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Rocket Lab Corporation (RKLB) stock fell nearly 10% in Thursday's premarket trading, extending losses from Wednesday's after-hours session after the company officially delayed the first launch of its Neutron rocket until 2027.
The setback followed the discovery of manufacturing defects in a key component of the rocket's first stage, raising concerns about the timeline for its highly anticipated debut.
CEO Peter Beck said inspections revealed tiny air pockets between layers of carbon fiber in the rocket's forward propellant dome. These defects could weaken the structure and affect its reliability.
The problem emerged after Rocket Lab changed its manufacturing process and increased the thickness of certain sections of the dome to improve strength.
The company identified the issue during testing and adjusted its manufacturing process to prevent similar defects.
Rocket Lab has since successfully tested the revised process on another dome and is building a replacement for the affected component.
The replacement dome must undergo further inspections before the company can assemble the first stage.
The company will then conduct water-pressure and extremely low-temperature tests to assess the rocket's structural integrity.
Rocket Lab expects to complete assembly and testing in the first quarter of 2027. It plans to announce a revised launch date after reaching those milestones.
Despite the delay, management said customer demand for Neutron remains strong. The company also expects to announce additional contracts in the coming months.
The latest postponement follows an earlier timeline revision in August.
At the time, the company shifted its focus to bringing Neutron to the launch pad by the fourth quarter of 2026 without committing to a firm launch date.
Before that revision, the company had targeted the fourth quarter of 2026 for Neutron's inaugural flight.
The latest setback adds uncertainty to a program central to Rocket Lab's expansion into the market for larger satellite launches.
RKLB Price Action: Rocket Lab shares were down 9.57% at $53.51 during premarket trading on Thursday, according to market data.
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