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Blue Origin rocket launch fails after engine catches fire
Blue Origin’s suborbital New Shepard rocket suffered a catastrophic engine failure during its 23rd launch attempt, ending a seven-year streak of 21 successes.
Following a handful of mostly weather-related delays that pushed New Shepard’s 23rd launch about two weeks past its original August 31st target, the single-stage vehicle lifted off from Blue Origin’s Van Horn, Texas launch site around 10:25 am CDT (14:25 UTC) on September 12th. Measuring about 15 meters (49 ft) tall, 3.7 meters (12.1 ft) wide, and capable of producing about 50 tons (~110,000 lbf) of thrust with its lone BE-3 engine at full throttle, New Shepard only made it about halfway through its nominal powered ascent before catastrophe struck.
The first signs of trouble appeared about 62 seconds after liftoff in the form of flickers and flashes in New Shepard’s exhaust, which is normally almost transparent. Less than two seconds after the first seemingly harmless flash, flames unintentionally burst from New Shepard’s engine section and quickly surrounded its BE-3PM engine. Less than a second after that, the rocket’s aft and began shedding pieces and stopped producing thrust, triggering a solid rocket motor stored inside its deployable capsule.
About a second after the incident began, the capsule’s abort motor ignited and carried the suborbital spacecraft safely away from the failing New Shepard booster. The capsule ultimately coasted to an apogee of 11.4 kilometers (7.1 miles) – almost ten times lower than nominal – before descending back to Earth, deploying its parachute system, and safely touching down in the Texas desert scrub. Thankfully, NS-23 was only carrying experiments, and no humans were at risk. Had a crew of suborbital tourists been aboard, they would have likely been a little battered but otherwise completely unharmed.
..there is room for a lot of speculation ?– i did a frame by frame Picture – on the bottom row you can see some parts falling away. maybe the nozzle fell apart?!? pic.twitter.com/OOzPkPiX6G— Flo (@FloSpacenerd) September 12, 2022
While any failure of a rocket is unfortunate, the failure of a rocket nominally designed to launch humans can have even worse repercussions. However, thanks to the seemingly flawless unplanned performance of New Shepard’s abort system, it’s safe to say that the day could have gone much worse for Blue Origin.
The failure is still not going to do the reputation of Blue Origin or New Shepard any favors. It also invites less than favorable comparisons with SpaceX, a different spaceflight startup also funded and founded by a tech tycoon in the early 2000s.
Founded a year and a half after Blue Origin, SpaceX, in comparison, reached orbit with Falcon 1 in 2008. In June 2010, it successfully debuted Falcon 9, an orbital-class rocket roughly 20 times larger. In 2012, Falcon 9 successfully launched an orbital Dragon spacecraft which became the first private vehicle to dock to the International Space Station. In January 2015, it attempted to recover a Falcon 9 booster for the first time. In December 2015, one month after Blue Origin’s first successful New Shepard landing, SpaceX aced its first Falcon 9 booster landing.
Nine months later, Falcon 9 suffered a catastrophic failure during prelaunch testing in September 2016 and didn’t return to flight until January 2017. That is where, for the most part, the paths of Blue Origin and SpaceX almost entirely diverged – but not in any obvious way. Instead, after a successful suborbital launch in October 2016, New Shepard didn’t fly again until December 2017. In the roughly six years between October 2016 and September 2022, New Shepard completed 10 uncrewed suborbital launches, 6 suborbital tourist launches, and suffered one failure during another uncrewed mission – 18 total launches.
Despite suffering a catastrophic failure that destroyed a customer’s multimillion-dollar satellite in September 2016, SpaceX returned to flight four months later, completed 150 orbital Falcon launches without fail in the same period; debuted the world’s largest operational rocket, Falcon Heavy, and completed two additional launches with it; debuted Crew Dragon and Cargo Dragon 2 on Falcon 9; launched its first astronauts into orbit, launched its first operational astronaut transport mission for NASA, launched its first two Starlink internet satellite prototypes, launched another 60 refined Starlink prototypes, began operational Falcon 9 Starlink launches, built and launched more than 3000 Starlink satellites total; landed 130+ Falcon boosters, and reuse Falcon boosters 117 times.


