SpaceX has been ordered to suspend launches of its Starship rocket while the company and the Federal Aviation Administration investigate the cause of an explosion shortly after liftoff in Texas on Thursday.
"The FAA requested that SpaceX conduct an accident investigation into the loss of the Starship vehicle," the regulator said on Friday. "There have been no reports of public injuries, and the FAA is working with SpaceX and relevant authorities to confirm that Turks and reports of damage to public property in the Caicos Islands.”
The U.S. Federal Aviation Administration (FAA) slowed, rerouted or delayed dozens of flights as debris from the explosion fell over the northern Caribbean. Video posted on social media showed it spectacularly disintegrating in a burst of flames.
SpaceX described the incident as "a rapid unplanned disassembly," and preliminary data suggests the fire occurred in the tail or rear of the aircraft. Debris had "fallen into the Atlantic Ocean within the predetermined danger zone."
SpaceX added that the failure was "a reminder that development testing is by definition unpredictable." Elon Musk responded to a video of the event saying, "Success is uncertain, but entertainment is guaranteed."
The incident was a setback for Musk's $350 billion space technology company, just hours after rival Jeff Bezos' Blue Origin successfully launched.
However, upon return to Earth, SpaceX did manage to once again "capture" the flight's reusable rocket booster stage with its giant "Mechazilla" robotic arm.
Musk posted on his social media platform next month."
The FAA said it "will be involved in every step of the SpaceX-led accident investigation process and must approve the final report, including any corrective actions."
"The return flight was based on the FAA's determination that any systems, processes or procedures associated with the accident did not impact public safety."
The flight was the seventh test launch of Starship, a 400-foot rocket powered by Raptor engines that first launched into space in November 2023.
The incident occurred shortly after Blue Origin's small New Glenn rocket successfully launched for the first time with the support of Amazon founder Bezos, who is challenging Musk in the satellite launch market. New Glenn's launch was five years later than originally planned.
Earlier on Thursday, Bezos posted on X wishing Musk and SpaceX good luck.
A month ago, SpaceX gained a $350 billion valuation through an employee stock sale, making it the world's most valuable private startup. That marks a significant jump from its valuation of $210 billion six months ago.
Investors have rushed to back SpaceX in part because of Musk's close relationship with incoming U.S. President Donald Trump, which has led to a "Trump bump" in the valuations of Musk's entities, according to people familiar with the matter.
SpaceX leads the race to commercialize space flight, taking a giant step toward Musk's ultimate goal of developing reusable rockets that will take humanity toward a multi-planetary future.
Founded in 2002, the company became the first private company to transport humans to the International Space Station in 2020. Last year, SpaceX was asked to return stranded astronauts from the space station.