon, despite challenges, provides the company a proven lunar flight heritage which competitors lack and benefits future contract evaluations," wrote Benchmark's Sullivan. "Further, LUNR has two additional IM missions back to the Moon coming up, and is bidding on IM-4 in 2Q24."

Intuitive Machines shares have risen 134.1% in the last 12 months, outpacing the S&P 500 index's SPX gain of 27%.

-James Rogers

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04-04-24 0810ET

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