Rocket Labs Invades SpaceX Turf with NEW $5.6 Billion Military Contract—How the Turntables…

SpaceX’s little brother just snagged their seat at the $5.6 billion dollar table—and surprisingly, they didn’t even have to sneak through the back door to get in. In short, the U.S. Space Force tapped Rocket Lab—alongside four other players—to compete for national security launch contracts under its National Security Space Launch program, Phase 3, Lane 1. Translation: Rocket Lab officially leveled up from small cubesat company to “we trust you to launch our most classified, blow-up-the-world-if-it-fails payloads—oh, and we’ll back up the brinks truck too”. 

(Source: Giphy) 

So yeah, this is a big f*ing deal for Rocket Labs. But honestly, this didn’t come out of left field by any means. See, Rocket Lab built its rep launching tiny satellites on Electron, its compact workhorse with a “we’ll get your cubesat up there, no questions asked” vibe. They've done 63 launches already, which makes them one of the most reliable names in the small launch game.

But this new NSSL contract? It’s a big, classified, Pentagon-level cash cow that makes defense contractors drool and Wall Street foam at the mouth–and should directly fuel Rocket Labs' already soaring 356.96% 12 month gains. But now, to play in this big sandbox, Rocket Lab had no choice but to level up. Which is why Neutron—their reusable medium-lift rocket designed to haul up to 13,000 kg of government-grade hardware into space is the MVP here. It’s still waiting on its maiden launch (slated for late 2025), but that didn’t stop the Space Force from handing them a $5 million starter check and a pat on the back that says, “Don’t screw this up.”

(Source: Rocket Labs) 

Now let’s talk about what else this means. First, Rocket Labs just shoulder checked SpaceX, Blue Origin, and ULA as the new kid on the block. That alone is a massive credibility booster. It also means they’re now eligible for individual task orders—real, money-in-the-bank contracts—once Neutron proves it can actually fly. And when that happens? Rocket Lab graduates from the farm league to the majors. No more “small launch provider” asterisk. Bigly. 

Second, it’s a shot across the bow for the old guard. The Space Force isn’t just spreading the love; they’re intentionally making the field more competitive. They want options. They want lower prices. And they want innovation that doesn’t come with the legacy bloat and bureaucratic nonsense of the traditional aerospace giants. And come to find out, Rocket Lab fits that bill: small, fast-moving, and not afraid to step up to the plate.

(Source: IBD) 

But, but, but… while that all sounds promising, this ain’t a win yet. It’s simply a chance to win. Rocket Lab still has to actually get Neutron off the ground, and do it without embarrassing themselves. The first launch is expected late this year out of Wallops Island, Virginia. If it works? Game on. If it doesn’t? They might find themselves right back on the outside looking in. The government doesn’t give out second chances for national security payloads (Well, except if you’re Boeing LOL). 

Regardless, though investors liked the news. And they liked it alot. Rocket Labs popped 8% in premarket and is holding onto a 2%-3% gain so far this Friday. So yeah, investors are seeing this as a yuuuge win. But it’s also a massive test. Rocket Lab has spent the last few years talking a big game about becoming a true end-to-end space systems provider. Now they have the opportunity—and the pressure—to prove they’re not just another launch startup riding the train. 

(Source: Giphy) 

No more excuses. No more “we’re still building.” They’re in the room. Let’s see if they can stay there. Of course, only time will tell, but for now, place your bets accordingly and keep your eyes on this little engine that could. As always, stay safe and stay frosty, friends! Until next time… 

P.S. Just when you thought our beloved congressmen couldn’t get any greasier, one Republican lawmaker decided to YOLO $175k into a stock… right before a major FDIC announcement hit. Lucky timing? Insider edge? You be the judge. We broke it all down inside our recent Stocks.News premium article… click here to check it out ASAP. 

Stocks.News does not hold positions in companies mentioned in the article.