The stock had recovered part of the decline by 1: 48 p. Neutron had previously been expected to reach the launchpad in the fourth quarter of 2026.
Rocket Lab said the schedule changed after engineers identified a manufacturing problem in the propellant domes for Neutron’s first-stage tanks. The company said it traced the problem to a design change that increased the thickness of some sections, then modified the manufacturing process; an aft dome produced under the revised procedure passed inspection. The time required to investigate the issue and manufacture a replacement forward dome pushed the launch into next year.
The setback follows an earlier January failure in which a Neutron propellant tank ruptured during a hydrostatic pressure test. That tank had been made by a third-party contractor using a manual carbon-fiber layup process while Rocket Lab brought an automated fiber-placement system online. The company still must complete first-stage qualification and Archimedes engine qualification before beginning the launch campaign at Wallops Island, Virginia. Rocket Lab is developing Neutron as a reusable vehicle with a substantially greater lift capacity than its Electron rocket, targeting launch opportunities involving government missions and large satellite constellations.
Analysts also reduced their targets after the schedule change. KeyBanc cut its target to $100 from $135 while retaining an Overweight rating, and Clear Street analyst Greg Pendy lowered his target to $105 from $129 while maintaining a Buy rating.