SpaceX founder Elon Musk unveiled the Dragon V2, the company's first manned spacecraft, at SpaceX's headquarters in Hawethorne, California on Thursday.

Contrary to rumors, the Dragon V2 has not undergone a makeover and looks similar to its predecessor the Dragon, though it is larger and more streamlined. The space capsule will be able to carry up to seven people into space.

The goal is to send NASA astronauts to the International Space Station, weaning the United States off its reliance on Russian Soyuz spacecraft to fly astronauts to the station. NASA has to pay Russia $60 million for each astronaut it sends to the station.

Built into the side walls, the upgraded engines of Dragon V2, dubbed the "SuperDraco system", can produce up to 16,000 pounds of thrust. The combustion chamber is 3D-printed with Inconel, a specialized alloy with a high resistance to heat.

The space capsule is designed to land on any location on Earth with precision, making it reusable for future launches.

If successful, the Dragon V2 will bring down the cost of space rides significantly. Its first launch with test pilots on board could happen as soon as 2016.

The development of the Dragon V2 comes at an opportune time, as relations between Russia and the United States have become strained over the crisis in Ukraine. In late April Russia's Deputy Prime Minister Dmitry Rogozin said on Twitter that the United States should use "trampolines" to reach the International Space Station in the future.

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