TLDR
- Rocket Lab stock rose 4.1% in premarket trading as tensions between Elon Musk and Trump escalate
- Tesla fell 6.6% premarket after Musk announced plans to form “The America Party” political party
- Rocket Lab’s Neutron rocket approaches maiden flight in second half of 2025 with 15,000 kg payload capacity
- Company secured U.S. Air Force Research Laboratory contract for Rocket Cargo mission in May 2025
- Shares gained 630.8% over past year and 103.6% over past three months
Rocket Lab stock jumped 4.1% in premarket trading Monday as political tensions between Elon Musk and President Trump reached new heights. The space company appears to be benefiting from the latest chapter in the ongoing feud between the Tesla CEO and the president.
Musk announced Saturday that he would create a new political party called “The America Party” to challenge both Republicans and Democrats. This came after he criticized Trump’s “One Big Beautiful Bill” spending package.
Trump responded on Truth Social, saying he was “saddened to watch Elon Musk go completely off the rails.” The president’s criticism sent Tesla stock down 6.6% to $294.41 in premarket trading.
The political drama could impact SpaceX’s government contracts, potentially opening doors for competitors like Rocket Lab. The smaller space company operates as a kind of mini-SpaceX with both launch and satellite building capabilities.
Neutron Rocket Approaches Critical Milestone
Rocket Lab is preparing for a major milestone with its Neutron rocket set for its maiden flight in the second half of 2025. The medium-class, reusable vehicle can carry approximately 15,000 kg of payload.
This represents a step up from the company’s smaller Electron launcher. Neutron aims to capture the medium-lift payload market while positioning Rocket Lab to compete with heavy-lift providers.
The company announced in May 2025 that it would launch Neutron for the U.S. Air Force Research Laboratory. This Rocket Cargo mission will support point-to-point cargo transportation for defense logistics.
Rocket Lab revealed details about its ocean landing platform in February. The modified barge includes autonomous ground support equipment to capture and secure the landed Neutron.
Strong Stock Performance Despite Market Challenges
Rocket Lab shares have gained 630.8% over the past year compared to the industry’s 50.9% growth. The stock has risen 103.6% over the past three months alone.
The company was identified last month as a potential beneficiary of Musk’s fallout with Trump. Shares have risen more than 20% since that analysis.
Barron’s highlighted five stocks that could benefit from tensions between Musk and Trump. AST SpaceMobile, another SpaceX competitor, was up 2.1% in premarket trading.
Tesla also faces competition in robotics from Serve Robotics, which builds AI-trained food-delivery robots. However, Serve stock was down 1.5% in premarket trading.
Alphabet’s Waymo unit competes with Tesla in robo-taxis, completing more than 250,000 autonomous rides weekly. Tesla launched its robo-taxi service in Austin, Texas in June.
SpaceX handles more than half of all global launches, generating billions in annual revenue. Rocket Lab expects to generate about $575 million in 2025 according to FactSet.
The space launch services market continues growing due to demand for satellite constellations and government investments. Companies like Boeing and Lockheed Martin also compete in this space.
Boeing serves as prime contractor for NASA’s Space Launch System rocket. Lockheed Martin builds the Orion spacecraft for the Artemis II lunar mission.
Rocket Lab trades at a forward 12-month Price/Sales ratio of 22.49X compared to the industry average of 10.06X. The Zacks Consensus Estimates for the company’s 2025 and 2026 losses have improved over the past 60 days.
The company currently carries a Zacks Rank #4 (Sell) rating despite its strong stock performance and upcoming Neutron launch milestone.
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