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US Air Force awards SpaceX $20m contract to support its biggest spy satellites

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Slipping beneath the watchful eye of many skilled defense journalists, the government contracting database FPDS.gov indicates that the US Air Force awarded SpaceX more than $20 million in November 2017 to conduct a design study of vertical integration capabilities (VIC). Describing what exactly this means first requires some background.

Vertical whaaaat?

The flood of acronyms and technical terminology that often follow activities of the Federal government should not detract from the significance of this contract award. First and foremost, what exactly is “vertical integration” and why is significant for SpaceX? Not to be confused with more abstract descriptions of corporate organization (vertical integration describes one such style), integration here describes the literal process of attaching satellite and spacecraft payloads to the rockets tasked with ferrying them to orbit.

Likely as a result of its relative simplicity, SpaceX has used a system of horizontal integration for as long as they have been in the business of launching rockets, be it Falcon 1, Falcon 9, or Falcon Heavy. In order to integrate payloads to the rocket horizontally, SpaceX has a number of horizontal integration facilities (HIF) directly beside each of their three launch pads – two in Florida, one in California. After being transported from the company’s Hawthorne, CA rocket factory, Falcon 9 and Heavy boosters, second stages, payload fairings, and other miscellaneous components are all brought into a HIF, where they are craned off of their transporters (a semi-trailer in most cases) and placed on horizontal stands inside the building.

While in the HIF, all three main components are eventually attached together (integrated). The booster or first stage (S1) has its landing legs and grid fins installed soon after arrival at the launch site, followed by the mating of the first and second stages. Once these two primary components of the rocket are attached, the entire stack – as the mated vehicle is called – is once again lifted up by cranes inside the facility and placed atop what SpaceX calls the strongback (also known as the Transporter/Launcher/Erector, or TEL). A truly massive steel structure, the TEL is tasked with carrying the rocket to the launch pad, typically a short quarter mile trek from the integration facility. Once it reaches the pad, the TEL uses a powerful hydraulic lift system to rotate itself and its rocket payload from horizontal to vertical. It may look underwhelming, but it serves to remember that a complete Falcon 9/Heavy and its TEL are both considerably more than twice as tall as a basketball court is long.

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Once at the pad, the TEL serves as the rocket’s connection to the pad’s many different ground systems. Crucially, it is tasked with loading the rocket with at least four different fuels, fluids, and gases at a broad range of temperatures, as well as holding the rocket down with giant clamps at its base, providing connection points to transmit a flood of data back to SpaceX launch control. SpaceX’s relatively unique TEL technology is to some extent the foundation of the company’s horizontal integration capabilities – such a practice would be impossible without reliable systems and methods that allow the rocket to be easily transported about and connected to pad systems.

Still, after the Amos-6 mishap in September 2016, which saw a customer’s payload entirely destroyed by a launch vehicle anomaly ahead of a static fire test, SpaceX has since changed their procedures, and now conducts those static fire tests with just the first and second stages – the payload is no longer attached until after the test is completed. For such a significant decrease in risk, the tradeoff of an additional day or so of work is minimal to SpaceX and its customers. Once completed, the rocket is brought horizontal and rolled back into the HIF, where the rocket’s payload fairing is finally attached to the vehicle while technicians ensure that the rocket is in good health after a routine test-ignition of its first stage engines.

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Before being connected to the rocket, the payload itself must also go through its own integration process. Recently demonstrated by a flurry of SpaceX images of Falcon Heavy and its Roadster payload, this involves attaching the payload to a payload adapter, tasked with both securing the payload and fairing to the launch vehicle. Thankfully, the fairing is far smaller than the rocket itself, and this means it can be vertically integrated with the payload and adapter. The final act of joining and bolting together the two fairing halves is known as encapsulation – at which point the payload is now snug inside the fairing and ready for launch. Finally, the integrated payload and fairing are lifted up by cranes, rotated horizontally, and connected to the top of the rocket’s second stage, marking the completion of the integration process.

