RKLB Drops After Losing $700 Million NASA Contract, Cathie Wood Buys the Dip: Can the Stock Rebound?
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The NASA Mars communication network contract has been awarded to Jeff Bezos's Blue Origin. The project covers design, development, integration, launch, and operations, requiring the delivery of a high-performance orbiter by December 31, 2028, with the network expected to become operational in 2030. Rocket Lab was one of the bidders, with its proposal based on the "Explorer" platform and equipped with an optical communication system. CEO Peter Beck had previously expressed confidence in the bid and hoped NASA would announce its decision as soon as possible. However, NASA ultimately chose Blue Origin. The lost bid has limited direct impact on Rocket Lab, as market focus remains centered on the progress of its Neutron rocket. Since its announcement in 2021, the maiden flight of Neutron has been postponed multiple times. On January 21 this year, the first-stage fuel tank ruptured during a hydrostatic pressure test, forcing adjustments to the production schedule. The company stated in its second-quarter earnings report in August that the first Neutron is still scheduled to arrive at the Virginia launch site in the fourth quarter, but after arrival, it will still need to complete steps such as integrated testing, static fire tests, and wet dress rehearsals. Beck acknowledged that the time window to complete the maiden flight before the end of the year is narrowing. While the...
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