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SpaceX has problems: Elon Musk first spoke about the real risk of bankruptcy

Elon Musk is unhappy with SpaceX’s lack of progress in developing Raptor engines, which are designed for Starship spacecraft and Super Heavy boosters.

He described the dire situation for employees the day after Thanksgiving in a corporate email that CNBC received a copy of.

The Raptor production crisis is much worse than it seemed a few weeks ago. We face a real risk of bankruptcy if next year we cannot reach the Starship launch frequency at least once every two weeks.

Elon Musk

SpaceX has problems: Elon Musk first spoke about the real risk of bankruptcy

Earlier this month, SpaceX’s vice president of propulsion, Will Heltsley, and vice president of flights and launch, Lee Rosen, left the company. Will Heltsley was suspended from Raptor development before leaving. Elon Musk noted in his email that the company’s management has been digging into the problems since then and has already found out that the circumstances are “much more serious” than Musk previously thought.

A huge new-generation rocket, consisting of the Starship and the Super Heavy booster, is designed to launch cargo and people to the Moon and Mars. The company is testing prototypes at a plant in South Texas and has completed several short test flights. The first orbital launch is planned early next year.

SpaceX has not yet responded to CNBC’s request for comment.

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