SpaceX could soon go bankrupt, says Elon Musk

SpaceX’s financial situation is on the brink. In an email sent to his employees, Elon Musk admits that the production problems encountered could well lead the firm to bankruptcy. He asks them to make every effort to avoid the worst.

Credit: SpaceX

Starship, SpaceX’s new rocket, is in production. This is a key step in the company’s development, since the rocket will, according to Elon Musk’s plans, the one that will transport the first humans to Mars. However, this daunting project may never see the light of day. Indeed, the teams encounter major problems in the manufacture of the Raptor, the engine of Starship. Such big problems, in fact, that they may well cause the loss of the business.

In an email sent to its employees in the run-up to Thanksgiving, Elon Musk shares his concerns on this subject. “Unfortunately, the Raptor production crisis is much more serious than it appeared a few weeks ago”says the CEO. “As we dug deeper into the issues following the departure of the former management, they unfortunately turned out to be much more serious than had been announced. There is no way to sweeten the situation. »

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This “former management” to whom Elon Musk refers is undoubtedly Will Heltsley, former vice president in charge of propulsion. Production problems would have pushed the latter to leave the companyalong with Lee Rosen and Rick Lim, respectively vice president and director of missions and launch operations.

The CEO asks his employees to stay at work during the holidays at all costsarguing that “we will need everyone on deck to recover from what is, quite frankly, a disaster”. Elon Musk also notes that the V1 satellite, used for the deployment of the Starlink network, is financially weak. As a reminder, when the offer was launched, the firm lost $1000 per new subscription.

“In reality, we risk bankruptcy if we fail to fly spacecraft at least once every two weeks next year”concludes Elon Musk. The next few months will therefore be crucial for the space enterprise. The businessman will have to quickly find a solution if he now wants his promise of 12 Starship flights in 2022.

Source: Space Explored

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