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SpaceX Receives Pentagon Help To Develop New Rocket Engine

SpaceX has been awarded a Pentagon contract for development of its next generation Raptor rocket engine, which is 6 times more powerful than the Merlin engine it uses now.

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SpaceX Falcon 9 Launch

The U.S. Department of Defense has announced a $33.7 million dollar contract awarded to SpaceX for the development of the Raptor rocket propulsion system prototype as part of the Evolved Expendable Launch Vehicle (EELV) program. The Raptor engine burns a mixture of liquid methane and liquid oxygen, and designed to produce six times the thrust of the Merlin engines SpaceX recently used on its historic mission that saw its first stage rocket land itself back on earth from orbit. Here’s why that’s important to SpaceX.

Currently, virtually all large military satellites launches are done by the United Launch Alliance, a consortium made up of Lockheed Martin and Boeing. In 2013, ULA was awarded a $1.1 billion contract for multiple launches using Lockheed Martin’s Atlas V or Boeing’s Delta IV rockets. SpaceX wants a piece of that pie.

According to Motley Fool, both ULA rockets use RD-180 engines purchased from Russia’s Energomash, which is majority owned by the Russian government. After Russia’s 2014 actions in Crimea, the US slapped economic sanctions on it and Energomash. They in turn decided they would not sell any more rocket engines to ULA. The US Congress responded to that by prohibiting the US military from using any Russian rocket engines to launch its satellites.

But Houston, we have a problem. No rocket engines means no satellite launches. ULA placed its hopes on either Blue Origin or Aerojet Rocketdyne coming up with a new rocket engine to replace the RD-180 it can no longer buy from Energomash, but that process could take 3 or 4 years to complete.

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So Congress has relented somewhat. Buried in the more than 1,000 page appropriations bill approved just before Christmas, it gave ULA approval to buy a supply of RD-180s — just enough to keep it in the military launch business for the time being. But clearly, America needs American made rockets for its various space programs going forward.

SpaceX-Falcon-Heavy

“SpaceX Falcon Heavy will be the most powerful operational rocket in the world by a factor of two” [Source: SpaceX]

Enter SpaceX, which received authorization to bid for Pentagon business last year. The next generation Raptor engines will be used to power the upcoming Falcon 9 “heavy lift” and “super heavy lift” rockets. The more powerful Falcon 9 could be used in place of the traditional satellite launching vehicles from Lockheed and Boeing. That would open the door for lucrative government contracts to flow to SpaceX instead of ULA.

There is a lot of money up for grabs launching satellites for the military over next several years. SpaceX has been funding its Raptor engine program out of its own pocket up until now, but under terms of the new contract, the Pentagon will provide $1 in development funding for every $2 invested by SpaceX.

Lockheed and Boeing might be giving way to the Aerospace upstart. SpaceX, like every venture Elon Musk is involved with, will put every ounce of effort into getting to the finish line ahead of everyone else.

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Tesla removes Model S and X custom orders as sunset officially begins

In a significant development that marks the beginning of the end for two of its longest-running models, Tesla has removed the custom order configurator for the Model S sedan and Model X SUV from its website.

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Credit: Tesla

Tesla has officially started the “honorable discharge” of the Model S and Model X with a massive move, removing the two vehicles from Custom Orders and only offering inventory options.

It is the latest move Tesla has made to pull the Model S and Model X from its lineup, a decision CEO Elon Musk announced during its last quarterly earnings call.

Tesla brings closure to flagship ‘sentimental’ models, Musk confirms

In a significant development that marks the beginning of the end for two of its longest-running models, Tesla has removed the custom order configurator for the Model S sedan and Model X SUV from its website.

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As of April 1, visitors to tesla.com/model-s and tesla.com/modelx are now redirected exclusively to limited inventory listings rather than a design studio, allowing buyers to select paint, wheels, interior options, or performance upgrades. Only pre-built vehicles currently in stock are available for purchase or lease.

Tesla CEO Elon Musk confirmed the change directly on X, posting: “Custom orders of the Tesla Model S & X have come to an end. All that’s left are some in inventory.”

We will have an official ceremony to mark the end of an era.” Accompanying the statement was a throwback photo from the Model S production launch in 2012, underscoring the emotional weight of the decision.

Musk had first signaled the phase-out during the company’s Q4 2025 earnings call in January, describing it as time for an “honorable discharge” of the programs to free up resources at the Fremont factory for Optimus humanoid robot production and autonomous vehicle initiatives.

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The Model S, introduced in 2012, and the Model X, which followed in 2015, were instrumental in establishing Tesla as a premium electric vehicle leader.

The sedan offered class-leading range and acceleration, while the SUV’s signature falcon-wing doors became an iconic feature. Together, they proved EVs could compete in the luxury segment. Yet sales volumes have dwindled in recent years as Tesla prioritized higher-volume Model 3 and Model Y vehicles.

The flagships now represent a tiny fraction of overall deliveries, making continued custom production inefficient as the company accelerates toward robotaxis and next-generation platforms.

Prospective buyers are urged to act quickly. Remaining U.S. inventory vehicles—some nearly new—may include incentives such as lifetime free Supercharging, Full Self-Driving (Supervised) capability, and premium connectivity, depending on configuration.

