The ongoing feud between U.S. President Donald Trump and Tesla (TSLA) and SpaceX CEO Elon Musk captured Wall Street’s attention on Monday, while turning out to be beneficial for Rocket Lab USA (RKLB), which saw its stock soar 9%. The rally in the stock of SpaceX’s smaller rival Rocket Lab was triggered in reaction to Musk’s announcement of the formation of his “America Party,” after falling out with Trump over the tax cut and spending bill.
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Meanwhile, Tesla stock plunged about 7% as investors are worried about the impact of Musk’s political ambitions on the EV maker’s business.
Rocket Lab Seen as a Beneficiary of the Trump-Musk Spat
Rocket Lab is a space company that offers launch services, satellite manufacturing, spacecraft components, and on-orbit management solutions. The company is viewed as one of the beneficiaries of the spat between Trump and Musk.
Yesterday was not the first instance of RKLB stock rising in reaction to the Trump-Musk feud. In early June, RKLB stock and shares of other SpaceX and Starlink rivals like Intuitive Machines (LUNR) and AST SpaceMobile (ASTS) rallied after Trump threatened to cancel government contracts and subsidies for Musk’s companies.
SpaceX generates billions of dollars in revenue as it handles more than half of all global rocket launches. Meanwhile, Rocket Lab, which is expected to generate about $575 million in revenue in 2025, is not yet comparable to SpaceX in terms of size or scale. However, the company is boosting its launch and satellite-building capabilities and could gain if Musk’s space company loses any government contracts.
Rocket Lab Is Focused on Capturing Further Growth Opportunities
Rocket Lab is growing rapidly, backed by the demand for its space solutions. In Q1 2025, RKLB’s revenue grew 32% to $123 million. The company recently announced the successful launch of its 68th Electron small orbital launch vehicle, which deployed a single satellite to space for a commercial customer.
The company is now gearing up for the debut of its Neutron medium-lift reusable launch vehicle in the second half of 2025. The Neutron launch vehicle is expected to be a key growth driver for Rocket Lab. Aside from Neutron, strategic acquisitions and expansion into Europe and other markets are also expected to fuel RKLB’s future growth.
Recently, KeyBanc analyst Michael Leshock increased his price target for Rocket Lab USA stock from $29 to $40 and reiterated a Buy rating. The 4-star analyst assigned a Street-high price target to reflect the strong growth momentum in Rocket Lab’s launch services and space systems, recent M&A integrations, and efforts to launch Neutron this year.
Is RKLB a Good Stock to Buy?
While Leshock is bullish on RKLB stock, some analysts, such as Goldman Sachs’ Noah Poponak, are cautious due to profitability and valuation concerns. Rocket Lab stock has rallied about 53% year-to-date and jumped 697% over the past year.
Overall, Wall Street has a Moderate Buy consensus rating on Rocket Lab stock based on eight Buys and four Holds. The average RKLB stock price forecast of $30.60 indicates a downside risk of 21.3% from current levels.
