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Relativity Space “closer and closer” to first launch of a fully 3D-printed rocket
Relativity Space, a Long Beach, California-based aerospace startup, aims to alter the manufacturing process of rockets forever by 3D-printing almost every piece of their orbital-class Terran rockets.
The company was co-founded in 2015 by CEO Tim Ellis (departing Blue Origin) and Jordan Noone (departing SpaceX), with both engineers leaving their positions at these industry giants with one goal in mind: build and launch the world’s first 3D-printed orbital rocket.
In the last two and a half years, the startup has managed to raise nearly $1.3 billion through private investors including Baillie Gifford, Blackrock, BOND, Fidelity, General Catalyst, and Mark Cuban. That amount of investment makes Relativity one of the most valuable and best-funded private aerospace companies in recent history – second only to Elon Musk’s SpaceX, which has raised more than $7.7 billion in about a decade.
Relativity’s rocket manufacturing facility, “The Factory of the Future,” is located in Long Beach, California, and is home to Stargate – the world’s largest 3D printer. According to Ellis, Stargate is capable of printing virtually all of the parts required for the world’s first 3D-printed rocket, Terran 1, and the first fully reusable 3D-printed rocket, Terran R, from raw material to flight in just 60 days. To accomplish that unprecedented feat and create the largest metallic 3D-printed structures ever attempted, Relativity has developed multiple proprietary alloys.
Beyond its extremely exotic manufacturing approach, Terran 1 is a fairly standard two-stage rocket primarily designed to launch small satellites to low Earth orbit (LEO). The first stage is powered by nine Aeon 1 engines, each producing around 23,000 pounds of force (100 kN) at launch and 25,400 lbf (113 kN) in the vacuum of space. The engine is powered by liquid methane (LCH4) and liquid oxygen (LOx) and is made out of several proprietary 3D-printed alloys. The second stage is powered by one Aeon 1 Vacuum engine capable of producing up to 28,300 lbf (126 kN) of thrust in a vacuum thanks to a much larger nozzle. Terran 1 is designed to carry up to 1,250 kilograms to a very low Earth orbit (LEO).
Relativity is growing quickly and has expanded to nearly 600 employees in just a few years. Aside from their headquarters and manufacturing facility in Long Beach, CA, Relativity has planted their flag at Cape Canaveral Space Force Station (CCSFS), where it’s developing Launch Complex 16 (LC-16) for Terran 1 and Terran R. There, a team of infrastructure engineers and technicians are currently building the launch facilities that will support Terran 1’s launch debut. A separate team at Mississippi’s NASA Stennis Space Center is continually testing the startup’s engines and rocket stages.
In a recent tweet, CEO Tim Ellis revealed that the company had completed a record nine successful Aeon engine tests in a single day. The CEO also stated that stage integration for Terran 1’s launch debut was making “amazing progress.”
Relativity had previously planned for Terran 1’s first launch to take place by the end of 2021. That debut has since slipped to “early 2022”, while the company hopes its far larger reusable Terran R rocket will debut in 2024.
Relativity was recently selected by NASA to be one of 12 companies to provide launch services for the agency’s Venture-Class Acquisition of Dedicated and Rideshare (VADR) missions, providing new opportunities for more risk-tolerant science and technology payloads and fostering a growing U.S. commercial launch market. “The VADR contract will provide a broad range of Federal Aviation Administration-licensed commercial launch services capable of delivering payloads ranging from CubeSats to Class D missions to a variety of orbits. These small satellites and Class D payloads tolerate relatively high risk and serve as an ideal platform for technical and architecture innovation, contributing to NASA’s science research and technology development.”
Tesla CEO Elon Musk posted a photo of himself standing with the Optimus production team inside Tesla’s Fremont factory, arms crossed amid workers in hard hats and safety vests. The image captures a pivotal industrial shift: the same facility space once dedicated to building Tesla’s flagship Model S sedan and Model X SUV is now home to the company’s humanoid robot manufacturing line.
Walking the Optimus production line in Fremont pic.twitter.com/ABS0tuRibW
— Elon Musk (@elonmusk) July 1, 2026
Tesla’s Fremont Factory, acquired in 2010 from the former NUMMI joint venture between Toyota and GM, has been the company’s original U.S. manufacturing hub since Model S production began in 2012.
The Model X followed soon thereafter. These premium vehicles offered lower annual volumes, recently around 30,000 combined, compared to the high-volume Model 3 and Model Y lines that continue around the site. Over their combined run, the S and X accounted for roughly 610,000 units.
In late January 2026, during Tesla’s Q4 2025 earnings call, Elon Musk announced the end of Model S and Model X production in Q2 2026. The final vehicles rolled off the line in early May. Rather than retooling for another vehicle, Tesla chose to convert the dedicated S/X assembly area into a dedicated Optimus Gen 3 production line.
Model 3 and Y manufacturing remains unaffected. Tesla’s official Fremont Factory page now lists Optimus alongside the 3 and Y as core products.
The conversion was executed with remarkable speed. After production stopped, crews dismantled the existing vehicle line and installed entirely new modular equipment—including lines sourced from Germany and dozens of sub-lines for actuators, batteries, and other components—in roughly four months.
Musk described the timeline as “insanely fast,” noting it would be unprecedented for any other manufacturer. Initial Optimus output is expected to ramp slowly due to the robot’s roughly 10,000 unique parts and the brand-new production processes involved. The Fremont line targets an eventual capacity of 1 million Optimus units per year.
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Optimus Development Timeline
- August 19, 2021: Optimus (then called Tesla Bot) formally announced at Tesla’s first AI Day. A concept video showed a person in a suit demonstrating the vision for a general-purpose humanoid capable of dangerous, repetitive, or boring tasks using the same AI architecture as Full Self-Driving.
- 2022: Early prototypes displayed. At the second AI Day in September, semi-functional units demonstrated walking across a stage and basic arm movements
- 2023: September videos showed improved capabilities, including sorting colored blocks, precise limb awareness, and holding a Yoda pose.
- 2024-early 2025: Factory integration videos showed Optimus navigating workspaces and handling objects like battery cells.
- January 2026: Gen 3 mass-production activities began at Fremont, with reports of over 1,000 Gen 3 units already operating inside the factory for real-world learning and AI training
- April 2026: Musk confirms Optimus production on converted Fremont line would begin in late July or August 2026. The Gen 3 reveal, originally eyed for Q1, was pushed closer to production start. A second, much larger Optimus factory at Giga Texas is under construction, with volume production targeted for Summer 2027 and long-term capacity of 10 million units annually
- July 1, 2026: Musk’s on-site visit and team photo confirm the Optimus line is operational and the transition is actively progressing
Tesla positions Optimus as potentially its largest project ever, leveraging vertical integration, AI expertise, and car-like manufacturing know-how to scale humanoid robots first for its own factories and later for broader industrial and consumer use.
The Fremont conversion serves as a critical proving ground for this ambitious new chapter in Tesla’s already-rich history.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla Optimus project fires up as Musk sees production line progress
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
