Elon Musk says how SpaceX may soon face a genuine risk of bankruptcy

In an email sent to SpaceX staff Elon Musk has said that SpaceX faces the genuine possibility of bankruptcy over Raptor engines.

1 minute & 40 seconds read time

According to SpaceX CEO Elon Musk, the production of SpaceX's Raptor engines that will be equipped to its upcoming launch vehicle called Starship may cause SpaceX to face bankruptcy.

Elon Musk says how SpaceX may soon face a genuine risk of bankruptcy 01

In an email obtained by Space Explored that was sent out to SpaceX staff over the Thanksgiving weekend by Musk, the CEO explains that the lack of Raptor engine product has caused a situation that has turned into something much worse than it was a few weeks ago. Musk describes the situation as a "crisis", and says he will be working on the Raptor production over the Thanksgiving weekend and requests any SpaceX staff that have free time to assist him.

"Unless you have critical family matters or cannot physically return to Hawthorne, we will need all hands-on deck to recover from what is, quite frankly, a disaster", reads the email. The email continues and mentions that the Raptor engines required to launch Starship is needed to launch V2 Starlink internet satellites as V2 Starlink satellites cannot be attached to SpaceX's current launch vehicle workhorse the Falcon 9. Starlink is needed to get V2 Starlinks into orbit, which SpaceX is relying on as cash inflow.

"Satellite V1, by itself, is financially weak, while V2 is strong. In addition, we are spooling up terminal production to several million units per year, which will consume massive capital, assuming that satellite V2 will be on orbit to handle the bandwidth demand. These terminals will be useless otherwise," per Space Explored.

"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."

Read more: Elon Musk reveals when the biggest rocket ever will do its test launch

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Jak joined the TweakTown team in 2017 and has since reviewed 100s of new tech products and kept us informed daily on the latest science, space, and artificial intelligence news. Jak's love for science, space, and technology, and, more specifically, PC gaming, began at 10 years old. It was the day his dad showed him how to play Age of Empires on an old Compaq PC. Ever since that day, Jak fell in love with games and the progression of the technology industry in all its forms. Instead of typical FPS, Jak holds a very special spot in his heart for RTS games.

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