SpaceXClaims $4 Million Daily Loss If Starship Launch Halted by Court

SpaceX, the private space exploration company, has asserted that a court-ordered halt toits Starship testing in Texas would cost the company millions of dollars per day, jeopardizing its revenue generation and milestone payments tied to contracts with the Air Force and otherentities.

This statement comes in response to a lawsuit filed by the environmental group Save RGV, which seeks to prevent SpaceX from using its drainage system until itsconcerns are addressed. In a filing yesterday, Save RGV requested a court order to halt SpaceX’s Starship operations.

In its response to the lawsuit, SpaceX argues that any temporary injunction preventing its Starship launches would result in a daily loss of $4million, with little to no return, and endanger its plans to launch the Starshield satellite, develop military cargo systems, and deploy the third generation of Starlink satellites.

Save RGV’s lawsuit seeks a restraining order from theU.S. District Court for the Southern District of Texas, Brownsville Division, to prevent SpaceX from using its drainage system until Save RGV’s claims are adjudicated. SpaceX, in its filing, counters that any such order would inflict millions of dollars in losses. These losses would manifest in the form of operational costsat the Starship base, which SpaceX argues would delay the realization of returns on these capital investments, which cannot be recouped from the Plaintiffs.

According to the company, these costs include personnel, facilities, administrative expenses, etc., at the Starship base. SpaceX employs over 1950 individuals at thebase, including engineers, technicians, office staff, contractors, and subcontractors.

SpaceX contends that under a temporary restraining order, it would be forced to continue to pay them salaries, but not give them significant work, or lay them off. The company claims that the total operational cost of the Starship development program is $4million per day, a cost it would have to bear without any return due to the need for launches to continue the program’s progress.

Beyond daily expenses, SpaceX argues that the restraining order would also delay revenue generation from milestone achievements under its Starship contracts. It points to over $149 million in payments for the Air Force’s Rocket Cargo Transport program, which are tied to Starship-Super Heavy development and performance milestones, including integrated vehicle launches and landings.

The ongoing legal battle between SpaceX and Save RGV highlights the complex interplay between environmental concerns and the rapid advancement of space exploration. The outcome of this case could have significantimplications for the future of SpaceX’s ambitious Starship program and its role in the burgeoning space economy.

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