Two pilots were reportedly aboard the ship during the test flight.
NBC News has reported that a witness saw an inflight explosion as well as a debris field in the desert.
Virgin Galactic has announced via Twitter that SpaceShip2 suffered a serious anomaly during a powered test flight conducted by the company's partners at Scaled Composites that resulted in the loss of the spacecraft.
The status of the pilots are unknown at this time.
The space exploration company, which was started by Richard Branson, tweeted:
#SpaceShipTwo has experienced an in-flight anomaly. Additional info and statement forthcoming.
- Virgin Galactic (@virgingalactic) October 31, 2014
The CEO of #Mojave Air and #Space Port confirms @virgingalactic's #SpaceShipTwo has crashed. http://t.co/nJ6fc8rwib pic.twitter.com/XfojckbiKL
- KGET News (@KGETnews) October 31, 2014
#SpaceShipTwo UPDATE: Rescue crew seen carrying person on stretcher to chopper http://t.co/AJFLHsYm8L pic.twitter.com/MJaFy0clTw
- ABC7 Eyewitness News (@ABC7) October 31, 2014
Virgin Galactic confirms it suffered loss of #SpaceShipTwo during test flight; status of pilots unknown pic.twitter.com/ciUu8vgEtk
- FOX 4 NEWS (@FOX4) October 31, 2014