Rocket Lab Refuels To Compete With SpaceX

March 07, 2021 11:06 PM PST | By Mark O'Donnell

Rocket Lab Refuels To Compete With SpaceX

Rocket Lab’s Mission

Rocket Lab has recently announced that it will build bigger rockets to serve clients it predicts in the future who would have a need for more powerful rockets. Rocket Lab needs a cash injection to accomplish this feat.

Rocket Lab is expected to gain US$745 million in cash when it merges with Vector Acquisition in the second quarter of 2021.

Rocket Lab’s larger rockets would help the Company better compete with the likes of SpaceX moving forward. Rocket Lab has forecast its revenue to double in 2021 to US$69 million and eventually break even in 2023. Within six years, revenue and EBITDA are estimated to exceed US$1.5 billion and US$500 million, respectively.

After Rocket Lab’s merger, the Company will be valued at US$4.1 billion.

SpaceX

SpaceX is the only competitor of Rocket Lab that launches more rockets into orbit every year. Rocket Lab considers SpaceX as its closest competitor and frequently compares itself to its larger rival. The comparisons help illustrate Rocket Lab’s position in the market as well as where it is heading.

SpaceX generated close to US$1.2 billion and US$2.0 billion in revenue in 2020 and 2019, respectively.

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