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Relativity’s first 3D-printed rocket aims to debut a new rocket fuel
Relativity can almost taste the vacuum of space. A substantial amount of work remains, but the startup continues to defy expectations with its relentless and methodical push towards the first orbital launch of a 3D-printed rocket.
Founded in 2015, the Los Angeles-based aerospace company has taken its few years of obligatory delays in stride while pursuing a 2020 debut for its (relatively) small Terran 1 rocket. In a world with dozens of serious rocket startups, missing one’s initial launch target is practically a rite of passage – the path to orbit is never as straight and bump-free as the highway on-ramps that are often promised in pitch decks. Relativity Space, however, is no average rocket startup.
Save for SpaceX, which operates in a league of its own, no other private rocket startup has come close to matching the $1.3 billion Relativity has raised to develop Terran 1 and the much larger Terran R. More importantly, in a recent interview with Aviation Week, CEO Tim Ellis (a former Blue Origin engineer) revealed that the company could be “weeks away” from the first launch of Terran 1, a rocket that is 85% 3D-printed by mass and could simultaneously debut a new kind of rocket fuel.
Once fully assembled, Terran 1 – weighing around 9.3 tons (~20,500 lb) empty and measuring 33.5 meters (110 ft) tall – will be the largest metal 3D-printed object in the history of the technology. From that perspective, it’s hardly surprising that Relativity Space is a few years behind schedule. In fact, it’s odd that the startup isn’t more delayed, and it’s even more impressive that Terran 1’s first launch campaign has gone as smoothly as it has.
Slow, Smooth and Fast
Terran 1 Flight 1’s booster stage and upper stage both arrived at the company’s leased Cape Canaveral Space Force Station LC-16 pad sometime in May 2022. Terran 1’s first stage came directly from the California factory. The second stage (S2), however, first shipped to a Mississippi test stand a few months prior and, on its first try, completed a full-duration multi-minute static fire test known as a mission duty cycle (MDC) – about as close as it’s possible to get to replicating orbital upper stage operations on the ground. The flawless MDC was preceded by a number of simpler precursor tests, of course, but the rocket performed more or less as expected throughout the entire qualification program. If Terran’s second stage ignites again, it’ll be at the edge of space.
Since June, the critical path for Terran 1’s launch debut has thus been qualifying the first finished Terran booster. Rather than modify its Mississippi test facilities, Relativity decided to temporarily modify its heavily upgraded LC-16 pad to support booster qualification testing. Thanks to the heroic work of a shockingly small team of five people, the pad was ready to kick off testing as soon as the Terran 1 booster arrived in Florida. Even more surprisingly, senior manager Lorenzo Locante says that LC-16 – practically a new pad after Relativity’s extensive modifications – has “performed perfectly” during every booster qualification test attempted thus far.
That testing has included pneumatic proofing (an ambient-temperature gas pressure test), possible cryogenic proof tests, multiple rounds of propellant loading, preignition testing of its nine Aeon engines, and multiple spin-start tests (the last step before static fire testing) with the same engines. Given that LC-16 and Terran 1 must handle cryogenic oxidizer (liquid oxygen) and cryogenic fuel (liquid methane), which can easily create a flammable and bomb-like mixture of gases from even the smallest of leaks, it’s difficult to emphasize just how difficult it is to ensure that a complex launch pad and rocket perform nominally during their first joint testing.
According to engineers onsite during a private Teslarati tour of Relativity’s Florida launch facilities, Terran 1 S1’s next goal is to fully ignite its Aeon engines. After one or more successful static fires, the booster will be integrated with the upper stage and nosecone for a final full-duration static fire test that will also double as a full wet dress rehearsal (WDR). Testing the fully-integrated Terran 1 rocket will only be possible once LC-16’s full strongback and launch mount (also known as a transporter/erector) is completed, but that final piece of the puzzle should be ready any day now.
De Terra Ad Astra
The coming weeks will likely be some of the company’s riskiest and most difficult yet. If the rocket and LC-16 continue to operate as smoothly as they have been, however, there’s a nonzero chance that Terran 1 could beat the likes of SpaceX (Starship), Blue Origin (New Glenn), and the United Launch Alliance (Vulcan Centaur) to the punch to become the first methane and oxygen-fueled rocket in history to attempt an orbital launch.*
*While SpaceX’s Starship is technically the first large-scale suborbital methalox rocket to attempt (and complete) a launch, there has never been an orbital methalox launch attempt.
