New York, January 23, 2026, 18:37 EST — After-hours trading
- Shares of Rocket Lab climbed 1.1% during the regular session before slipping in after-hours trading
- During Neutron qualification testing, the company reported a Stage 1 tank rupture; the impact on the schedule is still being assessed
- Rocket Lab completed its first Electron launch of 2026 and has another mission scheduled for next week
Rocket Lab Corporation’s shares ended Friday up 1.1% at $88.90, only to dip 0.4% to $88.53 after hours. During the day, the stock swung between $86.12 and $94.45, with about 24 million shares changing hands. (StockAnalysis)
The late drop follows news of a hiccup with Neutron, Rocket Lab’s next-gen rocket. During an overnight qualification test, the Stage 1 tank ruptured under hydrostatic pressure—a water pressure test designed to push the tank to its breaking point. “Testing failures are not uncommon during qualification testing,” Rocket Lab said, noting it will analyze the data to determine any effects on the launch timeline. (SEC)
Why it matters now: Neutron is the key to Rocket Lab’s shift from its smaller Electron rocket toward high-volume tasks like constellation launches and national-security contracts. That market is packed and fast-moving, so any hold-ups quickly undermine trust.
TD Cowen analyst Gautam Khanna raised concerns about potential fallout from a slip. He noted, “If a launch delay results from the tank rupture, a second Neutron launch in 2026 would be unlikely,” citing Aviation Week’s report that the initial flight was slated for the second quarter. (Aviation Week)
Rocket Lab pushed forward with Electron as it develops Neutron. On Thursday, it launched two Open Cosmos satellites from Mahia, New Zealand—marking its first mission of 2026. Founder and CEO Sir Peter Beck described the flight as “a great showcase of the benefits of flying dedicated on Electron.” (GlobeNewswire)
The company announced that the mission, “The Cosmos Will See You Now,” placed the pair into a circular low-Earth orbit roughly 1,050 km up. Rocket Lab noted this flight profile showcased Electron’s capability to reach a broader range of orbits, appealing to customers keen to skip ride-share timetables. (Rocket Lab)
A separate regulatory filing added another data point as the stock fluctuated. Director Jon A. Olson offloaded 15,205 shares on Jan. 20, according to a Form 4 filing, doing so under a Rule 10b5-1 plan — an insider trading arrangement established in advance. After the sale, Olson reported holding 345,630 shares. (SEC)
Neutron aims to carry significantly heavier loads than Electron, targeting missions where SpaceX’s Falcon 9 dominates on cost and launch frequency. According to The Register, Neutron is built to deliver roughly 13,000 kg to low-Earth orbit and then return for reuse. The tank test was conducted at Rocket Lab’s Space Structures Complex in Middle River, Maryland. (The Register)
The immediate risk is clear: if qualification testing reveals more structural problems, addressing them could push timelines and raise costs. Rocket Lab hasn’t shared much about how much cushion exists in its Neutron schedule. Another setback would probably shift investor attention back to cash burn, upcoming milestones, and the true meaning behind the “February update.”
Up next, Rocket Lab has issued a launch safety notice for an Electron mission dubbed “Bridging the Swarm.” The liftoff is set for no earlier than Jan. 28 from Launch Complex 1 in New Zealand, with backup dates stretching through Feb. 9. Investors will also be keenly awaiting the company’s Neutron schedule update during its February earnings call. (Rocket Lab)
