London Daily

Focus on the big picture.
Tuesday, Jul 14, 2026

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

0:00
0:00
Close
UK Prime Minister Keir Starmer Offers Condolences Following Death of Qatar’s Father Amir
UK Regional Innovation Policy Focuses on Research Clusters Across Scotland, Wales, and Northern England
UK Corporate Transparency Rules Set to Become More Strict Under Modern Slavery Reform Plans
UK Civil Service Estate Strategy Shifts Government Activity Away From London
UK Strengthens National Security Powers Through New Threat Designations
Greater Manchester Police Conduct Drink and Drug Driving Operations After Football Events
UK Government Advances Darlington Economic Campus With Construction Milestone
UK Authorities Increase Football-Related Security Operations After Tournament Fixtures
UK Invests Fifty-One Million Pounds in National Cryogenics Facility and Regional Innovation Hubs
UK Moves Toward Tougher Modern Slavery Reporting Rules With Corporate Penalties
UK Government Reports Forty-Three Million Pounds in Savings From Office Estate Reform
UK Government Expands Civil Service Regional Strategy With Manchester and Darlington Campus Projects
UK Designates Iran’s Islamic Revolutionary Guard Corps as National Security Threat
United Kingdom Financial Markets Monitor Business Response to Economic Policy Changes
Scottish Renewable Energy Expansion Highlights Need for Faster Grid Development
Wales and Regions Strengthen Focus on Economic Development Through Tourism and Investment
Retail Industry Warns High Street Businesses Remain Under Pressure
Police Chiefs Highlight Growing Challenges Managing Protests and Public Order
Agriculture Leaders Seek Clarity on Post-Brexit Farming Support and Environmental Rules
Transport Unions Warn of Further Industrial Action Over Pay and Working Conditions
Welsh Tourism Sector Reports Strong Growth Driven by Domestic and International Visitors
National Infrastructure Review Gains Support as Leaders Seek Faster Project Delivery
Financial Markets Assess Impact of United Kingdom Corporate Tax Policy Changes
Northern Ireland Assembly Debates Cross-Border Trade and Infrastructure Cooperation Plans
Government Opens Consultations on Housing Reform and Planning System Changes
Scottish Government Faces Pressure to Accelerate Offshore Wind and Grid Expansion
National Energy System Operator Warns Grid Investment Is Needed for Future Electricity Demand Growth
United Kingdom Research Council Invests in Artificial Intelligence and Biotechnology Innovation Hubs
United Kingdom Expands Oversight of Skilled Worker Visa Sponsors Amid Migration Debate
Cross-Party MPs Call for National Infrastructure Strategy Review to Accelerate Economic Growth
Prime Minister Announces One Billion Pound NHS Funding Package Ahead of Winter Pressures
Bank of England Signals Cautious Approach to Interest Rates as Inflation Remains Above Forecasts
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
Innovation-led growth strategy
Public service reform pressure
Defence and industrial security
Labour leadership transition and economic reset
Northern England Pushes for Greater Influence in Britain’s Future Economic Model
UK Technology Strategy Focuses on Life Sciences, Digital Innovation and Research Investment
Britain and United States Maintain Focus on Pharmaceuticals Cooperation and Industrial Growth
UK Public Services Face Continued Pressure as Government Promises Visible Improvements
Regional Economic Power Becomes Key Theme in Britain’s Next Political Phase
Britain Expands Support for Small Businesses as Firms Seek Better Access to Finance
UK Economy Remains Central Political Challenge as Cost of Living and Growth Concerns Persist
National Health Service Introduces New Workplace Reviews to Improve Conditions for Healthcare Staff
UK Life Sciences Sector Secures More Than Three Billion Pounds in Investment to Support Innovation
Britain Strengthens Defence Strategy as Security Concerns Reshape Military and Industrial Policy
Andy Burnham Promises Stronger UK Defence Industry and Expanded Domestic Production
×