A different way to integrate

Here lies the point at which the Air Force’s $20m contract with SpaceX comes into play. As a result of certain (highly classified) aspects of some of the largest military satellites, the Department of Defense (DoD) and National Reconnaissance Office (NRO) prefer or sometimes outright require that their payloads remain vertical while being attached to a given rocket. The United Launch Alliance (ULA), SpaceX’s only competition for military launches, almost exclusively utilizes vertical integration for all of their launches, signified by the immense buildings (often themselves capable of rolling on tracks) present at their launch pads. SpaceX has no such capability, at present, and this means that they are effectively prevented from competing for certain military launch contracts – contracts that are often the most demanding and thus lucrative.

It’s clear that the Air Force itself is the main impetus pushing SpaceX to develop vertical integration capabilities, a reasonable continuation of the military’s general desire for assured access to orbit in the event of a vehicle failure grounding flights for the indefinite future. For example, if ULA or SpaceX were to suffer a failure and be forced to ground their rockets for months while investigating the incident, the DoD could choose to transfer time-sensitive payload(s) to the unaffected company for the time being. With vertical integration, this rationale could extend to all military satellites, not simply those that support horizontal integration.

Fittingly, the ability to vertically integrate satellites is likely a necessity if SpaceX hopes to derive the greatest possible value from its recently and successfully introduced Falcon Heavy rocket, a highly capable vehicle that the government is likely very interested in. Although the specific Air Force contract blandly labels it a “Design Study,” (FPDS.gov account required) its hefty $21 million award may well be far more money than SpaceX needs to design a solution. In fact, knowing SpaceX’s famous ability to develop and operate technologies with exceptional cost efficiency, it would not be shocking to discover that the intrepid launch company has accepted the design study grant and instead jumped head-first into prototyping, if not the construction of an operational solution. More likely than not, SpaceX would choose to take advantage of the fixed tower (known as the Fixed Service Structure, FSS) currently present at Pad 39A, atop which a crane and work platforms could presumably be attached

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Intriguingly, it is a real possibility that Fairing 2.0 – its first launch scheduled to occur as early as Feb. 21 – could have been upgraded in part to support present and future needs of the Department of Defense, among numerous other benefits. Fairing 2.0’s larger size may have even been precipitated by physical requirements for competing for and dealing with the largest spysats operating by the DoD and NRO, although CEO Elon Musk’s characterization of that change as a “slightly larger diameter” could suggest otherwise. On the other hand, Musk’s offhand mention of the possibility of significantly lengthening the payload fairing is likely aimed directly at government customers in both the civil and military spheres of space utilization. Time will tell, and it certainly will not hurt SpaceX or its customers if Fairing 2.0 is also considerably easier to recover and reuse.

Ultimately, it should come as no surprise that SpaceX would attempt to leverage this contract and the DoD’s interest in ways that might also facilitate the development of the company’s futuristic BFR rocket, intended to eventually take humans to the Moon, Mars, and beyond. As shown by both 2016 and 2017 iterations of the vehicle, it appears that SpaceX intends to use vertical integration to attach the spaceship (BFS) to the booster (BFR). While it’s unlikely that this Air Force contract will result in the creation of a vertical integration system that could immediately be applied to or replicated for BFS testing, the experience SpaceX would gain in the process of building something similar for the Air Force would be invaluable and essentially kill two birds with one stone.

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While now outdated, SpaceX’s 2016 Mars rocket featured a giant crane used for vertical integration. BFR appears to use the same approach. (SpaceX)

Follow along live as I and launch photographers Tom Cross and Pauline Acalin cover these exciting proceedings live and in person.

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Tom CrossTwitter

Pauline Acalin  Twitter

Eric Ralph Twitter

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Eric Ralph is Teslarati's senior spaceflight reporter and has been covering the industry in some capacity for almost half a decade, largely spurred in 2016 by a trip to Mexico to watch Elon Musk reveal SpaceX's plans for Mars in person. Aside from spreading interest and excitement about spaceflight far and wide, his primary goal is to cover humanity's ongoing efforts to expand beyond Earth to the Moon, Mars, and elsewhere.

