Honda (HMC) Joins the $62B Space Race with Game-Changing Reusable Rocket Launch
Honda just fired its opening salvo in the space industry arms race—and Wall Street's already counting the zeroes.
The automaker-turned-aerospace contender unveiled a reusable rocket prototype, taking direct aim at SpaceX and Blue Origin's turf. No timid 'testing the waters' here—HMC's going straight for the $62 billion payload.
Why rockets? Because earthbound margins got too boring.
The launch puts Honda in an elite club of companies that can land boosters upright—a trick that took SpaceX years to master. Their secret sauce? Probably borrowed from the same engineers who make Civics run forever.
Analysts predict the move will send shockwaves through the sector. 'Either we're witnessing genius diversification,' quipped one fund manager, 'or the most expensive midlife crisis in corporate history.'
One thing's certain: When legacy manufacturers start playing with rocket fuel, someone's 10-K is about to get interesting.
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Honda shares are up 6% year-to-date, primarily driven by solid auto performance, so space is not yet a growth driver. Still, the successful test could signal more diversified revenue opportunities ahead.
Precision Test, Long-Term Vision
The rocket, developed by Honda R&D, reached an altitude of 271.4 meters and landed within 37 centimeters of its target. The 6.3-meter vehicle features flight control systems, retractable landing gear, and proprietary guidance algorithms, key elements that enhance reusability. The company began space research in 2021 and aims to achieve suborbital launch capability by 2029.
While the test vehicle is significantly smaller than current orbital rockets, the achievement signals a long-term strategy that could support Honda’s broader tech roadmap, including mobility, data services, and vehicle connectivity.
Expanding Into a High-Growth Market
The small satellite launch market is expanding quickly. According to industry estimates, the market is expected to grow from $9.6 billion in 2025 to over $62 billion by 2030. Growth is driven by demand from commercial constellations, government contracts, and applications in climate and defense. However, launch availability remains concentrated among a few providers.
SpaceX remains the dominant player, with over 500 missions completed and a full launch manifest. Honda’s rocket is not competing directly at the same scale, but its test adds to the momentum of private sector activity outside the U.S. and China. Other entrants like Rocket Lab (RKLB)and Blue Origin are also working on reusable systems in the small-to-medium payload category.
Long-Term Optionality for Investors
For investors, Honda’s test does not impact near-term earnings. However, it adds long-term optionality in a high-growth sector. The company’s Core capabilities in precision engineering and automation provide a solid foundation for competing in satellite deployment and related services, should commercialization proceed. In a broader context, the test reflects Japan’s push to develop private space capabilities and diversify beyond traditional automotive exports.
What Is HMC’s Smart Score?
Since Honda is lightly covered by Wall Street and lacks an active price target, examining its Smart Score provides additional insight into investor sentiment and technical trends. Honda (HMC) holds a Smart Score of 7, reflecting a neutral outlook with bullish blogger sentiment and positive crowd wisdom, balanced by a dip in hedge fund activity and flat news sentiment.
