Arab Press

بالشعب و للشعب
Friday, Jun 20, 2025

Musk Tells SpaceX Team Company Is on Verge of Bankruptcy Amid Troubled Engine Production - Report

Musk Tells SpaceX Team Company Is on Verge of Bankruptcy Amid Troubled Engine Production - Report

SpaceX, which employs 7,000 people, is valued at more than $100 billion. NASA has awarded it a $2.9 billion contract to create a lunar lander capable of carrying astronauts to the moon. However, the current production situation presents a significant obstacle to achieving that goal by the intended date.

Elon Musk, the CEO of SpaceX, sent an agitated email to his employees on Friday, encouraging them to work on SpaceX's Raptor engine line over the weekend and calling the production situation a "crisis," Space Explore reported.

According to the report, citing an obtained internal email, Musk stated that the company faced a "genuine risk of bankruptcy" if production of the company's new engine for the Starship rocket does not grow to accommodate a high flight rate of "at least once every two weeks" next year.

"The Raptor production crisis is much worse than it seemed a few weeks ago," Musk emphasized. "We face genuine risk of bankruptcy if we cannot achieve a Starship flight rate of at least once every two weeks next year."

SpaceX is working on a huge next-generation rocket called Starship that will be used to launch freight and people on missions to the Moon and Mars. The firm is testing prototypes at a facility in southern Texas and has already completed several short test flights. However, in order to advance to orbital launches, each rocket prototype will require up to 39 Raptor engines, necessitating a rapid increase in engine production.

The company's boss revealed to his team that he had planned to take the extended Thanksgiving holiday off, his "first weekend off in a long time." But when he discovered how serious the Raptor engine problem was, he changed plans and worked through Friday night and into the weekend.

"Unless you have critical family matters or cannot physically return to Hawthorne, we need all hands on deck to recover from what is, quite frankly, a disaster," Musk wrote.

Earlier, Musk reportedly said that SpaceX plans to launch its Starship rocket into orbit in January from its Boca Chica, Texas, base. Musk had stated that he was unsure if Starship will be able to reach orbit on its maiden attempt. However, he stated that he is "certain" that the rocket would reach space in 2022.

According to Musk, "at least 90%" of Starship's development has been "internally funded thus far."

According to a CNBC report, Will Heltsley, SpaceX's vice president of propulsion, left the company earlier this month, causing a stir. Heltsley was removed from the company's Raptor development line before leaving.

Nevertheless, it is difficult to say whether SpaceX is actually in deep trouble. Musk replied to the email's coverage later on Tuesday, suggesting that bankruptcy is unlikely but not unthinkable in the event of a major global recession.


SpaceX designs the Starship spacecraft, as well as its rockets and boosters, to be totally reusable. Falcon 9 rockets are only partially reusable at the moment.

While the booster and upper component of the rocket can be landed and relaunched, the upper portion of the rocket cannot.

SpaceX defeated Jeff Bezos' Blue Origin in early November, which tried unsuccessfully to halt the contract through the courts. In the satellite internet space, Bezos and Musk are competing to provide a high-speed internet connection to clients from low orbit.

So far, SpaceX has put 1,700 Starlink satellites into orbit, according to the company. It has so far attracted 140,000 monthly users who pay $99 each.

Amazon, Bezos' online retailer, is planning to launch Project Kuiper prototype satellites in the fourth quarter of 2022. At a cost of $10 billion, Amazon intends to have 3,236 satellites in low Earth orbit.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Syria to Reconnect to Global Economy After 14 Years of Isolation
Saudi Arabia Faces Uncertainty Over Succession After Mohammed bin Salman
Israel Confirms Arming Gaza Clan to Counter Hamas Influence
Majority of French Voters View Macron's Presidency as a Failure
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
Businessman Mauled by Lion at Luxury Namibian Lodge
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
Head of Gaza Aid Group Resigns Amid Humanitarian Concerns
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
×