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Starlink is at risk: Elon Musk says SpaceX faces bankruptcy

All the projects related to the billionaire businessman Elon Musk are wrapped in a halo of magnificence that is supported both by their interest (some science fiction) and high-profile marketing. But internally, all that glitters is not gold, as recognized by the same executive.

An internal email sent by Musk to his staff by CNBC and Space Explored this week indicates that the Raptor engine production crisis is worse than SpaceX had acknowledged. They are keys to Starlink, the ambitious space internet project, and also for other space projects.

The mail, sent on a day as unusual as Thanksgiving (America’s most significant holiday), asks employees to get their act together. Musk calls “a disaster”. Furthermore, it speaks of bankruptcy if the problems are not solved:

«It all comes down to we face a real risk of bankruptcy if we can’t achieve a Starship flight rate of at least once every two weeks next year«.

The problem appears to be related to SpaceX’s ability to produce engines to support launches of the number of satellites required for its Starlink Internet service. Musk explains in the email that SpaceX is increasing production of terminals that Starlink customers will use to access the Internet. SpaceX’s plans to build millions of units per year «will absorb massive capitalAnd they will be useless unless the company can put enough satellites into orbit.

In the Starlink announcement, Musk spoke that they would achieve a “commercial” scale with which other rivals could not compete, having technologies, rockets and their own launch platform for the deployment of satellites. A huge number of them are needed to complete the project.

Starlink

Starlink: too many satellites

The project contemplated in its initial conception a mega-constellation of up to 42,000 satellites. And thank goodness that the authorities granted permission to launch ‘only’ 12,000. A number that is considered sufficient to guarantee the broadband services that Musk intends to offer.

Musk’s project is the most ambitious and the most advanced in the ‘Space Internet’ race. Broadband Internet services from space, which has become a new playing field for the telecommunications industry. There are several companies that have projects underway, from Amazon with the space division of Jeff Bezos’ company, Blue Origin, and other companies such as Kepler, Telesat Canada, OneWeb, LeoSat or the Spanish Hispasat.

SpaceX developed Raptor engines to power Starship rockets that are used both to launch Starlink satellites and for future lunar and Martian space missions. And there are production problems so serious as to make Musk speak of “bankruptcy.”

Last week, CNBC reported that two SpaceX vice presidents in charge of rocket production they had been fired. Sources said SpaceX Vice President of Propulsion Will Heltsley and SpaceX Launch and Mission Operations Lee Rosen had left the company. Also the senior director of launch and mission operations, Ricky Lim. All three had been with the company for years.

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