Rocket Lab USA, Inc. (NASDAQ:RKLB) shares are trading lower on Wednesday.
The company announced it is returning a previously flown Electron rocket first stage tank into the Electron production line for the first time in preparation for reflying the stage.
"This is the exciting final piece of the puzzle before Electron goes reusable," said Rocket Lab founder and CEO Peter Beck.
"Our key priority in pushing this stage back into the standard production flow for the first time is to ensure our systems and qualification processes are fit for accepting pre-flown boosters at scale," Beck added.
Rocket Lab said the step is a significant milestone in the company's development program to make Electron the world's first reusable small orbital launch vehicle.
Rocket Lab has achieved the retrieval of several Electron first stages post-mission by deploying parachutes for ocean splashdown, followed by collection onto a modified boat for return to the production site.
Boosters recovered earlier have been thoroughly analyzed to refine Electron's reusability. However, this marks the first instance of a tank being reintegrated into the standard production line for reflight.
"If this stage successfully passes and is accepted for flight, we'll consider opportunities for reflying it in the new year," the CEO added.
Price Action: RKLB shares are trading lower by 2.34% to $3.75 on the last check Wednesday.
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