Rocket Lab USA Stock Is Plunging On Tuesday - What's Going On?

Rocket Lab USA, Inc RKLB stock is trading lower Tuesday after the company's 41st mission succumbed to technical Issues.

The aerospace manufacturer and small satellite launch service provider encountered a setback during its 41st mission. 

The incident occurred after the rocket's successful liftoff from Launch Complex 1, completing the initial stage burn and separation as planned. 

Also Read: Rocket Lab Buys Virgin Orbit Facility In $16M Deal, Plans Engine Development

However, an issue arose approximately 2 minutes and 30 seconds into the flight, leading to the mission's premature termination.

The company expressed deep regret to its partner, Capella Space, for losing the mission. 

Rocket Lab is collaborating closely with the Federal Aviation Administration (FAA) and other relevant agencies to initiate an investigation into the root cause of the problem. 

In previous missions, the Electron rocket delivered 171 satellites into orbit over 37 successful orbital missions. 

Rocket Lab aims to promptly identify and rectify the issue, allowing a swift return to launch operations.

Due to this incident, Rocket Lab has postponed its next mission, initially scheduled before the end of the third quarter. The company anticipates providing revised guidance regarding third-quarter revenue in the coming days as it focuses on implementing corrective measures.

The company expected Q3 revenue of $73 million - $77 million vs. consensus of $82.9 million.

Price Action: RKLB shares traded lower by 20.20% at $4.02 premarket on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.