Elon Musk’s SpaceX plans raise major red flags for regulators | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Elon Musk is facing problems from more than just his flagship company. As Tesla stock continues to trend downward amid declining sales and consumer backlash, its future appears increasingly uncertain.

With the electric vehicle (EV) leader struggling so much, it can be easy to overlook the fact that Musk’s other companies are also dealing with problems. One of his other enterprises is off to an extremely discouraging start this year, after multiple public failures, likely severely diminishing confidence in its products.

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The company in question is SpaceX, Musk’s space exploration and technology startup, which became the world’s most valuable privately held company in December 2024. Unfortunately, since then, it has attempted multiple rocket launches that haven’t gone well, making things even more complicated for Musk.

Now the company is gearing up to continue operations in the coming months, raising concerns among regulators.

Regulators’ concerns are complicating the next rocket launch for Elon Musk’s SpaceX.

Image source&colon; Terence Lewis/Icon Sportswire via Getty Images

SpaceX’s road to takeoff may not be smooth

Anyone who follows SpaceX’s recent progress knows that the company isn’t off to a good start in 2025. The company has launched multiple Starship rockets this year, a central component of Musk’s plan to help colonize Mars, both of which have ended in a literal explosion.

This comes at a time when SpaceX had previously seemed poised to usher in a new era of space tourism, something Musk had been highly focused on for years. With his new proximity to President Donald Trump, it seemed likelier than ever that his rocket company could reach new heights.

However, after multiple explosions in just a few months, SpaceX may have a difficult time convincing regulators that its problems are over. The company is preparing to attempt another launch, which will send its Starship 9 rocket over the Caribbean, specifically over several British territories.

According to reports, the previous SpaceX launches resulted in debris falling on these exact islands, a group that includes the British Virgin Islands, Turks and Caicos, and Anguilla. This has prompted concern among UK regulators that the people of these islands could be in danger if the SpaceX launch proceeds as planned.

“The worries from the UK government, detailed in a letter to a top American diplomat on Wednesday, follow the Federal Aviation Administration’s decision last week to grant SpaceX’s request for a fivefold increase in the number of Starship launches allowed this year, from five to 25,” reports ProPublica.

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The outlet describes this space vessel as the world’s most powerful rocket, noting that increasing its launches seems to be a priority for Musk. SpaceX has made the same claim, stating that it is “capable of carrying up to 150 metric tonnes fully reusable and 250 metric tonnes expendable” into space.

Impacted residents haven’t forgotten the first two SpaceX explosions

For the people of these islands, the prospect of another SpaceX launch could be a scary thought, and for good reason. Following the Starship 7 explosion in January, pieces of the rocket were found along beaches and roads in Turks and Caicos, and one resident reported that the debris damaged their car.

As TheStreet’s Veronika Bondarenko reported, when the Starship 8 exploded three months later, flights in Orlando, Florida, were unable to take off due to what airport authorities described as “space launch debris in the area.” People on the Florida coast and across the Bahamas claimed to be able to see red streaks in the sky from the failed launch.

With that in mind, British regulators have asked the U.S. Department of State to consider having the launch trajectory or site changed to prevent further risks to British territories. They have also requested that more information regarding SpaceX’s planned safety measures be provided before the launch of Starship 9, expected to happen next week.

This makes it quite clear that they do not trust Musk or his company. SpaceX recently gained federal approval to launch more rockets in South Texas, but that doesn’t mean regulatory agencies are confident that more missions won’t mean more disasters post-launch.