TLDR
RKLB shares tumble 10.15% as Neutron’s maiden flight moves into 2027 again.
Air pockets in Neutron’s carbon-composite tank dome trigger further repairs.
Rocket Lab’s latest delay follows a tank rupture during testing in January.
KeyBanc cuts its RKLB price target to $100, while Clear Street moves to $105.
Rocket Lab’s Electron launch business continues as Neutron faces more tests.
Rocket Lab Identifies Manufacturing Defects in Neutron Rocket
Rocket Lab disclosed the revised launch schedule Wednesday through an investor update and a regulatory filing. The company identified manufacturing problems involving carbon composite structures in Neutron’s first-stage barrels and propellant tank domes. These components support the rocket’s structural strength and help contain propellant during flight.
Engineers discovered small air pockets within the first-stage propellant tank dome cap during manufacturing inspections. These defects can weaken composite materials and create structural risks under extreme operating conditions. Rocket Lab introduced manufacturing improvements to address the problems and strengthen component reliability.
The latest postponement follows an earlier setback involving a first-stage tank rupture during January testing. Rocket Lab subsequently moved its launch target toward the fourth quarter of 2026. However, further manufacturing challenges have extended the development schedule beyond the company’s previous expectations.
Rocket Lab Faces Delayed Neutron Revenue Opportunities
Neutron represents Rocket Lab’s planned expansion beyond its established small-launch operations into larger satellite missions. The reusable rocket aims to compete with SpaceX’s Falcon 9 for commercial and government launch contracts. However, the revised timetable delays Neutron’s entry into this market and its potential revenue contribution.
Rocket Lab originally announced Neutron in 2021 and initially targeted a 2024 launchpad milestone. The company later shifted its expected inaugural flight into 2025 following development and qualification challenges. Further testing complications and manufacturing problems eventually pushed the target into 2027.
Rocket Lab continues operating its Electron launch vehicle and developing its HASTE capabilities. In September, the company announced a multi-year agreement covering 20 Electron missions for Japanese satellite operator Synspective. This agreement supports its existing launch business while Neutron undergoes additional manufacturing and testing work.
Wall Street Analysts Reduce RKLB Stock Price Targets
The revised Neutron schedule prompted several Wall Street analysts to lower their RKLB stock price targets. KeyBanc reduced its target from $135 to $100 following the company’s latest development setback. Similarly, Clear Street lowered its target from $129 to $105 after assessing the extended launch timetable.
The delay also extends Rocket Lab’s development spending before Neutron can begin supporting commercial launch operations. Meanwhile, the company must complete manufacturing improvements, component qualification, and additional testing before attempting its inaugural flight. These requirements remain central to Neutron’s progress toward operational readiness.
Rocket Lab plans to continue reporting progress through its manufacturing and testing milestones. The company also published additional details about the revised Neutron schedule through its investor relations materials. Its next development updates will clarify progress toward the planned 2027 launch.
The post Rocket Lab Corporation (RKLB) Stock: Plunges 10% as Manufacturing Defects Push Neutron Debut Into 2027 appeared first on Blockonomi.