Shares of Rocket Lab (NASDAQ: RKLB) fell 8% in after-hours trading Wednesday after the company confirmed its Neutron rocket will not launch until 2027.
The stock had already dropped 8% during the regular session to $59.18 before diving further after hours to as low as $53.44.
CEO Peter Beck attributed the delay to manufacturing issues identified in the forward propellant dome on the launch vehicle’s first stage.
Beck was direct in explaining the company’s decision to halt progress, stating in a video update that the defects did not guarantee in-flight failure but fell short of internal standards.
“They don’t necessarily mean that the dome would fail on flight, but our practice is to proceed only when we believe the system has the appropriate margins,” Beck said.
He added bluntly: “Possible success isn’t our standard.”
Beck confirmed the company has identified manufacturing fixes and expressed confidence in moving forward, though the investigation and remediation process has cost significant time.
The time gained from the delay will also be used to implement upgrades to other parts of the vehicle that were previously planned for future flights.
Beck said construction of a new forward dome and a full inspection to rule out additional issues will be completed before the first quarter, with full first-stage assembly expected within that same period.
The company plans to announce a confirmed launch date once first-stage assembly is complete, giving a clearer picture of the path to Neutron’s debut.
Beck pointed to continued strong customer demand and signaled upcoming contract announcements, noting that clients prioritize reliability over speed to launch.
“We believe Neutron is going to be a game changer, and taking the time now to solve these challenges means we’re in a better position to deliver a rocket that’s ready to meet the needs for the industry for years to come,” he said.
Neutron has now suffered multiple schedule slips since its 2021 unveiling, when Rocket Lab originally targeted a first flight in 2024, a goal that later shifted to mid-2025 and then into 2026.
A first-stage tank rupture during hydrostatic testing in January 2026 forced yet another revision, pushing the target to no earlier than the fourth quarter of 2026, before this latest announcement pushed it definitively into 2027.
Neutron is designed as a reusable medium-lift launch vehicle intended to compete in a market currently dominated by SpaceX’s Falcon 9, while also supporting Rocket Lab’s own satellite ambitions.
On Stocktwits, retail sentiment around RKLB remained in “bearish” territory over the past 24 hours, though message volume climbed from “low” to “normal” levels following the announcement.
Reactions among retail traders were split, with one user dismissing the selloff by noting the company had previously warned of possible delays, while another expressed frustration at the continued setbacks.
RKLB shares are now down 15% year-to-date, reflecting the compounding pressure from repeated Neutron delays on investor confidence in the company’s long-term growth trajectory.