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Capable of carrying up to 1.25 tons (~2750 lb) to low Earth orbit for as little as $12 million, Terran 1 also has a shot at becoming the first new privately-developed 1-ton-class rocket of any kind to successfully reach orbit. On that front, though, Relativity is in a neck-and-neck race with Firefly Aerospace and ABL Space, both of which intend to launch similarly-sized rockets at some point in the next few months. It’s never been less clear who will cross the finish line first but one would be hard-pressed to count Relativity out.
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Elon Musk has declared that SpaceX has effectively solved one of Starship’s most persistent engineering challenges: the reliability of its heat shield tiles.
During the company’s first-ever Earnings Call, the SpaceX CEO stated:
“I don’t want to jinx it or anything, but I think I would call the heat shield problem solved at this point. All indications from data and visual inspection is we have solved it. That doesn’t mean we won’t make improvements, but we do not see any technical obstacles to achieving rapid reusability at this point.”
Starship’s heat shield consists of roughly 18,000 hexagonal ceramic tiles covering the windward side of the upper stage. These tiles form the thermal protection system that shields the vehicle’s stainless-steel structure from the extreme heat of atmospheric reentry.
Elon says he believes the heat shield problem with Starship is currently solved.
He called it “arguably the single biggest problem” pic.twitter.com/eEE9vM5zlz
— TESLARATI (@Teslarati) August 4, 2026
During descent, atmospheric friction generates temperatures exceeding several thousand degrees Celsius and creates plasma flows capable of melting unprotected metal. The tiles absorb, radiate, and insulate against this energy, allowing the vehicle to survive and potentially fly again. Without a durable heat shield, full and rapid reusability, the cornerstone of Starship’s design for frequent launches, satellite deployments, and deep-space missions, would remain impossible.
The tiles have long been a source of difficulty. On earlier test flights, a significant number of tiles detached during ascent due to vibration, aerodynamic loads, and imperfect attachment methods using pins and adhesives. Gaps between tiles allowed hot plasma to infiltrate, causing secondary damage and hot spots on the underlying structure.
These issues echoed challenges faced by NASA’s Space Shuttle, whose ceramic tiles required extensive, labor-intensive inspections and replacements between missions, preventing rapid turnaround. SpaceX has iteratively improved materials, standardized tile shapes, refined attachment techniques, added secondary ablative layers, and tested sealing methods such as “crunch wrap” felt to close gaps.
Progress was visible across Flights 10–12, with steadily better tile retention, yet questions remained about whether the system could support the minimal-refurbishment goal of rapid reuse.
Flight 13 on July 24 provided the decisive evidence. Ship 40 flew a deliberately more demanding profile with higher dynamic pressure to stress the heat shield beyond typical operational loads. It successfully deployed 20 operational Starlink V3 satellites, the first such payload on a Starship mission, performed an in-space Raptor engine relight, and executed a controlled reentry.
Elon Musk sheds two new bits of detail on Starship after 13th test launch
Cameras on six of the satellites and onboard sensors captured extensive imagery and data of the shield throughout the flight. The ship then achieved its softest splashdown to date in the Indian Ocean, remaining intact and floating rather than breaking apart or exploding as on prior missions. This allowed drone inspections and continuous telemetry of the heat shield in near-real time.
Post-flight analysis showed the majority of tiles remaining attached with only minor damage and limited plasma streaking at seams. Musk noted that the mission delivered “all the heat shield data we needed and then some.” Combined with visual inspections, these results underpinned his subsequent assessment that the core technical barriers to rapid reusability have been cleared. While refinements will continue, Flight 13 marked a pivotal step toward Starship’s operational future.
SpaceX COO Gwynne Shotwell outlined ambitious plans for Starlink Mobile during the company’s August 4 Earnings call, signaling a direct challenge to U.S. wireless giants like AT&T, T-Mobile, and Verizon.
Shotwell noted that the three companies generate roughly $600 billion in combined annual revenue. “I anticipate us to be able to acquire quite a few of their customers because I think our service will be better,” she said. “We will eliminate dead zones leveraging the satellites in orbit. It will be better during any natural disaster… I’m quite excited about Starlink Mobile.”
SpaceX President & COO Gwynne Shotwell on @Starlink Mobile and its impact on Verizon, AT&T and T-Mobile:
“Roughly, between them, $600 billion a year. I anticipate us to be able to acquire quite a few of their customers. Our service will be better. We will eliminate dead zones… pic.twitter.com/UYZUkrGc0L
— Sawyer Merritt (@SawyerMerritt) August 4, 2026
SpaceX intends to combine its satellite constellation with terrestrial infrastructure. The company has acquired about 65 MHz of spectrum from EchoStar and plans to deploy next-generation Starlink Mobile satellites in 2027, with upgraded service targeted for the end of that year.
