SpaceX Warns $4 Million Daily Loss If Starship Launches Are Halted Due to Lawsuit

SpaceX could lose $4 million per day if a lawsuit halts Starship launches in Texas. The lawsuit, filed by environmental group Save RGV, challenges SpaceX's water deluge system. The company argues that delays would impact military contracts and threaten over 1,950 jobs at its Starbase facility.

SpaceX Faces Legal Battle Over Water Deluge System, Warns of $4 Million Daily Loss if Blocked

SpaceX contends that the company's ability to fulfill contractual obligations with the U.S. Air Force and other entities would be jeopardized and that canceling its Starship tests in Texas would result in substantial financial losses, costing the company millions of dollars daily. According to Wccftech, this argument was made in response to a lawsuit by the environmental group Save RGV. The lawsuit is centered on SpaceX's water deluge system, which discharges substantial water to cool the launch pad during the Starship Super Heavy booster's liftoff. Save RGV has requested that the court prevent SpaceX from utilizing this system until its environmental concerns are resolved.

SpaceX argues in its court filing that a temporary injunction that prevents Starship launches would result in a daily cost of $4 million and negligible returns. The company underscored that such delays would hinder its endeavors to deploy third-generation Starlink satellites, develop a military cargo system, and launch Starshield satellites.

Save RGV's lawsuit, filed in the U.S. District Court for the Southern District of Texas, Brownsville Division, attempts to prevent SpaceX from utilizing the water deluge system until the court determines its claims. Nevertheless, SpaceX responded that imposing such restraining orders would result in millions of dollars in operational losses, including the expenses associated with the maintenance of its Starbase facility in Texas. The company emphasized that the continued employment of over 1,950 employees at Starbase, including engineers, technicians, administrative staff, contractors, and subcontractors, would be jeopardized in the event of a halt to testing and launches.

SpaceX Warns of Job Cuts and Delayed Contracts if Starship Launches Are Suspended

SpaceX also contended that it would be confronted with a challenging decision: either to continue paying these employees for work that is not meaningful or to terminate their employment. The company emphasized that the lack of the ability to launch, which is essential for the program's progress, would render the $4 million daily cost of operating the Starship development program an unsustainable encumbrance.

Furthermore, SpaceX cautioned that revenue associated with milestones in its contracts, particularly with the U.S. Air Force's Rocket Cargo transportation program, would be delayed by restraining orders. According to the company, starship-Super Heavy development milestones, such as the launch and landing of an integrated vehicle, are the basis for over $149 million in payments under this program. SpaceX asserts that a two- to eight-month testing suspension would lead to daily delays in completing these milestones and impact the broader military initiative.

SpaceX also feared that any delays could result in NASA canceling its second Moon landing contract with the company. Starship Flight 5 is expected to launch on October 13, subject to Federal Aviation Administration (FAA) sanction. According to SpaceX, it is confident about obtaining the launch license. However, Save RGV filed its lawsuit on October 11, requesting that the court prevent the continued use of the water inundation system until its concerns are resolved.