News
US Air Force issues RFP for massive rockets, SpaceX’s BFR could be one of them
The US Air Force has released a Request For Proposal (RFP) that hopes to fund the development of multiple heavy-lift rocket prototypes to launch no later than 2021. The USAF specified on October 5 that it wants to partially fund prototype development for at least three promising US-sourced launch vehicles, while maintaining the options to select none of the proposals or even more than three. The purpose of these broad strokes is to provide the Air Force and US military in general redundant access to space by way of “at least two domestic…launch service providers” capable of meeting National Security Space (NSS) requirements.
However unlikely it may seem, NASA experienced this firsthand when two of the vehicles it funded, SpaceX’s Falcon 9 and Orbital-ATK’s Antares, experienced complete failures within less than a year of each other. Both vehicle failures destroyed supplies intended for the International Space Station and forced NASA to rely on Soyuz missions to fill the gaps created while producing considerable uncertainty for the agency. By funding two or more independent launch vehicles, the Air Force would lessen the impact of such failures, and this assured access is rightly perceived as an invaluable commodity in the military.
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- .While SpaceX’s own visualizations are gorgeous and thrilling in their own rights, Romax’s interpretation adds an unparalleled level of shock and awe. (SpaceX)
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- A render of Blue Origin’s larger New Glenn vehicle. (Blue Origin)
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- The only current render of OATK’s Next Generation Launcher. (OATK)
Several details in the latest proposal make it relatively easy to name the obvious prospective applicants. The payload requirements necessitate heavy lift or even super-heavy lift launch vehicles capable of placing anywhere from 5,000 to 37,500 pounds into a variety of Earth orbits, ranging from low Earth orbit (~500 mi) to direct transfer geostationary orbits (~19,200 mi). This narrows the field considerably, pushing out all smaller-scale vehicles. Also telling is a requirement that proposed launch vehicles make use of rocket propulsion systems (RPS) already funded for development by the USAF if at all possible.
Considering the inherently complex and difficult process of developing massive rockets, initial launch dates no later than 2021 (or 2024) likely mean that the vehicles being considered must already be under some level of serious development. This leaves us with four possible options in the US, undoubtedly not a coincidence given the RFP’s explicit goal of facilitating the creation of “at least three…prototypes as early as possible” and “at least two domestic…launch service providers”. These four vehicles are SpaceX’s BFR, Blue Origin’s New Glenn, ULA’s Vulcan, and Orbital-ATK’s NGL, all of which already have tentative inaugural launch dates clustered from 2019 to 2022. Perhaps even more revealing, all four vehicles can be expected to utilize several rocket propulsion systems (rocket engines) already funded by the Air Force, namely SpaceX’s Raptor, Blue Origin’s BE-4 and BE-3U, and Aerojet-Rocketdyne’s AR-1.
While the development of BE-4 and AR-1 have been somewhat veiled, SpaceX’s Raptor engine has publicly made a great deal of progress. As discussed during Elon Musk’s IAC 2017 presentation, the company has conducted an array of successful tests with its subscale Raptor program, to the tune of 42 individual hot-fire tests totaling more than 1,200 seconds. Musk also reported that the only thing preventing tests longer than 100 seconds was the size of the propellant tanks at the test stand, a genuinely impressive accomplishment if true. The sticking point, however, is how much difficulty SpaceX will have as they transfer to full-scale Raptor testing. The subscale Raptors being tested have a reported thrust of 1,000 kN, whereas the new full-scale thrust targets for BFR have settled on 1,700-1,900 kN, considerably smaller than the 3,000 kN figure from 2016 but still nearly a factor of two larger than the test articles SpaceX has had success with. In fact, educated speculation from SpaceX fans suggest that the operational Raptor as shown in 2017 may only need to be about 15% larger than the current test article(s). The pressure the full-size engine operates at will be considerably higher, so SpaceX’s work is not done by any means, but the company’s next-gen rocket propulsion system is arguably far closer to completion than any of its competitors’ offerings.
