Intuitive Machines Inc. (LUNR) saw its stock price plummet 8.86% during intraday trading on Friday, reflecting a sharp downturn for the space exploration company.

The decline was driven by a combination of company-specific and sector-wide headwinds. Primarily, the company failed to secure a key NASA lunar terrain vehicle construction contract as part of the space agency's nearly $1 billion initial lunar base cargo and infrastructure awards, which went to competitors including Blue Origin, Lunar Outpost, Astrolab, and Firefly Aerospace.

Compounding the negative sentiment, the broader commercial space sector experienced a significant sell-off. This was triggered by a dramatic explosion of a Blue Origin New Glenn rocket during a test flight, which cast a shadow over the industry and prompted investors to lock in profits following a recent strong rally in space stocks throughout May.