Elon Emails

Raptor production crisis and 'genuine risk of bankruptcy'

From:
Elon Musk
Date:
November 26, 2021 (Sent the day after Thanksgiving 2021 (Friday Nov 26); first reported by Space Explored on Nov 29 and CNBC on Nov 30)
To:
All SpaceX employees
Unfortunately, the Raptor production crisis is much worse than it had seemed a few weeks ago. As we have dug into the issues following the exiting of prior senior management, they have unfortunately turned out to be far more severe than was reported. There is no way to sugarcoat this. I was going to take this weekend off, as my first weekend off in a long time, but instead, I will be on the Raptor line all night and through the weekend. 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. The consequences for SpaceX if we can not get enough reliable Raptors made is that we then can't fly Starship, which means we then can't fly Starlink Satellite V2 (Falcon has neither the volume nor the mass to orbit needed for satellite V2). 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. 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. Thanks, Elon

About this email

Musk tells SpaceX staff that the Raptor engine production problems are far worse than reported after senior management left, cancels his weekend off and calls for all hands on deck. He warns that without a Starship flight rate of once every two weeks in 2022, Starlink V2 cannot fly and the company faces genuine bankruptcy risk.

Notes

Musk publicly followed up on Twitter after the leak, saying bankruptcy was unlikely but not impossible.

Where it came from

Leaked to press; attribution widely reported.

SpaceX, company-wide memo. Tags: raptor, starship, starlink, bankruptcy, urgency, holidays