The differences could not be more stark or strange, given that both companies have been operating more or less side by side and working towards similar goals for as long as they’ve existed. To Blue Origin’s credit, the company managed a record six New Shepard launches – three carrying tourists – in 2021. NS-23 was its fourth planned launch in 2022, suggesting that it could have achieved a similar cadence this year if the mission had had a different fate. Instead, the launch failure has triggered an anomaly investigation that will search for the root cause and try to uncover shortcomings that will then need to be rectified before New Shepard can return to flight. Given that Blue Origin once went 15 months between successful New Shepard launches, it’s impossible to say how long that process will take.
In the meantime, the apparent failure of New Shepard’s BE-3PM engine could trigger investigations into Blue Origin’s other engine programs. While substantially different, BE-3U, a variant optimized for the upper stage of New Glenn, Blue Origin’s first orbital rocket, likely shares the most in common with New Shepard’s BE-3PM. BE-7, a small engine meant to power a Moon lander, could also be impacted.
Most importantly, Blue Origin is also in the midst of finally preparing two much more powerful and far more complex BE-4 engines for customer United Launch Alliance (ULA). Years behind schedule, Blue Origin completed the first two theoretically flightworthy BE-4 engines and began putting them through qualification testing earlier this year. It wants to ship those engines to ULA as soon as possible to avoid delaying the debut of the customer’s new Vulcan Centaur rocket. BE-3PM and BE-4 probably don’t share a single part, but many Blue Origin employees have likely worked on both programs, and the same Blue Origin leadership has certainly overseen both. As long as there’s any form of commonality, no matter how abstract, there’s always a risk that the underlying cause of problems in one program could be present in others.
Ultimately, it’s unlikely that there will be any serious connection. The New Shepard booster that failed on NS-23 was almost five years old and was flying for a record-breaking ninth time. It’s possible that Blue Origin was privately worried about the possibility of failure while pushing the envelope, but it offered no qualifications while discussing the mission. SpaceX CEO Elon Musk, in comparison, has almost always made it clear that failure is a possibility when the company attempts ‘firsts’ of any kind.
SpaceX recently launched and recovered the same Falcon 9 booster for the 14th time, setting its own internal record. As a result, that lone Falcon 9 booster, B1058, has flown as many times in the last 31 months as all New Shepard boosters combined have flown in the last 45 months.
Finally, while no company should be put in that position, Blue Origin deserves praise for its live coverage of the anomaly. Instead of immediately cutting the feeds, which would be what most providers would be expected to do during an operational launch, Blue Origin continued to broadcast views of the failure and provide live commentary until New Shepard’s capsule touched down well ahead of schedule.
News
Tesla dispels reports of ‘sales suspension’ in California
“This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.”
Tesla has dispelled reports that it is facing a thirty-day sales suspension in California after the state’s Department of Motor Vehicles (DMV) issued a penalty to the company after a judge ruled it “misled consumers about its driver-assistance technology.”
On Tuesday, Bloomberg reported that the California DMV was planning to adopt the penalty but decided to put it on ice for ninety days, giving Tesla an opportunity to “come into compliance.”
Tesla enters interesting situation with Full Self-Driving in California
Tesla responded to the report on Tuesday evening, after it came out, stating that this was a “consumer protection” order that was brought up over its use of the term “Autopilot.”
The company said “not one single customer came forward to say there’s a problem,” yet a judge and the DMV determined it was, so they want to apply the penalty if Tesla doesn’t oblige.
However, Tesla said that its sales operations in California “will continue uninterrupted.”
It confirmed this in an X post on Tuesday night:
This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.
