SpaceX, created by Musk with the ambitious goal of facilitating access to space, could fail. It was the founding billionaire who raised the alarm about bankruptcy: what happens?
SpaceX risks bankruptcy: the possibility is real since it was Elon Musk who alarmed the employees.
The billionaire founder of the aerospace company, according to international media reports, sent an explicit email to his employees in late November.
In the letter, he said the missile company could be at risk of bankruptcy unless it can accelerate the production of Raptor Engines that power its Starship rockets.
The project SpaceX of Musk is going to fail? What do we know about the corporate crisis?
SpaceX: from space dreams to bankruptcy?
Musk returns to the scene, but not for Tesla. This time it is SpaceX (Space Exploration Technologies Corporation), a company founded by the billionaire in 2002 with the ambitious promise to make access to space more usable by conquering Mars.
However, according to what some media, such as CNBC, have learned, the project could be wrecked. On Tuesday, November 30, Elon Musk sent his employees a letter urging them to work even harder on building the Raptor engine, which is critical to powering his Starship rockets. The production of these elements would be insufficient and therefore would be bringing the entire project into crisis.
Of note, the Raptor is SpaceX’s methane engine that will be used to power the company’s next-generation launch system, called Starship.
SpaceX plans to employ Starship to bring people into space, and in April, NASA awarded the company a $ 2.9 billion contract to develop this rocket as a lunar lander. SpaceX has worked hard to create and test Starship prototypes at the company’s test site in Boca Chica, Texas, although the company has yet to launch the vehicle into orbit.
The goal is to conduct Starship’s first orbital launch in January or February 2022, as well as use the vehicle in launching the next-generation Starlink satellites.
SpaceX only launched the first version of these satellites, known as Version 1 or V1. Most of them do not have lasers to allow them to communicate with each other, although recent launches have included this capability.
Eventually, the aerospace company plans to launch its Version 2 or V2 satellites, which are much more massive and will include laser communication. And according to Musk, Starship is the only rocket capable of launching these larger satellites. But without enough Raptor engines, everything can stop.
What’s true about Musk’s SpaceX failure?
Musk tweeted, as usual, that SpaceX’s failure, while “unlikely”, is also “not impossible”, especially if the global economy suffers a recession before the company can get its Starship program installed and working.
There was no shortage of references to auto giants like General Motors and Chrysler, which both filed for bankruptcy during the Great Recession in 2009.
So what will happen to SpaceX?
The company is currently worth $ 100 billion, making it hard to believe it can truly face bankruptcy. In October, a Morgan Stanley survey found that a majority of institutional investors and industry experts believe SpaceX has the potential to become more valuable than Tesla, which has a market value of more than $ 1.1 trillion.
According to some experts, it is also possible that Musk is using the threat of failure as a motivational tactic for his employees. However, as CNBC noted, Raptor engines are essential to SpaceX’s financial future, as the company will need its Starship rockets to launch its next generation of Starlink satellites into orbit.
Do doubts remain about Musk’s space future: success or failure?