Armadillo Aerospace is based in Mequite, Texas, and had the initial goal of building manned suborbital spacecraft for the space tourism agency. After incorporating in 2001, the company began to design a craft for the Ansari X-Prize competition.
Unlike the company's competitors, Armadillo's designs used sophisticated computer technologies to simplify rocket control, as well as liquid propellants. This would enable the company to have shorter periods of time between launches, by only requiring a single fuel tank.
During the X-Prize competition, Armadillo successfully demonstrated its vertical take-off and landing abilities; however, the fibre optic gyroscopes used in computer control were shown to be unstable. In addition, the hydrogen peroxide and methanol mixture used for propellant proved to be inefficient, due to a lack of supply in the United States.
The company has since focused its efforts on a lunar lander for NASA's new moon missions, leaving its future in space tourism uncertain.