Rocket Lab, SpaceX Shares Drop Despite FAA Deregulation Proposal
The Federal Aviation Administration (FAA) proposed a rule change aimed at reducing regulatory hurdles for rocket launches by waiving certain environmental review requirements. The move is intended to accelerate the pace of commercial space operations and align with recent Supreme Court guidance on infrastructure projects. However, shares of Rocket Lab (RKLB), AST SpaceMobile (ASTS), and SpaceX (SPCX) fell in response to the announcement. Rocket Lab dropped 9%, AST SpaceMobile declined by 7%, and SpaceX slipped 3%. The market reaction suggests that investors are currently more focused on capital flows than regulatory changes. For example, SpaceX raised $75 billion through its IPO earlier this year, while Rocket Lab is acquiring Iridium Communications for $8 billion with a significant loan backing. The FAA expects the number of commercial launches to rise from 204 in fiscal 2025 to over 500 annually by 2036. The proposed rule change now faces public comment before finalization, and no immediate operational changes are expected for Rocket Lab, AST SpaceMobile, or SpaceX.
