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Could SpaceX's financial trouble affect McLennan County?

Posted at 8:10 PM, Dec 02, 2021
and last updated 2021-12-03 22:30:24-05

WACO, TX — Billionaire Elon Musk has talked about potential bankruptcy for his Space-X Corporation. In a letter to his staff, CEO and founder Musk brought up the potential for bankruptcy.

He blamed production delays and said the company could be in trouble if, "they cannot achieve a starship flight rate of at least once every two weeks next year."

The letter went out shortly after a SpaceX and McLennan County agreement for a 50,000 square foot expansion.

"It's going to bring a lot of high paying jobs to McLennan county," Judge Scott Felton, president of the Waco McLennan County Economic Development Corporation, told 25 News. "That's the goal."

That goal may not be met if the company goes under. The 500 jobs promised and the $6 million the county agreed to pay towards the $150 million projects could never happen.

"We pledged $6 million, but it's not all upfront," Judge Felton said. "It's actually over time as they complete different phases and hire a certain amount of people to be able to access that money."

The first payout comes after the company makes a commitment to putting in utilities and other upfront costs. More comes as people are hired and the company invests in equipment.

"Most of the money we put out is only after they made the investment so we would have very little money we would have to call back," he said. "It would just be funds we wouldn't release because they didn't hit those criteria."

Judge Felton said the company has not mentioned any plans to back out of their agreement at this time.