Rocket Lab Shares Slide as Neutron Debut Slips to 2027 Over Tank Dome Defects

RKLB said on October 14 that the first flight of Neutron, the rocket designed to carry about 13,000 kilograms to low Earth orbit, will slip into 2027 after the company found manufacturing defects in the forward dome of the first-stage propellant tank. Neutron had been aiming for no earlier than the fourth quarter of 2026, a date that was itself the product of earlier slips from an original 2024 target. Rocket Lab says it has identified the fixes, expects the replacement dome to be finished before the first quarter of 2027, and now expects cryogenic and hydrostatic qualification testing to run into that quarter.

The stock fell 7.85% in the regular session on October 14 to $59.18, then dropped as low as $53.44 after hours. Selling continued on October 15: the shares fell as much as 13% to $51.42 early in the session before recovering some ground, and SentiSense price data showed them at $55.25 after the close, down about 6.6% on the day. Retail mood on Stocktwits fell to a record low of 22 out of 100. CEO Beck said the defects "don't necessarily mean that the dome would fail on flight," but that the company proceeds only when it believes the system has appropriate margins.

Analysts trimmed targets but held their ratings. KeyBanc cut its target to $100 from $135 and now models one fewer revenue-generating launch in 2027, while Clear Street cut to $105 from $129 and said the delay pushes growth and profitability back by about three quarters. Roth Capital kept a Buy rating with a $110 target and Cantor Fitzgerald reiterated Overweight. The consensus price target slipped only to $105.05 from $109.37, and SentiSense analyst data shows the same $105.05 mean across 19 analysts.

The delay lands while Rocket Lab is working through its agreed acquisition of Iridium IRDM, which won 99.6% of votes cast at its shareholder vote and is expected to close in mid-2027. Based on 2025 results the deal would more than double Rocket Lab's revenue, and the company raised $1.944 billion in an at-the-market share sale to fund it. Rocket Lab also reported record second-quarter 2026 revenue of $234 million and a launch backlog of about $2.36 billion. The next markers are the qualification test results in early 2027, any further change to the Neutron window, and progress toward the Iridium close.