Shares of Space Exploration Technologies gained after the Federal Aviation Administration said it plans to pullback regulatory burdens to streamline commercial space launch and reentry licensing.

SpaceX stock rose 6.6%, to $131.45, midday Friday.

The FAA said it would overhaul its licensing framework in 2027 to keep pace with rapid commercial space innovation, with a goal of 1,000 launches a year by 2030. The U.S. was responsible for 217 of the 329 commercial space launches worldwide in 2025.

The gains came after shares of Elon Musk-led SpaceX and Tesla fell sharply in premarket trading Wednesday after Democratic candidates prevailed in a majority of their races in the midterm elections. Tesla shares on Friday also gained 5% after Musk said the company would wind-down its Cybertruck production.

Shares of several other space companies, including Rocket Lab, Firefly Aerospace and AST SpaceMobile also surged Friday after the proposed pullback in regulations on Friday.

Firefly and AST SpaceMobile reached a $1.3 billion agreement in which Firefly would supply rocket engines and license its propulsion technology to AST SpaceMobile.