Rocket Lab USA, Inc. (RKLB) shares are soaring 9.48% in intraday trading, as investors speculate on potential benefits from the escalating feud between Tesla CEO Elon Musk and former President Donald Trump. The space launch service provider is attracting attention as it positions itself as an alternative to Musk's SpaceX, amid growing political controversy.
The surge in Rocket Lab's stock price comes after Musk announced plans to form a new political party, dubbed the "America Party," to challenge both Republicans and Democrats. This move has drawn criticism from Trump and sparked concerns about potential government contract losses for Musk's companies, including SpaceX. Investors appear to be betting that Rocket Lab, often described as a "mini-SpaceX" with both launch and satellite building capabilities, could benefit from any fallout in the space industry.
While Rocket Lab's market position is still far from that of SpaceX, which handles more than half of all global launches, the company is gaining traction among investors. Analysts expect Rocket Lab to generate about $575 million in revenue by 2025. However, market observers caution that political spats alone are not a solid basis for investment decisions, as relationships and circumstances can change rapidly in the volatile world of politics and technology. The stock's performance in the coming days may provide further insight into the market's perception of Rocket Lab's potential amid the ongoing Musk-Trump feud.
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