SpaceX Says It Will Lose $4 Million Per Day If Starship Launches Are Suspended By Court

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In its response to a lawsuit by the environment group Save RGV, SpaceX argues that halting Starship tests in Texas will cost the firm millions of dollars daily and risk its ability to earn revenue and milestone payments for agreements that it has signed with the Air Force and other bodies. SpaceX's water deluge system for the Starship Super Heavy booster requires releasing copious amounts of water to cool the pad during launch, and in its complaint filed yesterday, Save RGV sought the court to stop SpaceX from using the deluge system until its claims were addressed.

In its response to the suit, SpaceX stated to the court that any temporary injunctions stopping it from launching Starship would cost the firm $4 million per day "with little to no return" and jeopardize its plans to launch Starshield satellites, develop a cargo system for the military and launch third generation Starlink satellites.

SpaceX Cites Billions Of Dollars In Starlink & Starship Investments To Counter Any Potential Restraining Order Against Starship Tests

In its response to Save RGV's lawsuit, which had requested the U.S. District Court for the Southern District of Texas, Brownsville Division to issue restraining orders to to stop SpaceX from using the deluge system until Save RGV's claims were adjudicated, SpaceX responded in its filing that any such orders would cause it millions of dollars in losses. These losses would be in the form of costs incurred to run Starbase, and SpaceX believes that the restraining orders would "delay realization of returns on these capital investments, none of which would be recoverable from Plaintiff."

According to the firm, these costs "include personnel, facilities, overhead, and more" for its Starbase facilities. Among the workers employed by SpaceX at the site are engineers, technicians, office staff, contractors, and subcontractors, which total more than 1,950 individuals.

SpaceX argues that in case of a temporary restraining order, it would have to "continue paying them, but without significant work for them to do, or lay them off." The total cost of operating the Starship development program is $4 million per day, according to the company, which it would have to incur without any return as "launching is needed to continue program progress."

In addition to the daily expenditure, SpaceX also argues that restraining orders would also delay the revenue that it receives for achieving milestones under Starship contracts. It points out that more than "$149 million of payments" for the Rocket Cargo transportation program for the Air Force "are tied to Starship-Super Heavy development and performance milestones, including launch and landing of an integrated vehicle."

"A two-to-eight-month grounding of tests and launches would delay millions of dollars in revenue under the Rocket Cargo contract," says SpaceX, "and result in at least a day-for-day delay of this important military initiative."

Any delay could also lead to NASA canceling its second Moon landing contract with SpaceX, argues the firm. SpaceX is set to launch Starship Flight 5 tomorrow, pending approval from the FAA, and it announced yesterday that a launch license is more likely than not. Save RGV also filed its suit against SpaceX yesterday, imploring the court to stop further use of the water deluge system before its claims are resolved.

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