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Tesla’s $2.9 billion bet: Why Elon Musk is turning to China to build America’s solar future

Tesla looks to bring solar manufacturing to the US, with latest $2.9 billion bet to acquire Chinese solar equipment.

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Tesla is reportedly in talks to purchase $2.9 billion worth of solar manufacturing equipment from a group of Chinese suppliers, including Suzhou Maxwell Technologies, which is the world’s largest producer of screen-printing equipment used in solar cell production. According to Reuters sources, the equipment is expected to be delivered before autumn and shipped to Texas, where Tesla plans to anchor its next phase of domestic solar production.

The move is a direct extension of a vision Elon Musk has been building for months. At the World Economic Forum in Davos this past January, Musk announced that both Tesla and SpaceX were independently working to establish 100 gigawatts of annual solar manufacturing capacity inside the United States. Days later, on Tesla’s Q4 2025 earnings call, he made the ambition concrete: “We’re going to work toward getting 100 GW a year of solar cell production, integrating across the entire supply chain from raw materials all the way to finished solar panels.”

Job postings on Tesla’s website reflect that same target, with language explicitly calling for 100 GW of “solar manufacturing from raw materials on American soil before the end of 2028.”

Tesla job description for Staff Manufacturing Development Engineer, Solar Manufacturing

Tesla job listing for Staff Manufacturing Development Engineer, Solar Manufacturing

The urgency behind the latest solar manufacturing target is rooted in a set of rapidly emerging pressures related to AI and Tesla’s own energy business. U.S. power consumption hit its second consecutive record high in 2025 and is projected to climb further through 2026 and 2027, driven largely by the explosion in AI data centers and the broader electrification of transportation. Tesla’s own energy division, which produces the Megapack utility-scale battery storage system, has been growing rapidly, and solar supply is a critical companion component for the business to scale. Musk has argued that solar is not just a clean energy option but the only one that makes economic sense at the scale AI infrastructure demands.

Tesla lands in Texas for latest Megapack production facility

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Ironically, the path to domestic solar independence currently runs through China. Sort of.

Despite Tesla’s stated push to localize its supply chain, mirrored recently by the company’s plan for a $4.3 billion LFP battery manufacturing partnership with LG Energy Solution in Michigan, Tesla still relies on China-based suppliers to keep its cost structure intact.

The $2.9 billion equipment deal underscores a tension Musk himself acknowledged at Davos: “Unfortunately, in the U.S. the tariff barriers for solar are extremely high and that makes the economics of deploying solar artificially high, because China makes almost all the solar.” Building the factory in America requires buying the machinery from the country Tesla is trying to reduce its dependence on.

Tesla named by U.S. Gov. in $4.3B battery deal for American-made cells

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The regulatory pathway adds another layer of complexity. Suzhou Maxwell has been seeking export approval from China’s commerce ministry, and it remains unclear how quickly that clearance will come. Still, the market has already reacted, with shares in the Chinese firms reportedly involved in the talks surged more than 7% following the Reuters report that broke the story.

Whether Tesla can hit its 2028 target of 100GW of solar manufacturing remains an open question. Though that scale may seem staggering, especially in such a short timeframe, we know that Musk has a documented history of “always pulling it off” in the face of ambitious deadlines that may slip. But, rest assured – it’ll get done.

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Elon Musk reveals date of Tesla Full Self-Driving’s next massive release

Initially planned for a January or February release, v14.3 aims to add some reasoning and logic to the decisions that Full Self-Driving makes, which could improve a lot of things, including Navigation, which is a major complaint of many owners currently.

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Tesla CEO Elon Musk revealed the date of Full Self-Driving’s next massive release: v14.3.

For months, Tesla owners with Hardware 4 have been utilizing Full Self-Driving v14.2 and subsequent releases. Currently, the most up-to-date FSD version is v14.2.2.5, which has definitely brought out mixed reviews. With releases, some things get better, and other things might regress slightly.

For the most part, things are better in terms of overall behavior.

However, many owners have been looking forward to the next release, which is v14.3, about which Musk has said many great things. Back in November, Musk said that v14.3 “is where the last big piece of the puzzle lands.”

