London Daily

Focus on the big picture.
Friday, Jul 17, 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
White House Teleprompter Operator Earned More Than $100,000 From Bets Linked to the President's Speeches
Tech Companies Want to Move Computing Off Your Screen and Onto Your Body
UK Government Faces Pressure Over Extreme Heat Workplace Rules
Lewisham Council Blocks Cooperation With Home Office Immigration Enforcement
UK Parliament Investigates Growing Pressures on Scotch Whisky Industry
Teen Hackers Sentenced Over Thirty-Nine Million Pound Transport for London Cyber Attack
Ministry of Defence Acquires Scottish Fuel Terminal to Strengthen Royal Navy Operations
Bank of England Eases Rules as Economic Growth Remains Weak
Bank of England Governor Warns Andy Burnham on Britain’s Long Economic Stagnation
UK Defence Ministry Buys Scottish Fuel Terminal to Secure Naval Energy Supplies
UK Secures Access to European Defence Contracts Through Ukraine Support Deal
Bank of England Plans Easier Capital Rules to Encourage More Lending
Met Office Says England and Wales Have Already Broken Summer Heat Records
Counter-Terrorism Police Lead Investigation Into Murder of Former Minister Ann Widdecombe
UK Government Nationalises British Steel to Protect Domestic Steel Production
French National Assembly Overrides Senate to Pass Historic Assisted-Dying Legislation
Spanish Prime Minister's Wife Ordered to Stand Trial as Corruption Probes Encircle Governing Party
Zelensky Faces Kyiv Protests Over Ousting of Dynamic Ukrainian Defense Minister
Colombia Influencer Dies After Cosmetic Procedure at Unlicensed Bogota Salon
Thomas Tuchel Faces Fierce Backlash After Tactical Retreat Costs England World Cup Final Berth
A Quiet Bastille Day: France Grapples with World Cup Heartbreak and Leftover Fireworks
Canadian Wildfire Crisis Triggers Transnational Air Quality Alerts Ahead of Soccer Finale
UK Housing Reform Debate Intensifies Over Tenant Protection Measures
UK Defence Official Challenges Russian Narrative on NATO Readiness and European Security
UK Names Independent Member to Judicial Pension Board to Strengthen Oversight
UK Parliamentary Committee Sets New Framework for Select Committee Leadership Roles
UK Government Pushes Energy Savings Through School Solar Expansion Plan
UK Committee Reviews Future of Gaelic Broadcasting and Language Support
UK Government Expands Industrial Skills Support in Wales as Steel Sector Faces Change
UK Rejects Russian Claims That European Defence Spending Is Aggressive
UK Schools and Gaelic Broadcasting Among Areas Reviewed in New Parliamentary Inquiries
UK Housing Committee Calls for Stronger Tenant Protections Under Rental Reform Plans
UK Government Faces Pressure for Stronger Oversight After South East Water Failings Report
UK Parliament Opens Inquiry Into Safety of Women and Girls on Public Transport
UK Defence Ministry Appoints Interim Chief Defence Medical Officer During Transition Period
UK Government Announces Five Million Pound Skills Programme for Young People in Port Talbot
UK Government Launches Solar Programme to Cut Energy Costs for Schools
Met Office Warns Extreme Weather Is Becoming More Common Across the UK
UK Government Faces Internal Debate Over New Chancellor Appointment Under Andy Burnham
Andy Burnham Set to Become UK Prime Minister After Keir Starmer’s Resignation
UK Economy Grows Slightly in May as Supply Chain Disruptions Continue to Weigh on Industry
British Steel Moves Into UK Public Ownership to Protect Domestic Steel Production and Jobs
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
Spain and UK Dismantle Gibraltar Border Following Landmark Schengen Integration Treaty
Church of England Rejects Plan to Rewild Thirty Percent of Land by 2030
UK Parliament Examines Future of Gaelic Broadcasting in Scotland
Thames Water Faces Criticism Over Four Million Pounds in Bonus Payments
South East Water Crisis Puts UK Water Regulation Under Renewed Scrutiny
UK Report Highlights Racial Inequality in Homelessness Support Services
UK Government Defends Proposed Social Media Curfew for Teenagers Despite Criticism
×