Image: SpaceX

Elon Musk sent an email to employees over the holidays warning that SpaceX is at risk of bankruptcy in the coming year if it doesn’t manage at least one flight every two weeks.

What it comes down to, is that we face a genuine risk of bankruptcy if we can’t achieve a Starship flight rate of at least once every two weeks next year.

This would be a herculean effort to achieve due to weather complications and other moving parts. The good news is that it was valued as a $100 billion dollar company in October following a massive $755 million share sale among its investors. The bad news is that the company has experienced what the CEO called a “Raptor production crisis” after two vice presidents left SpaceX. Raptor is the name of the engine used in the rocket for Starship. The current design uses 37 Raptors.

As we have dug into the issues following the exiting of prior senior management, they have unfortunately turned out to be far more severe than was reported. There is no way to sugarcoat this.

SpaceX is important for many reasons. There has been mostly positive news with the company’s satellite-based internet service Starlink, but getting those into orbit depends on SpaceX. Furthermore, the Raptor engine is for deep space exploration, which is crucial for bringing humans to the Moon, Mars, or beyond. A $300 million contract from NASA was also awarded to SpaceX for its lunar missions.

The situation is so dire that the CEO planned on taking the whole holiday weekend off, but he returned to work on Friday to reign in the crisis. He contacted employees asking them to return to work because he needed “all hands on deck to recover from what is, quite frankly, a disaster,” unless there were complications or family situations preventing them from doing so. He is hopeful an orbital launch will occur in January or February 2022 if it passes all needed approvals and inspections.

Sources: GFR, CNBC (1, 2), The Byte

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Peter Brosdahl

As a child of the 70’s I was part of the many who became enthralled by the video arcade invasion of the 1980’s. Saving money from various odd jobs I purchased my first computer from a friend of my...

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7 Comments

  1. Chasing your dreams is expensive no doubt. Now Elon is coming to a crossroads. Is he willing to sell off a large portion of tesla to personally bail out space x or will he devalue space x by selling more shares?

  2. Just putting this here. Something random I just came across that slightly relates to all the space stuff.

    [URL=’https://twitter.com/SierraSpaceCo/status/1468008649444442114′]CES Dream Chaser Space Shuttle[/URL]

    [MEDIA=twitter]1468008649444442114[/MEDIA]

  3. [QUOTE=”Peter_Brosdahl, post: 45097, member: 87″]
    Just putting this here. Something random I just came across that slightly relates to all the space stuff.

    [URL=’https://twitter.com/SierraSpaceCo/status/1468008649444442114′]CES Dream Chaser Space Shuttle[/URL]

    [MEDIA=twitter]1468008649444442114[/MEDIA]
    [/QUOTE]
    I wonder of they serve coolaid on this space plane. And if you have to wear special shoes…

  4. It’s funny how when a game developer only shows concept art it’s a problem.
    But when a real company shows off something only in concept art and flashy cgi the same people all get mushy and never question the reality of it.

  5. [QUOTE=”MadMummy76, post: 45099, member: 1298″]
    It’s funny how when a game developer only shows concept art it’s a problem.
    But when a real company shows off something only in concept art and flashy cgi the same people all get mushy and never question the reality of it.
    [/QUOTE]
    The ones who have issues with concept art would be devastated after not seeing their favorite concept cars never make it to production if they visited enough shows to see them.

  6. [QUOTE=”Grimlakin, post: 45098, member: 215″]
    I wonder of they serve coolaid on this space plane. And if you have to wear special shoes…
    [/QUOTE]
    custom designed, limited edition, tinfoil hats 😉

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