Shares of Rocket Lab USA, Inc. (RKLB) plummeted 7.12% in Tuesday's pre-market trading session, following the company's announcement of a planned $750 million stock sale. The significant drop in share price reflects investors' concerns about potential dilution and the company's need for additional capital.

The space technology company, known for its Electron rocket and satellite manufacturing services, initially saw its shares fall by 3.5% in early pre-market trading. However, as the market digested the news, the sell-off intensified, leading to the more substantial 7.12% decline. This sharp downturn indicates that investors are reacting more negatively than initially anticipated to the stock sale announcement.

While Rocket Lab has not provided specific details on how it plans to use the proceeds from the stock sale, such large capital raises are often viewed as a sign that a company may be facing financial challenges or preparing for significant expansion. The market's reaction suggests that investors may be concerned about the potential impact on existing shareholders and the company's long-term financial strategy. As trading progresses, it remains to be seen how this move will affect Rocket Lab's market position and investor confidence in the space technology sector.