Here's Why Intuitive Machines Stock Soared in April

Shares of Intuitive Machines (NASDAQ: LUNR) were up in April. The company's stock gained 10.1% over the course of the month. The move came as the S&P 500 and Nasdaq Composite both had a particularly eventful month.

The company, which designs and builds spacecraft, made two major announcements that helped propel its stock higher.

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Intuitive will partner with SpaceX

Earlier in the month, the company announced it had chosen SpaceX's Falcon 9 rocket as the launch system that will carry its fourth lunar delivery mission (IM-4). The rocket, which launches from Florida, will carry data relay satellites critical to NASA's Near Space Network Services (NSNS) contract, an initiative from the Federal agency aimed at creating a permanent communication system on the moon.

"Lunar surface delivery and data relay satellites are central to our strategy to commercialize the Moon," said Intuitive Machines CEO Steve Altemus in the announcement. The shift to a payload of communication infrastructure shows that the company is evolving beyond one-off lunar landings toward establishing permanent lunar services.

Image source: Getty Images.

Two additional missions will complete the satellite network that will support both NASA's lunar ambitions and commercial operations, and critically, the network will operate on a "pay-by-the-minute" model, creating a recurring revenue source for the company.

Intuitive wins a grant from the Texas Space Commission

Later in the month, Intuitive was chosen by the Texas Space Commission to receive a grant worth up to $10 million. The funding will help Intuitive develop an Earth reentry vehicle as well as an orbital lab.

The company has been developing both to help de-risk missions to the lunar surface and even to Mars. Having a single platform that is purpose-built for reentry removes the burden of designing for it in the vehicles that will actually make the trips deeper into space. The lab will also serve as a fabrication facility for biomanufacturing of advanced compounds that are only possible in a zero-gravity environment.

Recent challenges

Although Intuitive's most recent lunar mission failed -- its lunar lander tipped over on touchdown and lost power quickly -- NASA has reiterated its belief in the company's systems, and the company is continuing on undaunted. The new announcements show that Intuitive is diversifying its offerings beyond lunar landers, opening up opportunities and making it more resilient to setbacks and failures of any one platform.

While Intuitive Machines still carries a great deal of risk -- it still must prove its technology is fully capable and its business model is viable for the long term -- the company continues to demonstrate significant potential. It's an intriguing option for investors with higher risk tolerance.

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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.