Rocket Lab USA, Inc. (RKLB) shares surged 5.05% in early trading on Tuesday, as investors reacted to a Reuters report detailing how SpaceX’s increasing focus on its own Starlink satellites is creating a launch bottleneck for the broader space industry, positioning Rocket Lab as a key beneficiary.

The report highlighted that SpaceX has been reserving more space on its Falcon 9 rockets for Starlink missions, with the share rising to 79% of the manifest so far in 2026. As a result, at least seven spacecraft companies have been told Falcon 9 is fully booked until 2028 or 2029, forcing them to seek alternative launch providers. Rocket Lab, which is second to SpaceX in launch rate, is developing a fully reusable Neutron rocket and is in the process of acquiring satellite communications firm Iridium for $8 billion. Iridium’s CEO noted that the deal would allow the company to deploy its next-generation satellites more cost-effectively and faster, underscoring Rocket Lab’s growing capabilities.

Rocket Lab CEO Peter Beck emphasized that the company’s business model is distinct from SpaceX’s, as it also supplies satellite components to customers. “If nobody can launch anything, all of those components businesses dry up too. So we’re very self-interested to make sure that everybody else launches,” Beck said. With SpaceX increasingly prioritizing its own payloads, Rocket Lab’s role as a reliable independent launch provider is drawing renewed investor attention.