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SpaceX granted additional $40.7M by U.S. Air Force for “BFR engine” development

The BFR spaceship pictured landing on Mars. (SpaceX)

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SpaceX has been granted an additional $40.7 million in funding by the U.S. Air Force for development of the company’s Raptor engine.

According to a U.S. Department of Defense contract published on October 19, 2017 on defense.gov, the new funding will go towards development of a new liquid oxygen and liquid methane engine for the department’s Evolved Expendable Launch Vehicle (EELV) program. Each Raptor engine is expected to have three times the thrust of SpaceX’s Merlin 1D engine that’s currently used in the Falcon 9. The heavy lift-capable engine will support the launch of heavier payloads including large military satellites into orbit, but also serve as the foundation for SpaceX’s Interplanetary Transport System, or more recently referred to as BFR.

The Department of Defense issued the following contract:

Space Exploration Technologies Corp., Hawthorne, California, has been awarded a $40,766,512 modification (P00007) for the development of the Raptor rocket propulsion system prototype for the Evolved Expendable Launch Vehicle program.  Work will be performed at NASA Stennis Space Center, Mississippi; Hawthorne, California; McGregor, Texas; and Los Angeles Air Force Base, California; and is expected to be complete by April 30, 2018.  Fiscal 2017 research, development, test and evaluation funds in the amount of $40,766,512 are being obligated at the time of award.  The Launch Systems Enterprise Directorate, Space and Missile Systems Center, Los Angeles AFB, California, is the contracting activity (FA8811-16-9-0001).

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It’s not clear how the Air Force will utilize the powerful Raptor engines after its completion which is expected to take place by the end of April 2018, but we do know that development will take place in various locations, including SpaceX’s headquarters in Hawthorne, California; NASA’s Stennis Space Center in south Mississippi; and the Los Angeles Air Force Base, home to its Missile Systems Center.

The powerful methane-oxygen Raptor engine is intended to be the workhorse for any larger launch vehicle. SpaceX has conducted several dozen successful hot fires at the company’s McGregor, Texas testing facilities. Tests ranged from just a few seconds to 100 seconds in duration, with the only limiting factor to test duration being the size of the propellant tank for fuel.

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Serial tech entrepreneur and SpaceX CEO Elon Musk recently spoke about Raptor engine development in his Mars-focused address at the International Astronautical Congress (IAC) in Australia.

“We already have now 1,200 seconds of firing across 42 main engine tests,” said Musk. “We’ve fired it for 100 seconds. It could fire for much longer than 100 seconds. That’s just the size of the test tanks.”

Musk also provided insight on why SpaceX engineers decided to reduce the originally intended size and thrust capabilities of the Raptor engine. Musk explained to fans during a recent Reddit “Ask me anything” that the SpaceX team simply “chickened out”, due to a variety of reasons.

 

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Gene has been obsessed with cars since before he could legally sit in the front seat. Writer, researcher, unofficial CS support, accountant, native suit guy when needed, and overall stick poker. He approaches every story the way he approaches a road trip: with too much enthusiasm, not enough planning, and a surprisingly good outcome. gene@teslarati.com

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Tesla launches new Model Y interior option

Produced at Gigafactory Shanghai, the update applies to all five-seat Premium Model Y configurations and started being seen on customer deliveries this week. The move marks the first major interior refresh for the compact crossover since its global debut.

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Credit: Tesla Malaysia | X

Tesla has rolled out a striking new interior choice for its best-selling Model Y in China, replacing the long-familiar white cabin with a fresh option: Zen Grey.

Produced at Gigafactory Shanghai, the update applies to all five-seat Premium Model Y configurations and started being seen on customer deliveries this week. The move marks the first major interior refresh for the compact crossover since its global debut.

The Zen Grey interior swaps the classic black-and-white contrast for a softer, more unified palette. Seats, door panels, and center console trim now feature a warm light-grey tone that covers far more surface area than before.

Previously, black accents on the console, door handles, and lower dashboard are now color-matched in the same pebbled vegan leather, creating a brighter, less clinical cabin.

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Tesla describes the material as durable and easy to maintain while delivering a noticeably more premium feel. Early photos and videos from Chinese owners show the new shade reflecting natural light beautifully, giving the spacious Model Y an even airier, more inviting atmosphere without sacrificing the minimalist design customers expect:

The change is not an added-cost upgrade but a direct replacement for the discontinued white interior on Shanghai-built vehicles. Customers configuring a new Model Y in China, Hong Kong, or Macau now see Zen Grey as the default light-colored choice.

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The update also flows to export markets supplied by Giga Shanghai, including Australia, New Zealand, South Korea, Japan, and the Philippines. Tesla has used its Chinese factory as an innovation hub before, and executives appear to be testing broader appeal with this subtler, warmer tone that avoids the high-maintenance reputation sometimes associated with bright white leather.

Beyond the interior, the refreshed Model Y from Shanghai includes minor exterior tweaks such as blacked-out badges on some trims and optional dark 20-inch wheels.

These changes arrive as Tesla faces stiff competition from domestic EV makers in its largest market. By refreshing the Model Y’s cabin without raising prices, the company is signaling continued commitment to value and constant improvement.

