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SpaceX’s Starship wins $53M from NASA for full-scale orbital refueling test
SpaceX’s Starship program has won $53 million from NASA to perform a full-scale test of orbital propellant transfer, taking the company and space agency’s relationship on the crucial technology to the next level.
NASA revealed the results of its fifth round of “Tipping Point” solicitations on October 14th, announcing awards of more than $370 million total to 14 separate companies. This year’s investments focused on three main categories: “cryogenic fluid management, lunar surface [operations], and closed-loop [i.e. autonomous] descent and landing capability demonstrations.”
In a fairly predictable outcome, the bulk (~$176 million) went to Lockheed Martin and the United Launch Alliance (ULA), while the other half (~$189 million) was split among the twelve remaining companies. In an upset, however, SpaceX was awarded a substantial contract for a crucial aspect of Starship development.
Today’s Tipping Point contract is technically the second time NASA has awarded SpaceX funding for propellant transfer development. In October 2019, almost exactly one year ago, SpaceX won $3 million “to develop and test…cryogenic fluid coupler [prototypes] for large-scale in-space propellant transfer,” marking NASA’s first direct investment in Starship. It seems that NASA was thoroughly satisfied with the results of that icebreaker test – enough to fund a full demonstration of Starship propellant transfer to the tune of $53.2 million.
As Ars Technica’s Eric Berger notes, NASA investing eight figures in a SpaceX Starship propellant transfer demonstration – let alone some $250 million overall in four separate companies – comes as a major surprise. In doing so, NASA is effectively testing the tolerance of political stakeholders in programs like Orion and SLS – programs that exist more to preserve jobs and prop up Congressional stakeholders. If a magnitude(s)-cheaper and more capable solution like distributed launch and orbital refueling were demonstrated under NASA’s own purview, it might become a lot harder to defend heritage programs that have been hemorrhaging ~20% of the space agency’s annual budget for almost a decade.
NASA says that this round of Tipping Point contracts could last up to five years. Aside from a $41.6 million contract with Intuitive Machines to develop a Moon hopper spacecraft capable of propulsively hopping around the lunar surface, the most interesting awards are focused on “cryogenic fluid management.” Eta Space received $27 million for a “small-scale flight demonstration of a complete cryogenic oxygen fluid management system to be integrated with Rocket Lab’s Photon spacecraft bus and launched on an Electron rocket.
Lockheed Martin won $89.7 million for an “in-space demonstration mission using liquid hydrogen…to test more than a dozen cryogenic fluid management technologies.” ULA, of which Lockheed Martin is a member, was awarded $86.2 million to test “precise tank pressure control, tank-to-tank transfer, and multi-week propellant storage” with a Vulcan Centaur upper stage.
Finally, SpaceX won $53.2 million for a “large-scale flight demonstration to transfer 10 metric tons of [liquid oxygen] between tanks on a Starship vehicle.” Notably, this seems to imply that NASA is effectively funding a single-ship orbital flight test in which a Starship prototype will (most likely) attempt to transfer liquid oxygen between its main LOx tank and a smaller ‘header’ tank.
Coming on the heels of an April 2020 contract that awarded SpaceX $135 million to develop a crewed Starship design optimized for Moon landings, NASA is beginning to put some serious money where its mouth is to develop a wide range of innovative solutions that may enable sustainable human space exploration.
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SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
The Space Force just handed SpaceX $2.29 billion to build the military’s space internet backbone.
The U.S. Space Force awarded SpaceX a $2.29 billion contract on May 26, 2026 to build the backbone of its Space Data Network, a satellite-based communications system designed to keep American military forces connected anywhere on Earth in real time. The contract is firm-fixed-price and requires SpaceX to deliver a fully operational prototype by the end of 2027.
In plain terms, the SDN Backbone is the plumbing behind the military’s space-based internet. It functions as a low Earth orbit satellite constellation providing robust, high-capacity, and low-latency data transport for the Joint Force, connecting sensors and weapons systems continuously, globally, and securely. Think of it as a private, hardened version of Starlink built specifically for battlefield communications, one that soldiers, ships, and aircraft can rely on even in contested environments where ground-based networks have been disrupted.
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
The Space Force was direct about why SpaceX was selected. “The SDN Backbone leverages the best of commercial innovation and delivers a strong foundation for the SDN mission set — a huge benefit and enabler for our warfighters,” said USSF Col. Ryan Frazier.
“We aren’t trading speed for scale; we are demanding both. By using rapid prototyping and Other Transaction Authorities, we are ensuring our advanced solutions are integrated and delivered to the warfighter as fast as possible,” added USSF Lt. Col. Fry, SDN Backbone system program manager.
The SDN Backbone will work alongside the Space Development Agency’s Transport Layer, with the two systems forming a unified open architecture to provide critical data transport for current and future Department of War missions.
