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Relativity Space reveals plans to rapidly upgrade 3D-printed Terran 1 rocket
Relativity Space has announced that it will only launch the first version of its small Terran 1 rocket a handful of times before upgrading the vehicle in ways that will aid work on a much larger, fully reusable rocket.
Relativity co-founder and CEO Tim Ellis revealed the news in a recent interview, explaining that while the original Terran 1 rocket is still an integral part of the company’s vision and success, it will mainly serve as a bridge to the larger and more capable Terran R – a rare rocket with the potential to compete head-to-head with SpaceX’s Falcon 9.
“We’ve always envisioned Terran 1 being a development platform,” stated Ellis in an interview with Ars Technica. The Terran 1 rocket, which is thrust into orbit using nine proprietary Aeon-1 engines is designed to carry payloads into Low Earth Orbit (LEO). The first launch of Terran 1 is anticipated to take place by the end of 2022, with Ellis stating that Relativity is “definitely launching this year.” Terran 1’s first launch won’t carry payloads, indicating its experimental nature, but it will be serving as the startup’s first orbital launch attempt.
Assuming the rocket’s debut is mostly successful, Terran 1’s second mission will carry a “Venture Class Launch Services” small satellite payload for NASA. The third and final mission for the first version of Terran 1 will also carry payloads, though Relativity has yet to reveal its customer(s).
Once completed, Ellis says Relativity will shift its focus away from the Aeon-1 engine setup on Terran 1’s booster. Instead, they will remove the nine Aeon-1 engines from the vehicle and replace them with a single 135-ton-thrust (~300,000 lbf) Aeon-R engine – seven of which will eventually power Terran R’s reusable booster.
When asked why the startup didn’t simply start with the Aeon-R engine, Ellis noted that developing a booster with nine smaller Aeon-1 engines was “definitely not the optimum choice in hindsight to get to orbit as simply and quickly as possible for the Terran 1 program.” He added, “But it’s been part of our plans to do a much larger reusable rocket for a long time. So we chose to do liquid oxygen and liquid methane engines, as well as the nine-engine configuration on Terran 1 so that we could learn as a company how to do something that complex early on before we had to go build this 20,000-kilogram payload-to-orbit vehicle.”
There are many benefits that come from using the single Aeon-R engine on Terran 1, including reduced cost, processes, and more capable rockets. By scaling down the number of engines from nine Aeon-1s to one Aeon-Rs, they are also scaling down the number of turbopumps, which will reduce labor and cost. The Aeon-R engine, seven of which will power the Terran R rocket, will also produce nearly ~300,000 pounds of thrust. This will provide the company with more capable small launch vehicles.
Ultimately, Relativity’s goal is to launch Terran R, a much larger, more powerful, and (in theory) fully-reusable rocket. Ellis stated that both the first and second stages of Terran R will be reusable, potentially allowing the rocket to directly compete with Falcon 9 – and maybe even the company’s fully-reusable Starship. SpaceX’s workhorse rocket has successfully launched 142 times and the company appears to be more confident in it than ever before. In 2022 alone, SpaceX hopes to launch an average of one Falcon rocket per week.
Despite the fact that SpaceX successfully landed its first Falcon booster in 2015 and reused a booster on a commercial launch in 2017, traditional competitors like Arianespace and ULA have done little to respond and continue to develop new rockets – Vulcan Centaur and Ariane 6 – that are fully expendable, substantially more expensive than SpaceX’s offerings, and still without a clear path to reusability. Alongside Blue Origin’s New Glenn vehicle and Rocket Lab’s Neutron, Relativity’s Terran R rocket may actually be able to compete with Falcon 9.
Ellis further revealed that Terran R already has at least one signed customer, with many others expressing interest behind the scenes. Though the company’s official timeline is incredibly ambitious, Relativity says Terran R could launch as early as 2024, giving the company less than three years to develop the giant rocket from scratch.
It is still unclear how either stage of Terran R will be recovered, nor how the rocket will integrate into the already existing launch facilities being built for Terran 1 at the Cape Canaveral Space Force Station’s (CCSFS) LC-16 pad. Nonetheless, Ellis and the entire Relativity team seem determined to deliver on their promises. Ellis didn’t shy away from bold and undeniable claims, either, stating that “we are definitely launching this year.” “I have no doubt about that…at this point, barring an act of nature or something going seriously wrong in stage testing.”
Tesla has apparently revised the policy it previously had listed for Full Self-Driving transfers on the newest All-Wheel-Drive Cybertruck that the company had sold for a steal price of just $59,000 earlier this year.
After initially stating that customers who bought the pickup would be able to transfer FSD purchases, Tesla recently changed the language in those terms and conditions to reflect that this would no longer be the case.
Tesla launches new Cybertruck trim with more features than ever for a low price
The adjustment in terminology has caused a handful of orderers to cancel their reservations due to the loss of FSD transfer:
Just cancelled my 59k CT order today. My screenshot from that day of order (feb 20th) clearly shows that it would be eligible.
Terms were retroactively modified. Our 2020 Y and 2023 S are just fine for now. pic.twitter.com/D9PFnId1B4
— Ryan Scanlan 👥 (@Xenius) June 8, 2026
Tesla said orders for the new Cybertruck AWD must be placed by March 31, 2026, to qualify for the FSD transfer. The language in the document from earlier this year explicitly states that they “may qualify” for the transfer program, but the date of March 31 is explicitly mentioned.
Additionally, Tesla Delivery Advisors reached out to some orderers of the AWD Cybertruck, who were told there was “an update to the eligibility of the Full Self-Driving (Supervised) transfer.” Tesla stated they could:
- proceed without the transfer,
- upgrade to a Premium or Cyberbeast trim and request an FSD Transfer
- cancel the order and be refunded the $250 order fee.
