Switch to seedless. Get 30% off with SWITCH30 till Oct 19Rocket Lab delays Neutron launch, stock drops sharply
4.1 Markets Rocket Lab delayed Neutron’s first launch to 2027 due to manufacturing issues, causing RKLB stock to drop up to 15%. The delay increases financial risks despite strong revenue and backlog.
Rocket Lab has postponed the inaugural launch of its Neutron medium-lift rocket from late 2026 to 2027, citing manufacturing defects in key carbon-composite components, especially the first-stage propellant tank dome. This follows a previous tank rupture during January testing and has triggered a sharp decline in Rocket Lab's stock (RKLB), which dropped 10–15% in a single day and is down about 25% year-to-date. The delay pushes back Rocket Lab’s entry into the competitive medium-lift launch market, heightening risks related to R&D costs and delaying commercial revenue. Despite this setback, Rocket Lab’s Electron launch business remains active, with the company reporting record Q2 revenue and a robust backlog. However, investor sentiment has soured, with some shifting attention to other space sector stocks. Analysts have lowered their price targets for RKLB, though most still maintain a buy rating.