Shotwell described the enhanced network, leveraging more satellites and spectrum, as potentially “100 times better” than the current direct-to-cell offering, which already supports basic texting and app-based voice/video in coverage gaps through partnerships. She also indicated plans for low-cost cellular base stations that could integrate with existing Starlink dishes, creating a hybrid system for broader capacity in urban, suburban, and rural areas.
For the general public, Starlink Mobile promises significant advantages. Satellite connectivity can fill gaps where traditional cell towers fail, delivering service in remote locations, mountains, or during outages caused by storms, wildfires, or infrastructure damage—conditions in which ground networks often collapse.
Users could enjoy more consistent coverage without relying solely on dense tower builds, potentially at competitive prices as SpaceX scales. The hybrid approach aims to support full mobile services, including higher-speed data, while working with unmodified smartphones over time.
These developments revive long-standing but unfounded rumors of a Musk-developed “Tesla phone.” Speculative claims of a “Pi Phone” or similar device with built-in Starlink connectivity have circulated for years on social media, often featuring fabricated images and details. Elon Musk has repeatedly denied any such plans, stating Tesla has no intention of entering the smartphone market unless forced by extreme circumstances with app stores.
No official product, filings, or development announcements have ever materialized; the rumors remain hoaxes.
The announcement quickly pressured telecom stocks. Shares of AT&T, Verizon, and T-Mobile fell between roughly 2 and 4 percent in after-hours and premarket trading as investors weighed the competitive threat from a hybrid satellite-terrestrial network.
While execution challenges remain—spectrum deployment, infrastructure rollout, and regulatory hurdles—Shotwell’s remarks mark SpaceX’s clearest signal yet of entering the consumer mobile market as a full competitor.
Venture capitalist Chamath Palihapitiya has cautioned investors shorting SpaceX shares, drawing a direct parallel to the intense short-selling pressure Tesla faced in its early public years.
Responding to reports of elevated short interest in the newly public rocket, satellite, and AI company, Palihapitiya noted that similar dynamics played out with Tesla, where aggressive short sellers ultimately “went broke.”
SpaceX (NASDAQ: SPCX) went public on June 12, 2026, in the largest IPO on record, pricing at $135 per share. Shares quickly surged to an all-time high of $225.64 just days later, briefly implying a valuation exceeding $2 trillion. The stock has since retreated sharply amid valuation concerns, lockup expiration fears, and broader market dynamics.
By early August, it traded near $108–$125, representing a roughly 50 percent decline from the peak and bringing the market capitalization closer to the $1.5–1.7 trillion range. On August 4, shares closed up more than 9 percent at $125.33 ahead of earnings before facing pressure in after-hours and premarket trading.
Short interest has climbed dramatically. According to S3 Partners data widely cited in market reports, short positions reached approximately 219.3 million shares by late July, about 34 percent of the limited public float of roughly 640 million shares, and represented a notional value of around $24.6 billion.
Utilization of shares available to borrow hit 95 percent, with borrow fees rising. This level of shorting exceeded the dollar value of short bets against Tesla at the time and built rapidly ahead of two catalysts: the company’s first post-IPO earnings and an August 6 lockup expiration that could free up to 911.5 million additional shares.
CEO Elon Musk has issued warnings of his own. In mid-July, as short interest approached one-third of the float, he posted that “the survival probability of firms who maintain a significant short position in SpaceX over time is very low,” reiterating his view that the company could ultimately be worth more than Earth if it achieves its goals.
On August 4, just before earnings, Musk responded to the latest short-interest data by saying, “I try to warn them, but they just double down.”
SpaceX delivered its first quarterly results as a public company after the close on August 4. Second-quarter revenue rose 92 percent year-over-year to $7.8 billion, beating consensus estimates near $6.8–6.9 billion.
The net loss narrowed to $541 million, or 9 cents per share, better than the roughly 23–24 cent loss expected. Starlink/connectivity contributed about $4.3 billion (up 66 percent), while the AI business generated $2.6 billion (up roughly 250 percent). Capital expenditures were heavy at $18.4 billion, largely tied to AI infrastructure. Management projected a $100 billion annualized revenue run rate by year-end 2026 and outlined a path toward $1 trillion in annual revenue by 2030.
The combination of Chamath’s historical reminder, Musk’s repeated alerts, and the company’s ambitious growth targets underscores the high-stakes debate surrounding SPCX. Short sellers are positioned for near-term supply pressure from the lockup, while long-term bulls point to Starlink scale, Starship progress, and AI compute expansion as reasons the bears may ultimately face the same fate as many early Tesla skeptics.
SpaceX has solved Starship’s biggest challenge, Elon Musk says
SpaceX is coming for wireless giants with Starlink Mobile