As Teslarati has reported, this is not SpaceX’s first Space Force contract of 2026. In April, the Space Force awarded SpaceX $178.5 million to launch missile tracking satellites, and SpaceX is already embedded in the Golden Dome missile defense software group. The $2.29 billion SDN Backbone award puts SpaceX at the center of how the American military communicates in space, a position with direct implications for its reported $1.75 trillion IPO valuation as the company heads toward a public offering as early as June 2026.
Tesla’s dedicated factory for building up to ten million Optimus units is officially under construction at Gigafactory Texas.
Drone footage released on May 27 by Giga Texas observer Joe Tegtmeyer captures the significant milestone of the first steel structure officially standing at Tesla’s new Optimus factory on the North Campus of the facility.
Phase two of land reclamation is advancing steadily, and the progress will let the new building extend nearly the full length of the main Giga Texas factory, potentially exceeding 4,000 feet, while measuring somewhere between 50 and 70 meters narrower. Extensive foundation work is proceeding as well.
Big news at the new Optimus 10m/y factory construction site today! The 1st steel structure has been erected & as expected the second phase of land reclamation is underway.
This will allow this new factory to grow to nearly the same length as the main Giga Texas factory,… pic.twitter.com/FidRLV6XpU
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) May 27, 2026
This facility forms a central element of Tesla’s broader North Campus expansion at Giga Texas. The project will add more than 5.2 million square feet of new industrial space. It sits alongside other advanced developments, including a Terafab for next-gen AI chips. The scale reflects Tesla’s commitment to transforming humanoid robotics into a core pillar of the company’s future.
Musk has said that Optimus will be the biggest product in the world on several occasions. He believes it will be Tesla’s biggest valuation contributor.
Tesla prepares to expand Giga Texas with new Optimus production plant
Tesla plans to build about 10 million robots at the site annually once it is completed, which would be about 27,000 units each day.
The Optimus plant at Giga Texas is part of Tesla’s phased strategy for Optimus manufacturing. In an effort to start production of the robot well before the Giga Texas plant is complete, Tesla ended production of the Model S and Model X vehicles, which were built in Fremont, California, to make way for initial Optimus manufacturing efforts.
Production there will start in either July or August of this year, and early units will support internal factory tasks while the team gathers real-world data to refine processes. The Gigafactory Texas facility will house a second-gen production line. It targets high-volume output starting in Summer 2027.
Musk has repeatedly described Optimus as potentially more valuable than Tesla’s entire vehicle business. Current versions are already completing minor tasks around various facilities, while Tesla continues to refine its abilities and add new features.
Tesla’s total investment could reach several billion dollars. Significant challenges lie ahead, including the creation of an entirely new manufacturing ecosystem, the refinement of AI systems for dependable autonomy, and the development of reliable supply chains for actuators, sensors, and other components.
Nevertheless, the visible progress at Giga Texas highlights Tesla’s capacity to translate ambitious concepts into physical reality.
Tesla’s Optimus factory stands as much more than a simple expansion project, as it is quite literally the second phase of what could potentially be the biggest product ever. With construction beginning, 2027 is poised to become a transformative year for Tesla, as it evolves even further from an electric vehicle leader into a pioneer of intelligent, general-purpose machines.
Tesla Vice President of Vehicle Engineering, Lars Moravy, recently revealed the company has thought about introducing a Plaid powertrain on the Model 3, but there could be some challenges involved.
On the Ride the Lightning podcast, Moravy revealed that he thinks about a Plaid Model 3 “all the time,” and it certainly has a place in Tesla’s potential lineup of future vehicles.
Now that the Plaid powertrain is technically defunct due to the newfound absence of the Model S and Model X, Tesla could find a way to reintroduce the lightning-quick trim level to its mass-market vehicles.
But there are going to be some challenges with it. Moravy said that the Model 3 Plaid would likely adopt the carbon-sleeved motors that the Model S Plaid had. However, packaging would be a major challenge, as Moravy said on the podcast, it would be a “tight engineering squeeze.”
It’s important to note that there are no active production plans for the Model 3 Plaid at this point, but it’s also worth noting that with the Model S and Model X Plaid no longer available, Tesla would likely be willing to introduce something that is even more white-knuckle than the Model 3 Performance, which already boasts a 2.9-second 0-60 MPH acceleration rate and a top speed of 163 MPH.
Of course, there is the Roadster, but we don’t know when that will exactly make it to market, and we know that, for sure, it will not be accessible to many.
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Tesla has prided itself in building some of the best cars out there, but they’re also interested in building cars that are simply fun to be in.
A Plaid Model 3 could truly push the limits and could end up being one of the best cars Tesla will ever build, especially if it can shave off at least half of a second from its 0-60 MPH time and increase its top speed slightly.
More than anything, the real changes will be in the ride and aerodynamics. Tesla improving things like the suspension, handling, and downforce will be the true trademarks of its Plaid powertrain; putting it in the Model 3 could be a great move for the company and for customers interested in high-end performance.
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
Tesla’s dedicated Optimus factory construction officially underway at Giga Texas
