Elon Musk Troubled by Looming SpaceX Bankruptcy Due to Lack of Starship Engine Progress

Elon Musk, CEO of SpaceX warns employees of the looming genuine risks of bankruptcy if Raptor engine production doesn't increase for the company's next-generation Starship rockets. In a company memo the famed CEO states that the program was in "crisis" suggesting the major threat it poses to the space venture.

Understanding SpaceX' Starship

(Photo: Heisenberg Media/ Wikicommons)

SpaceX made headlines when it first unveiled its Starships. The first fully reusable spacecraft, according to SpaceX, offers integrated payload sections and is capable of carrying both passengers and cargo around the planet's orbit and planetary destinations.

Standing at a height of 394 feet with a payload that can carry upwards of 100 tonnes, the SpaceX Starships deserved the limelight it received. In recent years, SpaceX and NASA have been using the famed Starships in numerous missions. From bringing supplies to the ISS to the recent DART missions. Starship for numerous missions. From supply runs to the ISS to the recent DART mission, however, things aren't turning out too well for the space venture company.

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Looming Bankruptcy Troubles SpaceX CEO Elon Musk

On Friday, Elon Musk sent out a company memo obtained by CNBC stating that he was upset at the lack of progress in the Raptor engines that powered the Starship rockets. He adds that the company is now facing genuine risks of bankruptcy if they cannot achieve a Starship flight rate of any less than bi-weekly.

Musk writes that the Raptor production crisis is worse than what the company expected. Several issues following the exiting of the company's prior senior management have only dug the company's grave deeper.

The news comes only a short week after 2 senior-level employees resigned from SpaceX, reports TheHill.

On the other hand, this isn't the first time Musk has faced the risks of bankruptcy. The CEO once said that another of his business ventures, Tesla, was also on the verge of bankruptcy when it ramped up the production of Model 3 from 2017-2019.

Although SpaceX is believed to be the second-most-valuable private company in the globe, the success of the company's Raptor engine productions holds a crucial part in its future including the CEO's infamous plans of populating Mars. The company has been developing its Starship rockets to launch both people and cargo to the Red Planet and the moon. Starship will require as many as 39 Raptor engines to power its orbital launches for such ambitious plans.

Likewise, the company's Starlink satellite-internet program also rests on the success of the Starship program. SpaceX has launched roughly 1,700 satellites using its Falcon 9 rockets, however, Musk reportedly stated in the memo that the newest Starlink variety would require Starship's extra mass and power.

Musk has also stated that the company plans on launching Starship into orbit from January to February, however, with the appearing lag of the Raptor engine production there is still no word if the company will proceed as planned.