London Daily

Focus on the big picture.
Wednesday, Feb 25, 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
Lord Mandelson Condemns Arrest as Driven by ‘Baseless Suggestion’ He Would Flee Abroad
Former UK Ambassador Released on Bail Following Arrest in Epstein-Linked Investigation
UK Parliament Orders Release of Former Prince Andrew’s Government Vetting Files
Reddit Fined £14 Million by UK Regulator Over Failures in Age Verification Controls
UK Moves to Tighten Regulation of Netflix, Disney+ and Prime Video Under New Media Rules
British Woman Who Reported Rape in Hong Kong Faces Possible Prosecution
'Christianity is the religion that has made this country great.'
Man Receives Parking Ticket 38 Years After Offense: ‘City Officials Said It’s Legitimate’
Woman Receives Gift Card for Christmas – Discovers It Is ‘Worth’ 63,000,000,000,000,000 Pounds
UK Sanctions New Zealand Insurer Maritime Mutual Following Allegations Over Russian Oil Cover
Reform MP Danny Kruger Condemns UK’s ‘Unregulated Sexual Economy’ in Call for Tougher Controls
The Show Must Go On: Prince William and Kate Middleton Shine at the BAFTAs Amid Andrew’s Arrest
UK Sanctions Russian ‘Illicit Oil Traders’ After Email Blunder Exposes Sanctions Evasion Network
Russia Amplifies Baseless Claims That UK and France Plan to Arm Ukraine with Nuclear Weapons
UK Imposes Sanctions on Two Georgian Television Channels Over Alleged Russian Disinformation
United States National Parks See Noticeable Drop in Visitors from Canada, U.K. and Australia
UK, Australia, Canada and New Zealand Escalate Sanctions on Russia as Ukraine War Marks Four Years
I Gave Andrew a Nude Massage Inside Buckingham Palace
UK Economy Faces Acute Strain as Trump’s Global Tariff Reshapes Trade Landscape
UK Signals Retaliation Is Possible as New US Tariff Policy Threatens Trade Stability
British Police Arrest Former Ambassador Peter Mandelson in Epstein-Related Misconduct Probe
Australia Officially Supports Proposal to Remove Andrew Mountbatten-Windsor from Royal Succession
Victorian Premier Jacinta Allan remains silent on ISIS brides' resettlement plans in Melbourne
Former UK Ambassador Peter Mandelson Arrested in Connection with Jeffrey Epstein
Jacob Rees Mogg afraid to talk about Peter Mandelson arrest on “suspicion of misconduct in a public office” (Pedophilia, corruption, etc.)
United Nations Calls for Global Action Against Disinformation and Hate Speech Online
Tucker Carlson warns of an inevitable clash in Western societies over mass migration
President Trump warns countries against abandoning recent trade deals with the US
Diverging Polls Show Mixed Signals on UK Economic Revival as Confidence Remains Fragile
Spotify Expands AI-Driven ‘Prompted Playlists’ Feature to the United Kingdom and Other Markets
Greens and Reform UK Surge in Manchester By-Election, Threatening Labour’s Historic Stronghold
UK Businesses Push for Closer European Trade Links Amid Renewed US Tariff Uncertainty
Deloitte Global Overhaul Sparks Leadership Contest in the United Kingdom
University of Kentucky and Microsoft to Showcase Campus-Wide AI Innovation
UK Food System Faces Acute Vulnerability to Shocks, Experts Warn
Reform UK’s Proposed ICE-Style Deportation Scheme Triggers Sharp Backlash
U.S. Global Tariff Push Leaves Britain, Australia and Others Facing Higher Costs and Trade Strain
UK Police Officers Guarded 2010 Epstein Dinner Attended by Prince Andrew, Reports Say
US Trade Representative Affirms Commitment to Existing Tariff Agreements with UK and Other Partners
Activists at the Louvre hung a framed Reuters photograph of Andrew Mountbatten-Windsor slumped in the back of a car leaving a police station on the day of his arrest
The royal biographer said that he expected the police to 'look at the money trail' - including Sarah Ferguson borrowing money from Epstein
A Protestor screams in NYC: “Bill Gates is on the Epstein’s List…”
FBI and Secret Service Hold Press Conference After Shooting Incident at Mar-a-Lago
Mark Zuckerberg Testifies in Trial Over Social Media's Impact on Children's Mental Health
Maggie Oliver exposes Keir Starmer using letters to close child rapists investigations
Kouri Richie's wrote a children’s book to help her sons grieve the death of their father. Now she’ll stand trial for his murder
New York Braces for Major Snowstorm With Up to 18 Inches Forecast and Blizzard Warnings Issued
Mexican Military Kills CJNG Leader Nemesio Oseguera Cervantes as Violence Erupts Across Jalisco
Metropolitan Police Deploys Palantir-Powered AI to Flag Potential Officer Misconduct
UK Parliament Rebukes Police Over Ban on Israeli Football Fans
×