Rocket Lab's Electron: The Quiet Workhorse Powering Momentum
For months, Rocket Lab USA (NASDAQ: RKLB) has been stuck in a broad base, consolidating between $40 and $55. While breakout attempts have been met with resistance, most recently capped by a $750 million stock offering, the chart remains constructive. Shares continue to hold up favorably, setting up in a bullish formation that has traders watching the critical $55 resistance level. Positive news flow hasn’t slowed, either, as anticipation builds for the maiden launch of Neutron, Rocket Lab’s next-generation, medium-lift vehicle.
But while Neutron grabs the headlines, it’s the company’s smaller workhorse, Electron, that continues to serve as Rocket Lab's foundation and primary growth driver. The question for investors is whether news tied to Electron could be the catalyst that finally pushes the stock through its key resistance, even before Neutron takes flight.
Electron: The Backbone of Rocket Lab
Electron is Rocket Lab’s bread-and-butter rocket. The two-stage vehicle stands 18 meters tall, built from lightweight carbon composites. It’s powered by the company’s proprietary Rutherford engines, the first to use battery-powered electric turbo pumps. Capable of lifting 300 kg to low Earth orbit, Electron is designed for frequent, precise, and cost-effective launches of small satellites.
Launched from both New Zealand and the U.S., Electron has become a trusted option for commercial operators and government agencies alike. As of August, the company had launched its Electron rocket on 70 occasions, with four missions failing to reach orbit.
Electron’s customer base is wide-ranging, encompassing Earth-observation and IoT satellite companies, as well as NASA and the U.S. Space Force. Multi-launch agreements are a recurring theme, highlighting the vehicle’s dependability and flexibility. Rocket Lab’s nearly $1 billion backlog underscores the strength of demand, with Electron continuing to anchor revenue across both the launch services and space systems divisions.
Another Big Win: Synspective Expands
On September 29, Rocket Lab announced its latest milestone, a second multi-launch contract with Synspective, a Japanese leader in Synthetic Aperture Radar (SAR) satellite data. The new deal covers 10 dedicated Electron launches, bringing Synspective’s total commitments to 21.
This marks the single largest order of dedicated Electron missions from any customer to date. It also highlights Electron’s growing international footprint and sector leadership in the small-lift launch market. The first contract with Synspective was signed in June 2024, marking two agreements in just 18 months, a testament to both rising demand and Rocket Lab’s ability to deliver.
The satellites are scheduled to launch through the end of the decade, ensuring consistent mission flow and revenue visibility. For investors, it demonstrates how Rocket Lab is not just building hype around Neutron, but actively growing its existing core business.
Neutron Is the Big Catalyst, But Electron Remains the Foundation
There’s no denying Neutron has been the primary magnet for retail excitement. Rocket Lab is targeting late 2025 for Neutron’s maiden flight, with progress accelerating. Launch Complex 3 at Wallops Island, Virginia, is now ready, and Stage 2 has passed qualification milestones. If successful, Neutron would position Rocket Lab to compete head-on with SpaceX in the medium-lift category.
But while investors look ahead to Neutron, it’s essential not to overlook what Rocket Lab already has in operation. Electron continues to shine, and its growth is tangible. In Q2, launch services revenue surged 58.5% year-over-year, with demand and cadence for Electron reaching new highs. Launch backlog accounted for 41% of the company’s total, while space systems made up 59%.
One of Electron’s most significant advantages is flexibility. Rocket Lab can tailor launches to customer needs, whether that means rapid-fire schedules or precisely timed missions. In June, the company achieved a record feat: four launches in four weeks, including two missions from Launch Complex 1 just days apart.
So while Neutron remains the game-changing opportunity, it’s Electron that continues to pay the bills, drive momentum, and prove Rocket Lab’s execution capability.
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