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Stoke Space to build SpaceX Raptor engine’s first real competitor
Seattle startup Stoke Space has revealed plans to develop an efficient rocket engine similar to the Raptors that power SpaceX’s Starship.
Formed in October 2019, Stoke Space secured its first significant round of funding – $9.1 million – less than three years ago. At that time, CEO and co-founder Andy Lapsa says that the startup had just five employees, no permanent workspace, and a “barren field” for a test site. Within 18 months, Stoke Space had turned that empty field into an impressive test facility, conducted numerous component tests, and assembled its first full-scale rocket engine – an exotic UFO-like device unlike any seen before.
It also raised another $65 million – enough funding to begin earnestly developing a potentially revolutionary rocket capable of launching more than 1.65 tons (~3600 lb) into orbit for less than half a million dollars. To realize that extremely ambitious goal, Stoke Space has taken the even more ambitious step of attempting to make the first rocket it develops fully reusable. Simultaneously, the company has incorporated several exotic technologies into that rocket, recently culminating in a surprise announcement that it will attempt to develop one of the most difficult types of engines to power that rocket’s booster stage.
The update that's rolling out to the fleet makes full use of the front and rear steering travel to minimize turning circle. In this case a reduction of 1.6 feet just over the air— Wes (@wmorrill3) April 16, 2024
Full-flow staged combustion
At the end of an extended interview and tour with YouTuber Tim Dodd (The Everyday Astronaut), CEO Andy Lapsa revealed that Stoke Space has decided to build a full-flow staged combustion (FFSC) engine for the first stage of its reusable rocket. FFSC is the most efficient type of combustion cycle available for a chemical bipropellant rocket engine, but it’s also the most difficult to develop.
A full-flow engine attempts to squeeze every possible ounce of performance out of the propellant it consumes. The most powerful and efficient chemical rocket engines must consume huge volumes of propellant in a short amount of time without destroying the launch vehicle they’re attached to. To create pressure and spin the pumps that are needed to feed that propellant into their main combustion chamber, engines often burn a small amount of propellant in a separate gas generator or preburner. Gas-generator engines vent that exhaust overboard, reducing efficiency but making for a much simpler design. Staged-combustion engines use preburners to create gas that pumps liquid propellant, and that exhaust gas is eventually injected into the main combustion chamber.
Full-flow staged combustion sets itself apart by having two separate pumps and preburners for oxidizer and fuel. Unlike simpler variants of staged combustion, FFSC engines turn all of their propellant into gas before injecting it into the combustion chamber. That hot gas increases the heat of combustion and the pressure inside the combustion chamber, ensuring that virtually all of the propellant that flows through the engine is combusted and turned into thrust as efficiently as possible. FFSC is exceptionally difficult because of the extra-high temperatures and pressures it requires, as well as the need for an oxygen-rich preburner and pump. In a high-pressure, hot-oxygen environment, virtually anything imaginable – including most metals – will spontaneously combust.
Only complex custom-designed alloys can survive those conditions. SpaceX’s Raptor, the only FFSC engine that has ever flown, is especially difficult because it’s meant to be highly reusable. To be successful, Raptor will have to survive those conditions dozens or even hundreds of times in a row with little to no maintenance in between.
The first booster engine Stoke Space ever attempts to build will be a reusable full-flow staged combustion engine powered by liquid methane and liquid oxygen – essentially a smaller version of SpaceX’s Raptor. Stoke’s booster is otherwise familiar and features deployable landing legs like SpaceX’s Falcon boosters. Lapsa says it will likely also have grid fins.
Reusing the upper stage
In some ways, the upper stage of Stoke’s first rocket is even more ambitious. Powered by hydrogen and oxygen propellant, Stoke has designed a conical capsule-like upper stage with an integral fairing. The upper stage’s propulsion is exotic and unique. A large pump will feed propellant to up to 30 combustion chambers distributed around the rim of its heat shield. The exhaust coming from those 30 chambers will expand and partially push against the upper stage’s equally exotic metallic, liquid-cooled heat shield. That expansion against the heat shield improves the efficiency of the upper stage and means that its engine will technically be an aerospike.
Stoke has already begun testing a full-scale version of the upper stage’s UFO-like rocket engine with 15 combustion chambers. Since testing began in the second half of 2022, Stoke has completed dozens of static fires. Everyday Astronaut’s tour also revealed that the startup has made significant progress fabricating and assembling its first full-scale upper stage prototype – tanks, nosecone, heat shield, engine, and all.
Reminiscent of SpaceX’s Grasshopper and Starhopper campaigns, Stoke plans to conduct hop tests with that prototype if it makes it through qualification testing. On February 7th, Stoke also revealed that it’s begun testing a crucial component of its full-flow booster engine. All told, Stoke Space is making progress at a remarkable pace and continues to tackle the hardest problems. The startup has also avoided widely publicizing any specific deadlines, instead choosing to let hardware and tangible results speak for themselves. Only time will tell if that approach pays off, but Stoke is off to an exceptionally impressive start in an industry full of impressive rocket startups.
Tesla Full Self-Driving (Supervised) showed a record attach rate at delivery for new vehicles in the third quarter of 2026.
75 percent of new vehicle deliveries in North America included a subscription to FSD software, up from 55 percent in the prior quarter, a 20-percentage-point sequential gain in the company’s most mature market.
Tesla Q3 2026 Earnings results: in-line revenues, slight beat on EPS
Tesla shed light on the Q3 Shareholder Deck that 75 percent of new deliveries came with an FSD subscription:
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets. “
The higher attach rate accompanied strong growth in the overall FSD consumer base, as active subscriptions rose to 1.75 million, a 67 percent year-over-year increase. For the first time, more than half of paid customers are on the monthly subscription, which is priced at $99 per month in the U.S.