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- SpaceX’s subscale Raptor engine has completed more than 1200 seconds of testing in less than two years. (SpaceX)
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- A subscale version of BE-4 testing staged combustion and nozzle technology. (Blue Origin)
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- Aerojet-Rocketdyne’s AR-1 preburner conducted its first successful test earlier this year. (AR)
As far as we are publicly aware, SpaceX’s subscale Raptor testing has yet to result in a major failure and has largely been a great success. Blue Origin’s BE-4 is known to have experienced at least one critical failure during hot-fire testing, while AR-1 has not yet begun full engine tests but is well into concrete hardware testing. Blue Origin’ s BE-4 engine and its New Glenn rocket are currently expected to fly for the first time before 2020, with AR’s NGL tentatively planning for a 2021 inaugural flight, assuming the company chooses to continue pursuing its development.
SpaceX has not yet specified when BFR or BFS will first take flight. Raptor is likely to begin full-scale testing relatively soon, and Musk revealed that SpaceX was aiming to begin construction of the first BFR as early as Q2 of 2018. It’s quickly starting to look like the U.S. is about to enter a sort of modern commercial space race and regardless of the outcome, the next several months and years are bound to be tense and exciting for SpaceX, Blue Origin, and the established incumbents as they battle for both public and private contracts.
News
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
Tesla confirmed its intentions to expand the Robotaxi program in the United States with an aggressive timeline that aims to send the ride-hailing service to several large cities very soon.
The Robotaxi program is currently active in Austin, Texas, and the California Bay Area, but Tesla has received some approvals for testing in other areas of the U.S., although it has not launched in those areas quite yet.
However, the time is coming.
During Tesla’s Q4 Earnings Call last night, the company confirmed that it plans to expand the Robotaxi program aggressively, hoping to launch in seven new cities in the first half of the year.
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
These details were released in the Earnings Shareholder Deck, which is published shortly before the Earnings Call:
🚨 BREAKING: Tesla plans to launch its Robotaxi service in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas in the first half of this year pic.twitter.com/aTnruz818v
— TESLARATI (@Teslarati) January 28, 2026
Late last year, Tesla revealed it had planned to launch Robotaxi in Las Vegas, Phoenix, Dallas, and Houston, but Tampa and Orlando were just added to the plans, signaling an even more aggressive expansion than originally planned.
Tesla feels extremely confident in its Robotaxi program, and that has been reiterated many times.
Although skeptics still remain hesitant to believe the prowess Tesla has seemingly proven in its development of an autonomous driving suite, the company has been operating a successful program in Austin and the Bay Area for months.
In fact, it announced it achieved nearly 700,000 paid Robotaxi miles since launching Robotaxi last June.
🚨 Tesla has achieved nearly 700,000 paid Robotaxi miles since launching in June of last year pic.twitter.com/E8ldSW36La
— TESLARATI (@Teslarati) January 28, 2026
With the expansion, Tesla will be able to penetrate more of the ride-sharing market, disrupting the human-operated platforms like Uber and Lyft, which are usually more expensive and are dependent on availability.
Tesla launched driverless rides in Austin last week, but they’ve been few and far between, as the company is certainly easing into the program with a very cautiously optimistic attitude, aiming to prioritize safety.
Investor's Corner
Tesla (TSLA) Q4 and FY 2025 earnings call: The most important points
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Tesla’s (NASDAQ:TSLA) Q4 and FY 2025 earnings call highlighted improving margins, record energy performance, expanding autonomy efforts, and a sharp acceleration in AI and robotics investments.
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Key takeaways
Tesla reported sequential improvement in automotive gross margins excluding regulatory credits, rising from 15.4% to 17.9%, supported by favorable regional mix effects despite a 16% decline in deliveries. Total gross margin exceeded 20.1%, the highest level in more than two years, even with lower fixed-cost absorption and tariff impacts.
