Why Rocket Lab (RKLB) fell 13.25%
Rocket Lab (RKLB) fell 13.25% on November 5, 2026 — Space & Defense selloff drags Rocket Lab lower.
What happened
Tesla fell 12% and SpaceX 9% after the Democratic midterm sweep put the SpaceX-Tesla merger on "a much tougher regulatory roadmap." Rocket Lab fell with the group, not on any news of its own.
Why it moved
Rocket Lab has no merger of its own, but it trades as a high-beta proxy for the SpaceX story. When the market cuts the odds of the SpaceX-Tesla deal, the whole space basket de-rates together, and a 13% drop is that beta…
Why it matters
Space & Defense has been priced on SpaceX-Tesla merger hopes. This selloff shows how much of the group's multiple rests on that one narrative.
What would break the thesis
A clearer regulatory path for the merger would pull the group back up. If Rocket Lab's own launch and contract news keeps flowing, the basket-driven drop may prove overdone.