People are buying FSD with a car attached, not the other way around
— Elon Musk (@elonmusk) October 21, 2026
The transition to subscriptions has accelerated since Tesla discontinued the one-time purchase option in most markets earlier this year. The recurring model improves revenue visibility and margins compared with large upfront payments. With three-quarters of North American deliveries now including FSD, the software is now an evidently large contributor to Tesla’s economics and ancillary revenue.
Geographic expansion remains important for further gains. FSD is now available in nine countries in the EU, and more than 100,000 customers have driven over 160 million kilometers. Tesla is pursuing broader EU-wide approval, with a related vote expected in December. Similar progress in additional markets could support higher attach rates beyond North America.
These results came as Tesla had a strong quarterly delivery performance of 486,532 vehicles in the quarter, which came with its largest passenger-vehicle backlog in four years. Battery supply continued to limit volume, but the company has pointed to FSD as a clear difference-maker that is helping sustain demand. As supervised capabilities improve, the attach rate will likely continue to improve.
At face value, it is a key measure of how Tesla is converting sales into autonomy progress.
Update: 10/22 10:51a – Para 1 consumers changed to “customers” for accuracy.
Tesla Cybercab units finally got a definitive date for when they will be able to be purchased by customers, ending speculation regarding whether the fully autonomous vehicle would be available in the near term.
During Tesla’s third-quarter 2026 earnings call on October 21, Vice President of Engineering Lars Moravy said the company is aiming to begin delivering its purpose-built Cybercab robotaxi to customers before year-end.
🚨 In short, Cybercabs are slated to go to customers by end of the year. All units are going into Robotaxi fleet currently, per @larsmoravy
Cybercab will be “transport-as-a-service,” but vast majority of Cybercab will be “Tesla-owned,” @elonmusk says https://t.co/R8Qu8QWdmp
— TESLARATI (@Teslarati) October 21, 2026
“We’re trying to get Cybercabs to customers by the end of this year, 2026,” Moravy said. He added that production is underway on the line at Gigafactory Texas, but “all of those are currently going to our own internal Robotaxi fleet.”
Moravy explained that as operations scale, Tesla will “mainly deliver fully designed autonomous vehicles to our customers,” with the Cybercab as the first such vehicle. Initial customer deliveries will start small while the company gains experience with delivery logistics, ownership models, fleet management, and operating autonomous vehicles outside its direct control.
CEO Elon Musk reinforced the limited nature of private sales, describing the Cybercab primarily as a “transport-as-a-service” offering rather than a personal ownership vehicle like the Model 3, Model Y, or upcoming Roadster. “The vast majority of the Cybercab stuff will be Tesla-owned and transport-as-a-service,” Musk said.
The Cybercab is a two-seater vehicle developed by Tesla without a steering wheel or pedals. It relies completely on Tesla’s Full Self-Driving suite and has been in production since February. Early units have been put in Tesla’s Robotaxi service as of early September, when the company launched rides to the public. Tesla previously indicated it would aim to sell Cybercabs for about $30,000.
Unsupervised Full Self-Driving is expected to ship to consumer cars during Q2 2027, Ashok Elluswamy, Tesla’s Head of AI, indicated during the call. Early buyers or fleet operators may receive vehicles whose autonomous operation remains geographically restricted due to lagging regulatory agencies. There are some hurdles that remain ahead of Cybercab deliveries.
Tesla (NASDAQ: TSLA) reported its earnings for the third quarter of 2026, marking a reasonable performance on the various financial metrics. Tesla still plans to hold a call that will field investor questions at 5:30 p.m. ET, 4:30 p.m. CT.
Here’s where Earnings came in:
- Total Revenues: $28.046 reported vs. $28.34B expected
- Non-GAAP EPS: $0.48 reported vs. $0.45 expected
- Operating Margin: 2.6 % reported vs. 2.5% expected
- Operating Income: $718M reported vs. $721M expected
- Free Cash Flow: $1.531B reported vs. ~-$4.51B expected
Tesla $TSLA Earnings Results:
Revenues: $28.046B
Non-GAAP EPS: $0.48
Operating Margin: 2.6%
Operating Income: $718M
FCF: $1.531B— TESLARATI (@Teslarati) October 21, 2026
Major Takeaways
Full Self-Driving (Supervised)
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets.”
Tesla Semi
“We began volume production of Tesla Semi, our Class 8 heavy-duty truck. The top variant can go 500 miles at full 82,000 lbs gross combination weight while achieving an efficiency of 1.7 kWh/mile. That efficiency allows the Tesla Semi to use a third of the energy used by a comparable diesel truck to haul the same payload. In a transportation market where energy is one of the largest components of total cost per mile, this will provide a meaningful advantage to Tesla Semi operators.”
SI Compute
“We plan to reach 400 MW of SI training compute by the end of the year, supporting the development of both vehicle and humanoid robot autonomy software. Additionally, we continued construction for the Austin Fab, where we plan to start commissioning equipment in 2027.”
Robotaxi
“We began deployment of Cybercab into our Robotaxi fleet in Austin. We reached nearly two million cumulative unsupervised miles for our Robotaxi service as of the end of the quarter. Operating hours in Austin are now 6am to midnight, and we expect to reduce wait times via increased fleet supply and improvement of Robotaxi orchestration algorithms. Grok is available in Cybercab with access to Grok Bot and Connectors, which allows users to manage their inbox, calendars, files, chats and tasks – all hands free via voice command – making Cybercab a mode of transport, a productivity space and, with our entertainment options, a second living room.”
Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here.
Tesla buyers are buying for Full Self-Driving and not for the car, data shows
Tesla Cybercab gets a for sale date at last
