Rocket Lab USA, Inc. (RKLB, Financial) stock dropped 10% on Tuesday morning after Bleeker Street Research released a short report questioning the company's projected timelines and financial stability. The report challenges Rocket Lab's claims about the readiness of its Neutron rocket, which the firm plans to use to compete with SpaceX's Falcon 9, and projects a delay of one to two years beyond the mid-2025 target.
The concerns raised in the report echo those about Rocket Lab's ability to make significant advances in crucial development areas including test of the engines, production scale, and launch infrastructure. The report also questions how viable one of the firm's single verified contracts with E-Space, a fledgling company that lacks the financial means, is for the Neutron launch and queries pricing of launch slots. Additionally, it further calls into question the company's prospects at landing the National Security Space Launch's Phase 3 Lane 1 program.
