Rocket Lab USA Inc ( RKLB ) shares are trading higher. The company on Thursday announced the completion of its second spacecraft for Varda Space Industries.

What Happened: Rocket Lab has completed testing and integration of its second Pioneer spacecraft for Varda. The companies plan to conduct in-space operations, reentry positioning maneuvers and deorbiting to recover Varda’s capsule. 

Rocket Lab launched its first spacecraft for Varda in June 2023. The companies successfully landed the re-entry capsule in February. Varda received permission from the FAA for the second launch earlier this month, making Varda the only company to ever secure a second reentry license.

“By leveraging Rocket Lab’s vertically integrated approach to spacecraft production, we can rapidly develop and deliver the highly capable and reliable spacecraft that Varda needs for their missions,” said Peter Beck, founder and CEO of Rocket Lab.

“This close collaboration allows us to push the boundaries of innovation, enabling Varda to create high-value products in microgravity and bring them back to Earth. We’re excited to work alongside Varda as they revolutionize manufacturing processes and open new markets through space.”

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Rocket Lab’s Pioneer spacecraft is designed to support large payloads, re-entry capabilities and dynamic space operations. Each spacecraft leverages Rocket Lab’s vertically integrated spacecraft components and subsystems.

It’s worth noting that Rocket Lab shares surged higher on Wednesday and broke through multi-year resistance around the $7.50 level.

Rocket Lab is seeing increased attention across various social platforms Thursday including Reddit’s r/wallstreetbets. Traders appear to be highlighting the technical setup, strength across Space stocks in recent months and high short interest in the name. 16.43% of Rocket Lab’s float is currently sold short, according to data from Benzinga Pro.

RKLB Price Action: Rocket Lab shares are up approximately 40% over the last month. The stock was up 1.51% at $8.75 at the time of publication Thursday, per Benzinga Pro.