— Tesla North America (@tesla_na) December 17, 2025
The report and the decision by the DMV and Judge involved sparked outrage from the Tesla community, who stated that it should do its best to get out of California.
One X post said California “didn’t deserve” what Tesla had done for it in terms of employment, engineering, and innovation.
Tesla has used Autopilot and Full Self-Driving for years, but it did add the term “(Supervised)” to the end of the FSD suite earlier this year, potentially aiming to protect itself from instances like this one.
This is the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” naming. Previous Transportation Secretary Pete Buttigieg was vocally critical of the use of the name “Full Self-Driving,” as well as “Autopilot.”
News
New EV tax credit rule could impact many EV buyers
We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date. However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.
Tesla owners could be impacted by a new EV tax credit rule, which seems to be a new hoop to jump through for those who benefited from the “extension,” which allowed orderers to take delivery after the loss of the $7,500 discount.
After the Trump Administration initiated the phase-out of the $7,500 EV tax credit, many were happy to see the rules had been changed slightly, as deliveries could occur after the September 30 cutoff as long as orders were placed before the end of that month.
However, there appears to be a new threshold that EV buyers will have to go through, and it will impact their ability to get the credit, at least at the Point of Sale, for now.
Delivery must be completed by the end of the year, and buyers must take possession of the car by December 31, 2025, or they will lose the tax credit. The U.S. government will be closing the tax credit portal, which allows people to claim the credit at the Point of Sale.
🚨UPDATE: $7,500 Tax Credit Portal “Closes By End of Year”.
This is bad news for pending Tesla buyers (MYP) looking to lock in the $7,500 Tax Credit.
“it looks like the portal closes by end of the year so there be no way for us to guarantee the funds however, we will try our… pic.twitter.com/LnWiaXL30k
— DennisCW | wen my L (@DennisCW_) December 15, 2025
We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date.
However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.
If not, the order can still go through, but the buyer will not be able to claim the tax credit, meaning they will pay full price for the vehicle.
This puts some buyers in a strange limbo, especially if they placed an order for the Model Y Performance. Some deliveries have already taken place, and some are scheduled before the end of the month, but many others are not expecting deliveries until January.
Elon Musk
Elon Musk takes latest barb at Bill Gates over Tesla short position
Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now
Elon Musk took his latest barb at former Microsoft CEO Bill Gates over his short position against the company, which the two have had some tensions over for a number of years.
Gates admitted to Musk several years ago through a text message that he still held a short position against his sustainable car and energy company. Ironically, Gates had contacted Musk to explore philanthropic opportunities.
Elon Musk explains Bill Gates beef: He ‘placed a massive bet on Tesla dying’
Musk said he could not take the request seriously, especially as Gates was hoping to make money on the downfall of the one company taking EVs seriously.
The Tesla frontman has continued to take shots at Gates over the years from time to time, but the latest comment came as Musk’s net worth swelled to over $600 billion. He became the first person ever to reach that threshold earlier this week, when Tesla shares increased due to Robotaxi testing without any occupants.
Musk refreshed everyone’s memory with the recent post, stating that if Gates still has his short position against Tesla, he would have lost over $10 billion by now:
Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now
— Elon Musk (@elonmusk) December 17, 2025
Just a month ago, in mid-November, Musk issued his final warning to Gates over the short position, speculating whether the former Microsoft frontman had still held the bet against Tesla.
“If Gates hasn’t fully closed out the crazy short position he has held against Tesla for ~8 years, he had better do so soon,” Musk said. This came in response to The Gates Foundation dumping 65 percent of its Microsoft position.
Tesla CEO Elon Musk sends final warning to Bill Gates over short position
Musk’s involvement in the U.S. government also drew criticism from Gates, as he said that the reductions proposed by DOGE against U.S.A.I.D. were “stunning” and could cause “millions of additional deaths of kids.”
“Gates is a huge liar,” Musk responded.
It is not known whether Gates still holds his Tesla short position.