Shares of Rocket Lab (RKLB) fell more than 10% on Thursday after the space company said the first launch of Neutron, its medium-range reusable rocket, was delayed until 2027.
Rocket Lab had targeted the fourth quarter of 2026 for Neutron’s debut. CEO Peter Beck blamed manufacturing problems with the forward booster dome on the rocket’s first stage.
“This does not necessarily mean that the dome would fail in flight, but our practice is to only proceed when we believe the system has the appropriate margins,” Beck said in a video update, according to Stocktwits. “Possible success is not our standard.”
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Beck said the company has identified manufacturing fixes and plans to complete assembly of the first stage during the quarter, when it will be in a better position to announce a launch date. He also highlighted the strong demand and upcoming contract announcements.
Neutron is at the heart of Rocket Lab’s efforts to compete for larger missions in a market dominated by SpaceX’s (SPCX) Falcon 9. Its schedule has already been delayed: Rocket Lab unveiled the rocket in 2021 with a goal of first flight in 2024, then moved it to mid-2025 and then to 2026. A first-stage tank ruptured during testing in January.
The plunge came after a 7.9% decline during Wednesday’s regular session, before Rocket Lab issued the update at 4:40 p.m. ET.
If Thursday’s decline holds through the close, it would be Rocket Lab’s lowest close since December 2025. The stock is down about 25% this year and about 65% below its 52-week high of $151, set in May.
Space stocks were already under pressure. AST SpaceMobile (ASTS) fell 10% on Wednesday after Piper Sandler cut its price target to $54, citing competition from SpaceX.
Rocket Lab is also working to close its deal with satellite operator Iridium (IRDM).
Cantor Fitzgerald retained its overweight rating and $122 price target on Rocket Lab after the update, according to Yahoo Finance analyst data.
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