Rocket Lab Says It Has 'More Upside' on Rocket Prices

Rocket Lab USA Inc. (NASDAQ: RKLB ) isn’t just seeing strong demand for its next-generation Neutron rocket. The company believes that demand could give it more pricing power as the launch market remains constrained. Rocket Lab brought Neutron to market with an average selling price of $50 million to $55 million, Chief Financial Officer Adam Spice said during the company’s second-quarter earnings call. The company also committed to avoiding significant discounts on early launches — and says it has stuck to that promise. More importantly, management now sees room for prices to move higher. "We feel very good, though, about where the market is from a supply versus demand perspective," Spice said. "I think right now the view is that we see more upside to ASPs than certainly to anything considered down or sideways." Neutron Could Get More Expensive ASP, or average selling price...