Rocket Lab USA Inc. (NASDAQ:RKLB) saw its stock climb 3% in Monday’s pre-market session, as investors showed renewed interest in SpaceX rivals amid a deepening public feud between Elon Musk and President Donald Trump.
The boost in Rocket Lab shares comes as Tesla Inc. (NASDAQ:TSLA) dropped nearly 7% after Musk revealed plans over the weekend to launch a new political movement dubbed the “America Party.” The announcement rattled Tesla shareholders, sparking renewed concerns over Musk’s ability to remain focused on the electric vehicle giant.
Tensions between Musk and Trump escalated on Sunday after the president publicly dismissed Musk’s political aspirations as “ridiculous,” and questioned whether the Tesla CEO’s past consideration for a NASA leadership role might have posed a conflict of interest, given his vast investments in the space industry through SpaceX.
With Musk’s political profile drawing more scrutiny, analysts suggest the unfolding dispute could pose risks for SpaceX, especially regarding future government contracts—a potential vulnerability should Trump return to office.
Investors appear to be hedging their bets by shifting attention toward Rocket Lab, which has been steadily expanding its role in the aerospace and satellite launch sector. The company develops and launches rockets and spacecraft systems and is increasingly viewed as a rising competitor to SpaceX in select markets.