With over 1.2 million Model Y units already on Chinese roads, the Zen Grey launch gives existing owners a fresh talking point and new buyers another reason to choose Tesla. As deliveries ramp up this month, the updated interior is expected to become the dominant light-colored choice across the Asia-Pacific region.

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Tesla has not yet confirmed whether the Zen Grey will reach Fremont, Austin, or Berlin-built Model Ys, but Shanghai’s track record suggests the option could spread quickly if customer feedback remains strong.

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Tesla launches 200mph Model S “Gold” Signature in invite-only purchase

Tesla’s final 350-unit Signature Edition closes the book on two cars that changed everything.

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Tesla has announced a super limited Signature Edition run of 250 Model S Plaid and 100 Model X Plaid units as an invite only purchase in a bid to give its original flagship vehicles a proper send-off.

When the Model S first launched in 2012, the first 1,000 units sold were “Signature” editions that required a $40,000 deposit and cost nearly $100,000 each. Those early buyers were Tesla’s first real believers. This new Signature Edition deliberately echoes that moment, bookending a 14-year run with numbered collector hardware.

Both models are finished in an exclusive Garnet Red paint not available on any current Tesla production vehicle, with gold Tesla T badges up front, a gold Plaid badge and Signature badge at the rear, and a white Alcantara interior featuring gold Plaid seat badges, gold piping, Signature-marked door sills, and a numbered dash plate. The Model S adds carbon ceramic brakes with gold calipers. Every unit ships with Tesla’s Luxe Package, bundling Full Self-Driving (Supervised), four years of Premium Service, free lifetime Supercharging, and a Signature Edition key fob. Both are priced at $159,420, a roughly $35,000 premium over standard Plaid inventory.

The discontinuation is part of a broader strategic shift. At Tesla’s Q4 2025 earnings call, Musk described the decision as “slightly sad” but necessary, saying: “It’s time to basically bring the Model S and X programs to an end with an honorable discharge, because we’re really moving into a future that is based on autonomy.”

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The Fremont factory floor that built these cars is being converted to manufacture Optimus humanoid robots, with a target of one million units annually.

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Tesla FSD in Europe vs. US: It’s not what you think

Tesla FSD is approved in the Netherlands, but the European version differs from what US drivers use.

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Tesla FSD 14.3 [Credit: TESLARATI)

On April 10, 2026, the Dutch vehicle authority RDW granted Tesla the first European type approval for Full Self-Driving Supervised, making the Netherlands the first country on the continent to authorize Tesla’s semi-autonomous system for customer use on public roads.

As Teslarati reported, the RDW approval followed 18 months of testing, more than 1.6 million kilometers driven on EU roads, 13,000 customer ride-alongs, and documentation covering over 400 compliance requirements. Tesla Europe had been running public demo drives through cities like Amsterdam and Eindhoven since early 2026, giving passengers their first experience of the system on European streets.


The European version of FSD is not the same software US drivers use. The RDW’s own statement is direct, noting that the software versions and functionalities in the US and Europe “are therefore not comparable one-to-one.” We’ve compile a table below that captures the most significant differences between US-based Tesla FSD vs. European Tesla FSD that’s based on what regulators and Tesla have publicly confirmed.

Feature FSD US FSD Europe (Netherlands)
Regulatory framework Self-certification, post-market oversight Pre-market type approval required (UN R-171 + Article 39)
Hands requirement Hands-off permitted on highway Hands must be available to take over immediately
Auto turning from stop lights Available — navigates intersections, turns, and traffic signals autonomously Available in EU build — confirmed in Amsterdam demo footage handling unprotected turns and signalized intersections
Driving modes Multiple profiles including a more aggressive “Mad Max” mode EU build is more conservative by default and errs on the side of restraint when it cannot confirm the limit
Summon Available — Smart Summon navigates parking lots to driver Status unclear — not confirmed as part of the RDW-approved feature set; urban FSD approval targeted separately for 2027
Driver monitoring Camera-based eye tracking Stricter continuous monitoring with more frequent intervention alerts
Software version FSD v14.3 EU-specific builds that must be separately validated by RDW
Geographic restriction US, Canada, China, Mexico, Australia, NZ, South Korea Netherlands only; EU-wide vote pending summer 2026
Subscription price $99/month €99/month
Full urban FSD scope Available Partial — separate urban application planned for 2027

The approval comes as Tesla is under real pressure to grow FSD subscriptions globally. Musk’s 2025 CEO compensation package, approved by shareholders, includes a milestone requiring 10 million active FSD subscriptions as one condition for his stock awards to vest. Tesla hit one million subscriptions during its Q4 2025 earnings call, which is a meaningful start, but still a long way from the target. Opening Europe as a market for subscriptions, rather than just hardware sales, directly accelerates that number.

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Tesla has said it anticipates EU-wide recognition of the Dutch approval during summer 2026, which would extend FSD access to Germany, France, and other major markets through a mutual recognition process without each country repeating the full 18-month review. That timeline is Tesla’s projection, not a confirmed regulatory outcome. As Musk acknowledged at Davos in January 2026, “We hope to get Supervised Full Self-Driving approval in Europe, hopefully next month.”

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