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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 pulls back the curtain on Cybercab mass production

Tesla’s Cybercab drives itself off the Gigafactory Texas line in a striking new production video.

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Tesla Cybercab production units rolling off the factory line in Gigafactory Texas (Credit: Tesla)

Tesla has provided a first look from inside a production Cybercab as it drove itself off the assembly line at Gigafactory Texas. The video footage, posted on X, opens on the factory floor with robotic arms and assembly equipment visible through the Cybercab windshield, and follows the car through a branded tunnel marked “Cybercab”, before autonomously navigating itself to a holding lot.

The first Cybercab rolled off the Giga Texas production line on February 17, 2026, with Musk writing on X, “Congratulations to the Tesla team on making the first production Cybercab.” April marked the official shift to volume production. The Giga Texas line is being prepared to produce hundreds of units per week, with 60 units already spotted on the Gigafactory campus earlier this month.


The Cybercab was first revealed publicly at Tesla’s “We, Robot” event in October 2024 at Warner Bros. Studios in Burbank, California, where 20 pre-production units gave attendees rides around the studio lot. Musk said he believed the average operating cost would be around $0.20 per mile, and that buyers would be able to purchase one for under $30,000. The two-seat design is deliberate. Musk noted that 90 percent of miles driven involve one or two people, making a compact two-passenger vehicle the most efficient configuration for a fleet-scale robotaxi. Eliminating rear seats also removes complexity and cost, supporting that sub-$30,000 target.

Tesla’s annual production goal is 2 million Cybercabs per year once several factories reach full design capacity. The Cybercab has no steering wheel, no pedals, and relies entirely on Tesla’s vision-based FSD system. What the video shows is the first evidence of that system working not as a demo, but as a production reality, driving itself off the line and into the world.

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Elon Musk talks Tesla Roadster’s future

Elon Musk confirmed the Roadster as Tesla’s last manually driven car, with a debut coming soon.

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Tesla Roadster driving along sunset cliff (Credit: Grok)

During Tesla’s Q1 2026 earnings call on April 22, Elon Musk made a brief but notable comment about the long-awaited next generation Roadster while describing Tesla’s future vehicle lineup. “Long term, the only manually driven car will be the new Tesla Roadster,” he said. “Speaking of which, we may be able to debut that in a month or so. It requires a lot of testing and validation before we can actually have a demo and not have something go wrong with the demo.”

That single statement is the entire Roadster update from yesterday’s call, and while it represents another timeline shift, it comes as no surprise with Tesla heads-down-at-work on the mass rollout of its Robotaxi service across US cities, and the industrial scale production of the humanoid Optimus.

The fact that Musk specifically framed the Roadster as the last manually driven Tesla is significant on its own. As the rest of the lineup moves toward full autonomy, the Roadster becomes something rare in the Tesla-sphere by keeping the driver in control. Driving enthusiasts who buy a $200,000 supercar are not doing so to be passengers. They want the physical connection to the road, the feel of acceleration under their own input, and the experience of controlling something with that level of performance. FSD, however capable it becomes, removes that entirely. The Roadster signals that Tesla understands this distinction and is building a car specifically for the people who consider driving itself the point.

Tesla isn’t joking about building Optimus at an industrial scale: Here we go

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The specs for the Roadster Musk has teased over the years are genuinely unlike anything in production. The base model targets 0 to 60 mph in 1.9 seconds, a top speed above 250 mph, and up to 620 miles of range from a 200 kWh battery. The optional SpaceX package takes it further, rumored to add roughly ten cold gas thrusters operating at 10,000 psi, borrowed directly from Falcon 9 rocket technology. With thrusters, Musk has claimed 0 to 60 mph in as little as 1.1 seconds. In a 2021 Joe Rogan interview he went further, stating “I want it to hover. We got to figure out how to make it hover without killing people.” Tesla filed a patent for ground effect technology in August 2025, suggesting the hover concept has not been abandoned. The starting price remains $200,000, with the Founders Series requiring a $250,000 full deposit. Some reservation holders placed those deposits in 2017 and are approaching a full decade of waiting.

With production now targeted for 2027 or 2028 at the earliest, the Roadster remains Tesla’s most audacious promise and its longest-running delay. But if what Musk is testing lives up to even half of what he has described, the demo alone should be worth waiting for.

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Tesla confirmed HW3 can’t do Unsupervised FSD but there’s more to the story

Tesla confirmed HW3 vehicles cannot run unsupervised FSD, replacing its free upgrade promise with a discounted trade-in.

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Tesla has officially confirmed that early vehicles with its Autopilot Hardware 3 (HW3) will not be capable of unsupervised Full Self-Driving, while extending a path forward for legacy owners through a discounted trade-in program. The announcement came by way of Elon Musk in today’s Tesla Q1 2026 earnings call.

The history here matters. HW3 launched in April 2019, and Tesla sold Full Self-Driving packages to owners on the understanding that the hardware was sufficient for full autonomy. Some owners paid between $8,000 and $15,000 for FSD during that period. For years, as FSD’s AI models grew more demanding, HW3 vehicles fell progressively further behind, eventually landing on FSD v12.6 in January 2025 while AI4 vehicles moved to v13 and then v14. When Musk acknowledged in January 2025 that HW3 simply could not reach unsupervised operation, and alluded to a difficult hardware retrofit.

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The near-term offering is more concrete. Tesla’s head of Autopilot Ashok Elluswamy confirmed on today’s call that a V14-lite will be coming to HW3 vehicles in late June, bringing all the V14 features currently running on AI4 hardware. That is a meaningful software update for owners who have been frozen at v12.6 for over a year, and it represents genuine effort to keep older hardware relevant. Unsupervised FSD for vehicles is now targeted for Q4 2026 at the earliest, with Musk describing it as a gradual, geography-limited rollout.

For HW3 owners, the over-the-air V14-lite update is welcomed, and the discounted trade-in path at least acknowledges an old obligation. What happens next with the trade-in pricing will define how this chapter ultimately gets written. If Tesla prices the hardware path fairly, acknowledges what early adopters are owed, and delivers V14-lite on the June timeline it committed to today, it has a real opportunity to convert one of the longest-running sore subjects among early adopters into a loyalty story.

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