FAA grounds SpaceX Starship V3 following booster mishap ahead of IPO

The Federal Aviation Administration has ordered SpaceX to investigate a mishap involving the Super Heavy booster during the Starship V3 test flight on May 22. The regulator confirmed that the booster experienced engine failures during its return burn to the Gulf of America, resulting in an explosion. SpaceX is required to pause all further Starship test launches until the investigation is completed and the results are submitted to and approved by the FAA.

This incident marks the first test flight of SpaceX’s upgraded Starship V3 system, which features a redesigned booster and all-new third-generation Raptor engines. While the booster successfully separated from the Starship vehicle and passed through maximum dynamic pressure, it failed during the sustained burn intended to propel it back toward the launch site in South Texas. The Starship vehicle itself also experienced a failure, losing one of its six Raptor engines, which forced SpaceX to abandon the testing goal of performing another sustained burn in orbit.

The FAA stated that there are no reports of public injury or damage to public property resulting from the incident. The agency will oversee the SpaceX-led investigation, remain involved in every step of the process, and approve the final report, including any corrective actions. SpaceX did not immediately respond to requests for comment regarding the order.

The grounding of Starship diminishes the likelihood of another launch occurring before SpaceX’s anticipated initial public offering in mid-June. According to its IPO filing, the company is heavily reliant on the reliability and reusability of the Starship system to support future growth. Starlink remains SpaceX’s biggest revenue generator and currently its only profitable business, with the company’s financial outlook tied to the success of its heavy-lift launch capabilities.

The FAA has previously ordered SpaceX to perform multiple mishap investigations during the development of Starship. The federal agency also ordered SpaceX rival Blue Origin to conduct mishap investigations for its New Glenn rocket. Blue Origin was cleared to fly again last week, with a fourth launch attempt expected in the next month or so, highlighting the regulatory scrutiny applied to all major players in the commercial space sector.