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Blue Origin rocket launch fails after engine catches fire

Blue Origin's 23rd New Shepard launch has ended in failure. (Blue Origin)

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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.

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.

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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.

(SpaceX)
Completed on September 11th, Falcon 9’s latest mission was its 173rd successful orbital launch. (Richard Angle)

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.

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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.

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Eric Ralph is Teslarati's senior spaceflight reporter and has been covering the industry in some capacity for almost half a decade, largely spurred in 2016 by a trip to Mexico to watch Elon Musk reveal SpaceX's plans for Mars in person. Aside from spreading interest and excitement about spaceflight far and wide, his primary goal is to cover humanity's ongoing efforts to expand beyond Earth to the Moon, Mars, and elsewhere.

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Tesla rolling out Robotaxi pilot in SF Bay Area this weekend: report

Similar to the Austin pilot, the Robotaxi rides will reportedly be a paid service.

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Credit: @AdanGuajardo/X

Tesla is reportedly preparing to launch a Robotaxi pilot program in the Bay Area this weekend, with invites to a select number of customers reportedly being sent out as early as this Friday.

The update was shared in a report from Insider, which cited an internal memo from the electric vehicle maker.

New Robotaxi service launch

According to Insider, the Robotaxi service in the Bay Area is set to launch as soon as Friday. Thus, some Tesla owners in the area should receive invites to use the driverless ride-hailing service. Similar to the Austin pilot, the Robotaxi rides will reportedly be a paid service.

The publication noted that the Robotaxi service’s geofence in its Bay Area launch will be quite large, as it will include Marin, much of the East Bay, San Francisco, and San Jose. This is not surprising as California has long been saturated with Teslas, and it is home to several of the electric vehicle maker’s key facilities.

Unlike the Austin pilot, the Tesla Robotaxi service’s pilot in the Bay Area will use safety drivers seated in the driver’s seat. These drivers will be able to manually take over using the steering wheel and brakes as needed. As per a spokesperson from the California DMV, the agency recently met with Tesla but the company is yet to submit a formal application to operate fully driverless cars. 

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Tesla Robotaxi expansion

Interestingly enough, Tesla did tease the release of its Robotaxi service to the Bay Area in its second quarter earnings call. While discussing the service, Tesla VP of Autopilot/AI Software Ashok Elluswamy mentioned that the company will initially be rolling out Robotaxis with safety drivers in the San Francisco Bay Area. He did, however, also highlight that the electric vehicle maker is working hard to get government permission to release the service for consumers.

“The next thing to expand would be in the San Francisco Bay Area. We are working with the government to get approval here and, in the meanwhile, launch the service without the person in the driver seat just to expedite and while we wait for regulatory approval,” he stated.

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Tesla is ready with a perfect counter to the end of US EV tax credits

Tesla executives have mentioned that these more affordable models would resemble the company’s current lineup.

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Credit: Tesla Asia/X

The United States’ electric vehicle tax credit is coming to an end at the end of the third quarter. Tesla, the country’s leading electric vehicle maker, is ready to meet this challenge with a rather simple but clever counter. 

Tesla executives outlined this strategy in the recently held Q2 2025 earnings call.

End of the US EV tax credit

While Elon Musk has always maintained that he prefers a market with no EV tax credit, he also emphasized that he supports the rollback of any incentives given to the oil and gas industry. The Trump administration has not done this so far, instead focusing on the expiration of the $7,500 EV tax credit at the end of the third quarter.

Tesla has been going all-in on encouraging customers to purchase their vehicles in Q3 to take advantage of lower prices. The company has also implemented a series of incentives across all its offerings, from the Cybertruck to the Model 3. This, however, is not all, as the company seems to be preparing a longer-term solution to the expiration of the EV tax credit.

Affordable variants

During the Q2 2025 earnings call, Vice President of Vehicle Engineering Lars Moray stated that Tesla really did start the production of more affordable models in June. Quality builds of these vehicles are being ramped this quarter, with the goal of optimizing production over the remaining months of the year. If Tesla is successful, these models will be available for everyone in Q4. 

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“We started production in June, and we’re ramping quality builds and things around the quarter. And given that we started in North America and our goal is to maximize production with a higher rate. So starting Q3, we’re going to keep pushing hard on our current models to avoid complexity… We’ll be ready with new, more affordable models available for everyone in Q4.,” Moravy stated. 

These comments suggest that Tesla should be able to offer vehicles that are competitively priced even after the EV tax credit has been phased out. Interestingly enough, previous comments from Tesla executives have mentioned that these more affordable models would resemble the company’s current lineup. This suggests that the more affordable models may indeed be variations of the Model Y and Model 3, but offered at a lower price.

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Elon Musk

Elon Musk reveals Tesla’s next Robotaxi expansion in more ways than one

Tesla Robotaxi is growing in more ways than one. Tesla wants to expand and hopes to reach half the U.S. population by the end of the year.

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Credit: Tesla

Tesla CEO Elon Musk revealed the company’s plans for its next expansion of the Robotaxi in terms of both the geofence in Austin and the platform overall, as it looks to move to new areas outside of Texas.

Tesla launched the Robotaxi platform last month on June 22, and has since expanded both the pool of users and the area that the driverless Model Y vehicles can travel within.

The first expansion of the geofence caught the attention of nearly everyone and became a huge headline as Tesla picked a very interesting shape for the new geofence, resembling male reproductive parts.

The next expansion will likely absolve this shape. Musk revealed last night that the new geofence will be “well in excess of what competitors are doing,” and it could happen “hopefully in a week or two.”

Musk’s full quote regarding the expansion of the geofence and the timing was:

“As some may have noted, we have already expanded our service area in Austin. It’s bigger and longer, and it’s going to get even bigger and longer. We are expecting to greatly increase the service area to well in excess of what competitors are doing, hopefully in a week or two.”

The expansion will not stop there, either. As Tesla has operated the Robotaxi platform in Austin for the past month, it has been working with regulators in other areas, like California, Arizona, Nevada, and Florida, to get the driverless ride-hailing system activated in more U.S. states.

Tesla confirmed that they are in talks with each of these states regarding the potential expansion of Robotaxi.

Musk added:

“As we get the approvals and prove out safety, we will be launching the autonomous ride-hailing across most of the country. I think we will probably have autonomous ride-hailing in probably half the population of the US by the end of the year.”

We know that Tesla and Musk have been prone to aggressive and sometimes outlandish timelines regarding self-driving technology specifically. Regulatory approvals could happen by the end of the year in several areas, and working on these large metros is the best way to reach half of the U.S. population.

Tesla said its expansion of the geofence in Austin is conservative and controlled due to its obsession with safety, even admitting at one point during the Earnings Call that they are being “paranoid.” Expanding the geofence is necessary, but Tesla realizes any significant mistake by Robotaxi could take it back to square one.

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