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Leasing options start around $1,699 per month for select Model X units, though exact pricing and availability fluctuate. International markets, including Europe and China, have already seen similar restrictions in recent months.

The move aligns with Tesla’s broader strategy to streamline its lineup and redirect manufacturing capacity toward autonomy and AI-driven products. While some enthusiasts lament the loss of personalization, the company views the transition as necessary progress.

Tesla has indicated that once the current inventory sells out, new Model S and Model X vehicles will no longer be offered.

For loyal owners and fans, the promised “official ceremony” may provide a fitting send-off. In the meantime, the website change serves as a clear signal: the era of bespoke flagship Teslas has quietly concluded, and the focus has fully shifted to the future.

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SpaceX files confidentially for IPO that will rewrite the record books

SpaceX files confidentially for a record-breaking IPO targeting a $1.75T valuation and $80B raise, driven by Starlink growth and its xAI merger.

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Elon Musk’s rocket and satellite company submitted its draft registration to the U.S. Securities and Exchange Commission today for an initial public offering, targeting June at a $1.75 trillion valuation. This would be the largest in history.

SpaceX has filed confidentially with the SEC, first reported by Bloomberg. SpaceX would be valued above every S&P 500 company except Nvidia, Apple, Alphabet, Microsoft, and Amazon.

The filing uses a confidential process that allows companies to work through SEC disclosures privately before initiating a public roadshow. With a June target, official details through a formal prospectus is expected to go public in April or early May, after which SpaceX must wait at least 15 days before beginning investor marketing.

SpaceX IPO is coming, CEO Elon Musk confirms

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While SpaceX is best known for its Falcon 9 and Starship rockets, the $1.75 trillion valuation is anchored by Starlink, its satellite internet service. Starlink ended 2025 with 9.2 million subscribers and over $10 billion in revenue, which is a figure analysts project could reach a staggering $24 billion by the end of 2026. A February all-stock merger with xAI, Musk’s artificial intelligence venture, further boosted the valuation.

SpaceX officially acquires xAI, merging rockets with AI expertise

Bank of America, Goldman Sachs, JPMorgan Chase, and Morgan Stanley are lined up as senior underwriters. SpaceX is also considering a dual-class share structure to preserve insider voting control, and plans to allocate up to 30% of shares to retail investors, which is roughly three times the typical norm.

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Elon Musk hints at “official ceremony” with throwback photo to close Tesla Model S, Model X chapter

Elon Musk promises an official ceremony to mark the end of Tesla Model S and Model X production.

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lon Musk at the Tesla Model S production launch at the Fremont factory, June 2012. Photo shared by Musk on X, March 2026.

Tesla has officially begun winding down production of the Model S and Model X, sending farewell emails to U.S. customers on March 27 and updating the website to reflect the end of the line. Shoppers visiting Tesla.com now find only a limited set of Model S and Model X inventory units available for purchase, with no option to configure  a new factory build. The move formalizes what CEO Elon Musk announced on the company’s Q4 2025 earnings call in January, when he said it was “time to basically bring the Model S and X programs to an end with an honorable discharge.”

Musk posted on X a throwback photo of himself speaking at the Model S production launch in 2012, and noting “We will have an official ceremony to mark the ending of an era. I love those cars.”

The mention of an official ceremony is notable. Tesla has not held a formal farewell event for a vehicle before, and Musk’s wording suggests this will be something deliberate rather than a quiet line shutdown. Given that Musk’s X post shows a photo of him on stage with a microphone in front of an audience at the Fremont factory, it wouldn’t be too far-fetched to expect a closing ceremony to take place at the same location. Perhaps? Whether it becomes a public event, a private gathering for employees, or a livestreamed moment on X remains to be seen.

The Model S first went on sale nearly fifteen years ago and was Tesla’s first fully in-house designed vehicle, proving that an electric car could be fast, desirable, and capable of long distance on a single charge. The Model X followed in 2015, turning heads with its unmistakable and distinctive falcon-wing doors, while becoming one of the first all-electric SUVs on the market. Tesla’s two flagship vehicles would ultimately push legacy automakers to take all-electric transportation seriously and help fund development of the more affordable Model 3 and Model Y.

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By 2025, however, both models had been reduced to a rounding error in Tesla’s sales figures. Musk was direct about what comes next, stating “We are going to convert that production space to an Optimus factory. It’s part of our overall shift to an autonomous future.”

Elon Musk’s $10 Trillion robot: Inside Tesla’s push to mass produce Optimus

That shift is already underway. Tesla officially started Optimus Gen 3 production at its Fremont factory in January 2026, with the line targeting a run rate of one million units per year. The Gen 3 robot features 22 degrees of freedom per hand, runs on Tesla’s AI5 chip, and shares the same neural network architecture as Full Self-Driving. A dedicated Optimus factory at Gigafactory Texas is also under construction, with a planned annual capacity of 10 million units. The production lines that once built the Model S and Model X are being converted to support that ramp.

Tesla confirmed it will continue to support existing owners with service, software updates, and parts for as long as people own the vehicles. For buyers still interested in a new example, remaining U.S. inventory is discounted and the window is closing fast.

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