Rocket Lab Stock Up 17.3% After $515M Agreement With US Gov

Rocket Lab’s shares surged 17.2% in premarket trading on the reports that the company secured a $515 million contract a US government customer.SpaceX rival Rocket Lab (RKLB) secured a $515 million contract with a government customer to design, manufacture, deliver, and operate 18 space vehicles. The startup’s shares popped 17.3% in premarket trading on the news, with a share price of $5.20 at the time of writing. Rocket Lab Wins Gov. Contract for 18 Space VehiclesRocket Lab, a US aerospace manufacturer and launch service provider, announced on Friday it has won a contract with a US government customer to design, produce, deliver, and operate 18 space vehicles. The deal is worth $515 million, including a $480 million base plus $26 million in additional incentives and options.The company will begin its work on the project immediately. The delivery of the space vehicles to the government customer for launch is scheduled for 2027, operation of the satellites through 2030, and an option to operate them through 2033. Although it’s a much smaller company, Rocket Lab is perceived as a rival to SpaceX, a rocket maker co-founded by Elon Musk. Both specialize in commercial satellite launch services, Rocket Lab focuses more on small satellite launches with its Electron rocket. Meanwhile, SpaceX offers a broader range of launch capabilities, including medium and heavy payloads.Last week, Rocket Lab completed a successful launch of its “Electron” rocket, its first since the one that failed in September. This marked the 10th launch for the Long Beach, California-based company in 2023, well below the 90 conducted by SpaceX.  Rocket Lab Stock Soars in PremarketShares of Rocket Lab popped over 17% in premarket trading Friday following the announcement of a new government contract.The startup’s stock is up around 14.5% since the start of a volatile year for the company. RKLB took a significant beating in early September after its rocket launch in New Zealand failed three minutes after the take-off. The stock has been down around 32% since then; however, the recent positive developments have reignited investor interest in the company.In addition to its reusable orbital-class small rocket Electron, Rocket Lab is also working on a larger offering called Neutron, which can carry larger payloads and even transportation services for people into space.More By This Author:US Third-Quarter GDP Trimmed To 4.9%, Jobless Claims Lower Than Expected
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