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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.
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.
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 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.
More SpaceX News
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- SpaceX Delivers Jason-3 Satellite, Almost Sticks Falcon 9 Landing at Sea
- Watch as SpaceX Completes a Historic Rocket Landing
The Tesla Semi is entering a new Pilot Program with Paper Transport, LLC (PTI), a Wisconsin-based transportation provider. The company will test the Semi’s Long Range configuration through “dedicated operations within the Chicago market.”
Chicago presents an interesting challenge for the Semi, as it will be a colder-weather climate that will test the Semi’s ability to operate in lower temperatures and in potentially large accumulations of snow. This is something Tesla has been testing with the Semi in Alaska and even in Northern California during the colder months, but Chicago will present a truly tough midwestern winter.
Tesla Semi spotted on journey home after winter performance testing
PTI says it is using the Semi to evaluate its strategy of reducing transportation emissions while maintaining performance, reliability, and cost efficiency. These are major arguments for the Semi being introduced into new fleets.
CEO of PTI Tyler Ellison said:
“PTI has been a leader in sustainable transportation solutions for over 15 years. We take a consultative approach to helping customers identify and implement the right transportation solution for their network. Our partnership with Tesla expands our portfolio alongside renewable natural gas and intermodal, giving customers more ways to reduce Scope 3 emissions without compromising service or economics.”
PTI is far from the first company to adopt the Semi within a fleet, as Tesla entered strategic agreements with PepsiCo. and its subsidiary Frito-Lay for a Pilot Program that extended throughout the California region.
Tesla has let companies like those utilize the Semi to determine whether it would be suitable for their operations. Additionally, Tesla gets valuable information regarding the Semi’s performance, knowing what to improve and what is ideal for companies that will utilize the all-electric truck for regional and nationwide logistics.
PTI plans to utilize the Long Range configuration, which is priced at $290,000 and features a range of approximately 500 miles, a three-motor powertrain, up to 800 kW of drive power, and consumption of just 1.7 kWh per mile.
Tesla Semi pricing revealed after company uncovers trim levels
VP of Maintenance at PTI, Bryan Ellen, added:
“We are excited to partner with Tesla, leveraging their ever-evolving technology. We are bullish in our estimation of the parallels available between our dedicated model and the efficiency of their fully electric Class 8 tractor. We anticipate a growing synergy between our businesses as we work to facilitate this sustainable solution for our customers.”
PTI has logged more than 87 million miles using sources like compressed and renewable gas, but now is looking to take it a step further with fully electric operations.
Tesla revealed on Monday that it is building a new autonomous vehicle at Gigafactory Texas, its plant just outside of the City of Austin. This particular vehicle will be geared toward those who are in need of a wheelchair-accessible car that would require no human driver for operation.
According to a new report from Wired, Tesla’s Senior Policy Advisor, India Herdman, told members of the Washington D.C. City Council on Monday:
“We are in development for a purpose-built, wheelchair-accessible autonomous vehicle. We know that paratransit can be very difficult, and people who are confined to wheelchairs permanently should still be able to move around freely, so that is an active product being built by Tesla in Texas.”
This builds upon what CEO Elon Musk said last year on X, which confirmed the company was working on accessible rides within its Robotaxi platform, which currently is confined to the Model Y.
Absolutely
— Elon Musk (@elonmusk) September 19, 2025
Tesla is also developing the Cybercab, which started employee rides last week. However, this vehicle is not necessarily geared toward wheelchair accessibility.
That leaves a major gap in the autonomous ride-sharing program that Tesla is attempting to build; the company has been pretty clear that it does not want to complicate its manufacturing lines by bringing in a wide array of body styles.
However, it seems necessary to have something larger that could help transport people to appointments when they cannot drive. For wheelchair accessibility, the Robovan, which was unveiled at the “We, Robot” event in October 2024, seems to be the most ideal solution:
Herdman did not indicate whether she was referring to the Robovan or if Tesla is building yet another body style that is geared toward full autonomy but also caters to the handicapped.
Tesla might need to develop something specifically for the handicapped in order to align with the Americans with Disabilities Act, which prevents discrimination against people with disabilities in transportation services. Uber was hit with a lawsuit late last year for “refusing to reasonably modify its policies, practices, or procedures where necessary to avoid discriminating against riders with disabilities.”
Tesla would obviously like to avoid this.
It will be interesting to see what Tesla will do with this project, and whether it will introduce something new to the market or just continue with the Robovan.
Tesla weirdly confirmed that its steering wheel-less and pedal-less Cybercab vehicle is now in the process of giving employees rides, a huge milestone for the vehicle program.
But the entire thing was super strange. On Friday, Tesla released a video stating that there was “Cool news from Giga Texas” and that employees were now taking rides in Cybercabs that have no manual controls. The units seen on public roads are engineering vehicles that have manual controls inside, a necessity as Tesla moved through the testing phase.
However, Tesla removed the video and reposted it shortly after with a more vague title. It seems like the employee rides are still going, but the video was adjusted slightly. The initial upload showed employees doing things like watching movies and adjusting the climate, but these snippets were removed in the second upload.
Cool news from Giga Texas pic.twitter.com/gvbG456Tzw
— Tesla Robotaxi (@robotaxi) July 11, 2026
Both images below were uploaded with the first video, but were removed after Tesla re-uploaded the announcement. These are not available in the second upload
Credit: Tesla
Credit: Tesla
Nevertheless, the announcement from Tesla is that the Cybercab is operating with employees inside who can control the vehicle’s audio, video, climate, and destination settings through their smartphone app.
Tesla has already been testing Cybercab engineering units, but last month, it was able to self-certify for SAE Level 4, which would enable unsupervised self-driving in Texas. The company is moving toward that, and the plans have always been to launch Cybercab rides this year.
The Cybercab is potentially looked at as the next generation of Tesla’s mobility leg. For the past 15 years, the company has been known as somewhat of an automaker, among many other things. However, these passenger vehicles that Tesla has manufactured are now moving into a new realm, as they will eventually drive themselves with no supervision thanks to the Full Self-Driving suite.
The Cybercab is just the next step of that: a true vehicle developed for the sole purpose of ride-hailing. It has no human controls, it has only two seats, and it will get passengers from Point A to Point B with no awkward driver, no need for manual inputs, and with no stress.
Tesla is moving forward with other developments related to the Cybercab project as well. However, the big announcement will come when Tesla finally announces that it is launching Cybercab rides to the general public, something that it plans to launch either late this year or early 2027.
Tesla Semi enters new Pilot Program with interesting challenge
Tesla is building a wheelchair-accessible Robotaxi