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He added:

“We’re gonna add a lot of reasoning and RL (reinforcement learning). To get to serious scale, Tesla will probably need to build a giant chip fab. To have a few hundred gigawatts of AI chips per year, I don’t see that capability coming online fast enough, so we will probably have to build a fab.”

Initially planned for a January or February release, v14.3 aims to add some reasoning and logic to the decisions that Full Self-Driving makes, which could improve a lot of things, including Navigation, which is a major complaint of many owners currently.

Tesla Full Self-Driving v14.2 is a considerable improvement from early versions of the suite, but we have written about the somewhat confusing updates that have come with recent versions.

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Tesla Full Self-Driving v14.2.2.5 might be the most confusing release ever

They’ve been incredibly difficult to gauge in terms of progress because some things have gotten better, but there seems to be some real regression on a handful of things, especially with confidence and assertiveness.

Musk confirmed today on X that Tesla is already testing v14.3 internally right now. It will hit a wide release “in a few weeks,” so we should probably expect it by late April.

Overall, there are high hopes that v14.3 could be a true game changer for Tesla Full Self-Driving, as many believe it could be the version that Robotaxis in Austin, Texas, some of which are driverless and unsupervised, are running.

It could also include some major additions, including “Banish,” also referred to as “Reverse Summon,” which would go find a parking spot after dropping occupants off at their destination.

What Tesla will roll out, and when exactly it arrives, all remain to be seen, but fans have been ready for a new version as v14.2.2.5 has definitely run its course. We have had a lot of readers tell us their biggest request is to fix Navigation errors, which seem to be one of the most universal complaints among daily FSD users.

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Chattanooga Charge: Tesla and EV fans ready for the Southeast’s wildest Tesla party

From Cybertruck Convoys to Kid-Friendly Fun Zones: The Chattanooga Charge Has Something for Everyone

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Hundreds of like-minded Tesla and EV enthusiasts are descending on Chattanooga Charge this weekend for the largest Tesla meet in the Southeast. Taking place on March 20–22, 2026 at the stunning Tennessee Riverpark.

If you were there last year, you’ll know that it’s the ultimate experience to see the wildest Teslas in action, see the best in EV tech, and arguably the most fun – finally put a name to the face and connect with those social media buddies IRL! Oh, and that epic night time Tesla light show is a once-in-a-lifetime experience that will transform the Riverpark into something out of a sci-fi film that’s remarkably unforgettable and must be seen in person.

This year’s event takes everything up a notch, with over 100 Cybertrucks expected to be on display, many sporting jaw-dropping modifications and custom wraps that push the boundaries of what these stainless steel beasts can look like.

Whether you’re a diehard Tesla fan, EV supporter, or just EV-mod-curious, the sheer spectacle is worth the drive.

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The Chattanooga Charge doesn’t wait until Saturday morning to get started. The weekend technically kicks off Friday, March 20th, and the venue sets the tone immediately. Come share roadtrip stories over drinks at the W-XYZ Rooftop Bar on the top floor of the Aloft Chattanooga Hamilton Place Hotel, with sunset views over the city.

Come morning, nurse your hangover with a some good coffee, and convoy with hundreds of other Tesla and EV drivers through Chattanooga to the event for some morning meet and greets before the speaker panel starts and the food trucks fire up.

Tesla owner clubs travel from across the country to be here, not just to show off their vehicles,, but to connect, share, and celebrate a shared passion for the future of driving.

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Sounds like a plan to me. See you there, guys. Don’t miss it. Get your tickets at ChattanoogaCharge.com and join the charge. 🔋⚡

Chattanooga Charge is a premier Tesla and EV gathering inspired by the X Takeover, known as one of the largest Tesla event gatherings. What began as a bold idea from the team at DIY Wraps/TESBROS, hosted in their hometown of Chattanooga, Tennessee, the event quickly became a movement across social media. The first annual Chattanooga Charge united over 16 Tesla clubs from 16 states, proof that the EV community was hungry for something big in the South. Year after year, the event has grown in scale, ambition, and heart.

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