Tesla turning around and changing these terms will undoubtedly result in a handful of cancellations on the part of those who have placed an order for this truck. They could pay $99 per month for an FSD subscription, which is now the only option available, but having purchased the suite outright on another vehicle and being told the transfer policy would be upheld, only to have it cancelled, is a tough pill to swallow.
These moves were also made by Tesla just before deliveries were set to begin on the Cybertruck AWD configuration. Reservation holders have started receiving VINs for their trucks, and Tesla is preparing to hand over the first units.
It’s a disappointing move from Tesla that will undoubtedly make some of its fans who have bought the truck frustrated.
In the world of autonomous ride-hailing, there are only a handful of names. Among those few companies lies a strategy play by each to keep the opposition on their toes. Tesla, on the other hand, already tipped its hand at where it is headed next.
Tesla has signaled its next major push in the autonomous ride-hailing market by filing for an Autonomous Vehicle Network Company permit in Nevada (Docket 26-05015). Through Tesla Robotaxi, LLC, the company seeks approval to operate up to 5,000 robotaxis in Clark County, including high-traffic areas like Las Vegas and Henderson airports, within the first 12 months of launch.
This filing builds on Tesla’s earlier testing approvals from the Nevada DMV in September 2025 and preparations such as maintenance hubs in the Las Vegas area. Nevada represents a strategic expansion into a major tourist destination, where high visitor volumes could drive strong utilization and showcase the reliability of unsupervised autonomy to a broad audience.
We’d have to assume this means Tesla is targeting Las Vegas, and it’s a great move from a business perspective.
Vegas is such a melting pot of people from all around the country and the world. It will expose people from all corners of the globe to Tesla’s autonomy capabilities https://t.co/Qz3fQmhULF pic.twitter.com/Du5pj2RyWC
— TESLARATI (@Teslarati) June 6, 2026
Approval would mark a significant step toward commercial operations in a new state, following progress in Texas.
Tesla’s shareholder decks and earnings calls have clearly outlined these ambitions. In the Q4 2025 shareholder deck, the company listed planned Robotaxi coverage for the first half of 2026, explicitly naming Las Vegas alongside Phoenix, Miami, Orlando, and Tampa, with Dallas and Houston already advancing. Austin was noted as “ramping unsupervised,” while the Bay Area remained in safety-driver mode.
By Q1 2026, the deck updated statuses to reflect launches in Dallas and Houston, with “preparations underway” for the remaining cities, including Las Vegas. Paid Robotaxi miles nearly doubled sequentially in Q1, underscoring momentum even as broader timelines adjusted slightly for regulatory and operational readiness.
On earnings calls, CEO Elon Musk and executives have emphasized a phased rollout prioritizing safety. Unsupervised operations in Texas have shown strong results with no reported accidents or injuries in the program. Tesla continues groundwork in additional major U.S. metros through testing and permitting, positioning it to scale quickly once approvals clear.
This Nevada move aligns with Tesla’s vision of transforming from an EV maker into an AI and robotics leader. The forthcoming Cybercab, which started production at Giga Texas in April, is expected to eventually dominate the fleet, replacing many Model Y vehicles and driving down costs to enable affordable rides.
For investors and the industry, this signals Tesla’s intent to dominate key Sun Belt and tourist markets where weather, regulations, and demand favor rapid scaling. Success in Las Vegas could validate the model for denser urban and high-tourism environments, accelerating the shift toward a future where robotaxis generate meaningful revenue.
Las Vegas will also expand knowledge among the general public at Tesla’s capabilities, helping people experience driverless ride-hailing from several companies during their time on The Strip.
Investor's Corner
Tesla just did something in South Korea that no foreign carmaker has ever done
Tesla’s Model Y just became South Korea’s best-selling car, beating every domestic model in May.
Tesla did something last month that no foreign car has ever done in South Korea by outselling every vehicle in the country, domestic or imported, finishing the month with Model Y as the single best-selling car across the entire Korean market. According to data from the Korea Automobile Importers and Distributors Association released on June 4, the Model Y recorded 8,762 units sold in May, pushing the Kia Sorento into second place at 7,836 units and the Hyundai Grandeur into third at 5,183 units. It is the first time an imported vehicle has outsold every domestic model on a single-month basis.
Tesla imported 10,866 cars into South Korea in May, making it the top import brand for the fourth consecutive month. BMW followed at 6,555 units, less than two-thirds of Tesla’s total, while BYD registered just 1,032 units. The combined domestic sales of GM Korea, Renault Korea, and KG Mobility last month totaled just 7,019 units, meaning a single Tesla model outsold three Korean automakers combined.
Tesla FSD earns high praise in South Korea’s real-world autonomous driving test
South Korea has historically been one of the hardest markets for foreign automakers to crack. Hyundai and Kia together control close to 70% of the overall market and carry deep consumer loyalty built over decades. Tesla’s path into this market was an uphill battle due to high import duties, limited service infrastructure, and early skepticism about charging networks. In 2024, the Model Y was the best-selling imported car in South Korea with 18,717 units for the full year. By 2025, after the Juniper refresh, it cleared 50,000 units and took the top spot among all EVs.
Year to date, Tesla has a 250.8% increase in the country over the same period last year, and now holds a 30.8% share of the entire imported car segment for 2026. EVs as a category represented 48.6% of all imported passenger car registrations in May. As Teslarati has reported, the Juniper refresh brought meaningful improvements to range, interior quality, and ride refinement that addressed the most common criticisms of earlier Model Y versions. Those upgrades appear to be resonating in markets like South Korea where buyers compare Tesla directly against high end domestic competitors.
Tesla revises FSD transfer policy on new Cybertruck trim, causing cancellations
Tesla tipped its hand at where Robotaxi is heading next
