Why Did Rocket Lab Stock Slide Over 4% After-Hours Today?

• Rocket Lab said that qualification testing of the Neutron Stage 1 tank, conducted overnight, resulted in a rupture during a hydrostatic pressure trial.
• In November, the company said 2026 will be the year it expects to debut its Neutron, compared with the initial plan to launch the rocket towards the end of last year.
• The company said that it was reviewing the Stage 1 test data, which will determine the extent of the impact on Neutron’s launch schedule.

Shares of Rocket Lab fell more than 4% in after-market trading on Wednesday as the company’s latest qualification results from its Neutron rocket testing raised investor concerns and drew heavy online chatter.

The company stated that the qualification testing of the Stage 1 tank of Neutron, conducted overnight, resulted in a rupture during a hydrostatic pressure trial. Rocket Lab said these are part of its qualification testing and did little to ease investors' concerns about the delay of Neutron.

Rocket Lab’s stock is eyeing a third day in the red if losses carry over into the market session on Thursday. The company’s shares have gained 26% so far this year and surged 174% in 2025, building on several Electron launches and U.S. space contracts.

Neutron Launch

In November, the company said 2026 will be the year it expects to debut its Neutron, compared with the initial plan to launch the rocket towards the end of last year.

Rocket Lab then noted that the cash consumption will remain elevated due to Neutron development, investments in subsequent Neutron tail production, and infrastructure expansion to scale the business beyond the initial test flight. The company has been doing a deep dive into the qualification test and acceptance of every major assembly, sub-assembly, and system for Neutron before it gets into launch operations

Latest Neutron Update

Rocket Lab said that there was no significant damage to the test structure or facilities and that the next Stage 1 tank is already in production. The rocket's development will continue as the team analyses the results of the recent qualification test.  

The company said it was reviewing the Stage 1 test data, which will determine the extent of the impact on Neutron’s launch schedule, and that it would provide an update during its February earnings call.

What Is Retail Thinking?

Retail sentiment on Rocket Lab was in the ‘bullish’ territory, compared to ‘neutral’ from a week ago, with message volumes at ‘high’ levels, according to data from Stocktwits.

A user on Stocktwits said this should not result in any significant delays in Neutron.

Shares of Rocket Lab have gained 178% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Tesla Shareholders Eye Answers On SpaceX IPO At EV Giant’s Upcoming Q4 Earnings Call

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