SpaceShipOne, commanded by test pilot Brian Binnie touched down on a section of the Mojave desert after going beyond the Earth's atmosphere and reaching more than 114 kilometres Monday.
During its nearly 90-minute flight that took it to the edge of space, the craft reached speeds of up to 3,500 km per hour before going through the Earth's atmosphere.
The flight secures SpaceShipOne the Ansari X Prize for the first non-government team to fly three people, or the equivalent weight, to at least 100 km in altitude and do it again within two weeks, said Xinhua. The first flight was on Wednesday.
Initiated to galvanise private space travel, the X-Prize is administered by the Missouri-based X-Prize Foundation, and funded by the Dallas based Ansari family.
"We are proud to announce that SpaceShipOne has made two flights to 100km and has won the Ansari X Prize," said Foundation president Peter Diamandis.
"What we finally have here, after 40 years of waiting, is the beginning of the personal spaceflight revolution."
"It's a fantastic view; it's a fantastic feeling. There is a freedom there and a sense of wonder that - I tell you what - you all need to experience," said Binnie.
According to the BBC, the development of SpaceShipOne was funded by Microsoft co-founder Paul Allen, who is said to have sunk more than $20m into the project.
"What's going to happen a few years down the road when space tourism is available for everyone is going to be amazing," he said. "I'm looking forward to that day and hopefully we'll all be in space before you know it."
Aviation pioneer Burt Rutan, who conceived SpaceShipOne and whose company Scaled Composites built the vehicle, said he was "so proud of my team," the BBC said.
The flight followed the pattern of previous SpaceShipOne missions. The rocket plane was first carried to a launch altitude of 15km by the White Knight aircraft, before being launched.
More than two dozen teams around the world are involved in the competition.