The energy business delivered standout results, with revenue reaching nearly $12.8 billion, up 26.6% year over year. Energy gross profit hit a new quarterly record, driven by strong global demand and high deployments of MegaPack and Powerwall across all regions, as noted in a report from The Motley Fool.
Tesla also stated that paid Full Self-Driving customers have climbed to nearly 1.1 million worldwide, with about 70% having purchased FSD outright. The company has now fully transitioned FSD to a subscription-based sales model, which should create a short-term margin headwind for automotive results.
Free cash flow totaled $1.4 billion for the quarter. Operating expenses rose by $500 million sequentially as well.
Production shifts, robotics, and AI investment
Musk further confirmed that Model S and Model X production is expected to wind down next quarter, and plans are underway to convert Fremont’s S/X line into an Optimus robot factory with a capacity of one million units.
Tesla’s Robotaxi fleet has surpassed 500 vehicles, operating across the Bay Area and Austin, with Musk noting a rapid monthly expansion pace. He also reiterated that CyberCab production is expected to begin in April, following a slow initial S-curve ramp before scaling beyond other vehicle programs.
Looking ahead, Tesla expects its capital expenditures to exceed $20 billion next year, thanks to the company’s operations across its six factories, the expansion of its fleet expansion, and the ramp of its AI compute. Additional investments in AI chips, compute infrastructure, and future in-house semiconductor manufacturing were discussed but are not included in the company’s current CapEx guidance.
More importantly, Tesla ended the year with a larger backlog than in recent years. This is supported by record deliveries in smaller international markets and stronger demand across APAC and EMEA. Energy backlog remains strong globally as well, though Tesla cautioned that margin pressure could emerge from competition, policy uncertainty, and tariffs.
Tesla is bringing closure to its flagship Model S and Model X vehicles, which CEO Elon Musk said several years ago were only produced for “sentimental reasons.”
The Model S and Model X have been light contributors to Tesla’s delivery growth over the past few years, commonly contributing only a few percentage points toward the over 1.7 million cars the company has handed over to customers annually since 2022.
However, the Model S and Model X have remained in production because of their high-end performance and flagship status; they are truly two vehicles that are premium offerings and do not hold major weight toward Tesla’s future goals.
On Wednesday, during the Q4 2025 Earnings Call, Musk confirmed that Tesla would bring closure to the two models, ending their production and making way for the manufacturing efforts of the Optimus robot:
“It is time to bring the Model S and Model X programs to an end with an honorable discharge. It is time to bring the S/X programs to an end. It’s part of our overall shift to an autonomous future.”
Musk said the production lines that Tesla has for the Model S and Model X at the Fremont Factory in Northern California will be transitioned to Optimus production lines that will produce one million units per year.
Tesla Fremont Factory celebrates 15 years of electric vehicle production
Tesla will continue to service Model S and Model X vehicles, but it will officially stop deliveries of the cars in Q2, as inventory will be liquidated. When they’re gone, they’re gone.
BREAKING: Tesla will wind down Model S and Model X production next quarter, Elon Musk confirms.
“It is time to bring the Model S and Model X programs to an end with an honorable discharge.” pic.twitter.com/Czn7aQjJE1
— TESLARATI (@Teslarati) January 28, 2026
Tesla has been making moves to sunset the two vehicles for the better part of one year. Last July, it stopped taking any custom orders for vehicles in Europe, essentially pushing the idea that the program was coming to a close soon.
Musk said back in 2019:
“I mean, they’re very expensive, made in low volume. To be totally frank, we’re continuing to make them more for sentimental reasons than anything else. They’re really of minor importance to the future.”
That point is more relevant than ever as Tesla is ending the production of the cars to make way for Optimus, which will likely be Tesla’s biggest product in the coming years.
Musk added during the Earnings Call on Wednesday that he believes Optimus will be a major needle-mover of the United States’ GDP, as it will increase productivity and enable universal high income for humans.
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
Tesla (TSLA) Q4 and FY 2025 earnings call: The most important points
