Elon Musk’s SpaceX Seeks Help From Mexico To Recover Starship Debris; Regulatory Troubles Grow

Published : Jun 27, 2025, 10:20 AM IST
https://stocktwits.com/news-articles/markets/equity/elon-musk-s-space-x-seeks-help-from-mexico-to-recover-starship-debris-regulatory-troubles-grow/chmgSGcRRIe

Synopsis

The development follows Mexican President Claudia Sheinbaum's statement on Wednesday that her administration is investigating the security and environmental impact of rocket launches.

SpaceX said on Thursday it was facing trouble with clearing the debris of its Starship, which exploded dramatically earlier this month during testing in Texas, and asked for help across the border from Mexican authorities.

Mexican President Claudia Sheinbaum said on Wednesday her administration is investigating the security and environmental impact of rocket launches, particularly on the state of Tamaulipas.

The latest Starship explosion occurred last week during an engine test, which the company described as a “major anomaly.”

"Despite SpaceX's attempts to recover the anomaly-related debris, which is and remains the tangible property of SpaceX, these attempts have been hindered by unauthorized parties trespassing on private property," the Elon Musk-headed company said.

Several live video streams showed that the Starship, the biggest and heaviest launch vehicle ever built, experienced at least two explosions, and a fireball engulfed the night skies, much to the shock of viewers. While nobody was harmed in the incident, SpaceX had urged nearby residents to steer clear of the area.

"Despite SpaceX's attempts to recover the anomaly-related debris, which is and remains the tangible property of SpaceX, these attempts have been hindered by unauthorized parties trespassing on private property," the company said.

SpaceX, led by billionaire entrepreneur Elon Musk, has requested assistance from the Mexican government, both local and federal, for the recovery process and has also offered resources and help with the cleanup.

Last week’s incident marked the fourth consecutive time in 2025 that SpaceX lost the 400-foot-tall launch vehicle, dealing another blow to the company, which aims to carry NASA astronauts to the moon by mid-2027.

The company is also reportedly facing a U.S. federal investigation after a crane collapsed at the company’s Starbase, Texas, facility on Tuesday.

While it’s not known if there have been any injuries, CNBC reported, citing the Occupational Safety and Health Administration, that more details will be available after the investigation is complete.

Earlier this month, Musk and Trump sparred online over the U.S. President’s signature tax bill, which will add trillions to the federal debt. During the war of words, Trump threatened to cancel all contracts with Musk’s companies. Taking the threats seriously, Musk said he would scrap SpaceX’s Dragon spacecraft before backing down.

Amid SpaceX’s troubles, retail Sentiment on Stocktwits about its rival, Rocket Lab, has improved to the ‘extremely bullish’ territory, following recent contract wins.

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