Rocket Lab shares plunge after mission ended minutes after launch

Bengaluru — Shares of Rocket Lab USA slumped about 26% in premarket trading on Tuesday after the space company’s latest mission ended about two-and-a-half minutes after launch due to an undisclosed issue.

The company expects to revise its third-quarter revenue forecast in the coming days and will postpone its next mission, which was scheduled before the end of the third quarter, it said on Tuesday.

“We are working closely with the FAA [US Federal Aviation Administration] and supporting agencies as the investigation into the root cause commences,” the company said.

Mission failures weigh heavily on smaller rocket companies that carry payloads for space exploration start-ups. Virgin Orbit, founded by billionaire Richard Branson, filed for bankruptcy in April after its rocket failed to reach orbit in January.

Rocket Lab’s stock has fallen about 60% since end-2021, when space investments started drying up. Its market capitalisation stood at $2.44bn at the most recent close.

Its Electron rocket was carrying satellites for US space tech company Capella Space, which provides radar and Earth observation technology.

Capella Space did not immediately respond to a request for comment.

Rocket Lab said last week it signed a deal for four launches with defence contractor Leidos, scheduled for 2024 and 2025.

Reuters