SpaceX has responded to a critical report from CNBC alleging that it has repeatedly polluted waters in Texas this year. As per the private space company, the publication’s allegations about its launch operations in South Texas were factually inaccurate.
In its report, CNBC alleged that SpaceX violated environmental regulations by “repeatedly releasing pollutants into or near bodies of water in Texas.” The publication cited a notice of violation from the Texas Commission on Environmental Quality (TCEQ) about SpaceX’s water deluge system at Starbase, Texas, as part of its sources for its article.
The TCEQ reportedly received a complaint alleging that SpaceX “was discharging deluge water without TCEQ authorization” on August 2023. A total of 14 complaints alleging environmental impacts from Starbase’s deluge system have reportedly been received by the Harlingen region, the publication noted.
SpaceX repeatedly polluted waters in Texas this year, regulators found https://t.co/0KfZIxElxV— CNBC (@CNBC) August 12, 2024
In its response, which was posted through its official account on X, SpaceX noted that it worked with the TCEQ when Starbase’s water deluge system was built. SpaceX also clarified that it has only used potable water in the operations of Starship’s water deluge system.
Following is SpaceX’s full response to CNBC’s allegations.
CNBC’s story on Starship’s launch operations in South Texas is factually inaccurate.
Starship’s water-cooled flame deflector system is critical equipment for SpaceX’s launch operations. It ensures flight safety and protects the launch site and surrounding area.
Also known as the deluge system, it applies clean, potable (drinking) water to the engine exhaust during static fire tests and launches to absorb the heat and vibration from the rocket engines firing. Similar equipment has long been used at launch sites across the United States – such as Kennedy Space Center and Cape Canaveral Space Force Stations in Florida, and Vandenberg Space Force Base in California – and across the globe.
CNBC’s story on Starship’s launch operations in South Texas is factually inaccurate.
Starship’s water-cooled flame deflector system is critical equipment for SpaceX’s launch operations. It ensures flight safety and protects the launch site and surrounding area.
Also known as…— SpaceX (@SpaceX) August 12, 2024
SpaceX worked with the Texas Commission of Environmental Quality (TCEQ) throughout the build and test of the water deluge system at Starbase to identify a permit approach. TCEQ personnel were onsite at Starbase to observe the initial tests of the system in July 2023, and TCEQ’s website shows that SpaceX is covered by the Texas Multi-Sector General Permit.
When the EPA issued their Administrative Order in March 2024, it was done without an understanding of basic facts of the deluge system’s operation or acknowledgement that we were operating under the Texas Multi-Sector General Permit.
After we explained our operation to the EPA, they revised their position and allowed us to continue operating, but required us to obtain an Individual Permit from TCEQ, which will also allow us to expand deluge operations to the second pad. We’ve been diligently working on the permit with TCEQ, which was submitted on July 1st, 2024. TCEQ is expected to issue the draft Individual Permit and Agreed Compliance Order this week.
Throughout our ongoing coordination with both TCEQ and the EPA, we have explicitly asked if operation of the deluge system needed to stop and we were informed that operations could continue.
TCEQ and the EPA have allowed continued operations because the deluge system has always complied with common conditions set by an Individual Permit, and causes no harm to the environment.
Specifically:
– We only use potable (drinking) water in the system’s operation. At no time during the operation of the deluge system is the potable water used in an industrial process, nor is the water exposed to industrial processes before or during operation of the system.
– The launch pad area is power-washed prior to activating the deluge system, with the power-washed water collected and hauled off.
– The vast majority of the water used in each operation is vaporized by the rocket’s engines.
– We send samples of the soil, air, and water around the pad to an independent, accredited laboratory after every use of the deluge system, which have consistently shown negligible traces of any contaminants. Importantly, while CNBC’s story claims there are “very large exceedances of the mercury” as part of the wastewater discharged at the site, all samples to-date have in fact shown either no detectable levels of mercury whatsoever or found in very few cases levels significantly below the limit the EPA maintains for drinking water.
– Retention ponds capture excess water and are specially lined to prevent any mixing with local groundwater. Any water captured in these ponds, including water from rainfall events, is pumped out and hauled off.
– Finally, some water does leave the area of the pad, mostly from water released prior to ignition and after engine shutdown or launch. To give you an idea of how much: a single use of the deluge system results in potable water equivalent to a rainfall of 0.004 inches across the area outside the pad which currently averages around 27 inches of rain per year.
With Starship, we’re revolutionizing humanity’s ability to access space with a fully reusable rocket that plays an integral role in multiple national priorities, including returning humans to the surface of the Moon. SpaceX and its thousands of employees work tirelessly to ensure the United States remains the world’s leader in space, and we remain committed to working with our local and federal partners to be good stewards of the environment.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
Elon Musk said he is planning to give “every one of his SpaceX shares to every kid in America” in 2027, stating that “this will be the first of many.”
SpaceX went public earlier this year, and its stock price has been relatively stable since leveling off shortly after its IPO. Based on its current price, it’s a gift of just over $10 billion to children across the United States.
It appears to be closely related to President Donald Trump’s bank accounts for children, which were set up earlier this year as Trump Accounts.
Just hours earlier, Anthropic had announced the establishment of its Anthropic Public Benefit Fund, “a new wholly-owned entity dedicated entirely to public benefit.” Musk responded by stating he recommended “giving the shares directly to the public,” and that he would be doing it that way.
Just a little bit later, Musk said children across the U.S. would be getting a share from him:
Next year, I will give one of my SpaceX shares to every kid in America.
This will be the first of many.
— Elon Musk (@elonmusk) October 19, 2026
There are roughly 70 million children, meaning someone under the age of 18, in the United States, according to the Federal Interagency Forum on Child and Family Statistics. Musk’s ownership of SpaceX stock shows he has around 849 million Class A shares of SpaceX stock, according to filings with the SEC.
Tesla CEO Elon Musk took to his social media platform X on Sunday to remind everyone that the Roadster’s true meaning is not about company growth or adding dollars to shareholders’ pockets. Sometimes, you just do things because you can.
Following the Roadster’s epic unveiling event last Thursday, skeptics and critics of the company or the project itself came out to say that the vehicle is a pointless project because it is not geared toward growing the company, delivering supreme margins for profitability, nor does it contribute to the big picture of Artificial/Super Intelligence.
But that’s just the thing: Roadster is not meant to be some shareholder dream; it’s meant to be a vehicle that people buy just because it is something awesome, unique, and the first of its kind.
Tesla Roadster: Three configs, one can fly, 0-60 in 0.8 seconds
Musk had to remind those who are skeptical about the Roadster’s importance to the company mission that while it is not a major contributor to Tesla’s long-term goals, it is something that is being built just because it can be:
“Optimus and Cybercab will be the vast majority of Tesla’s value. The only things that will scale to incredible size (K2 and beyond) economically are super intelligence, robots, solar power, and mass to space. And, of course, if you have the first two, the rest will follow. But Roadster is super cool, so we’re doing it anyway.”
Musk has said on many occasions that Optimus would be the project that would make up the vast majority of Tesla’s value in the coming years.
Robotics will be a major focus of Tesla over the coming years, especially as Musk believes Optimus will enable work to be optional for humans and will enable what he calls “High Universal Income.”
Optimus and Cybercab will be the vast majority of Tesla’s value.
The only things that will scale to incredible size (K2 and beyond) economically are super intelligence, robots, solar power and mass to space.
And, of course, if you have the first two, the rest will follow.
But Roadster is super cool, so we’re doing it anyway.
— Elon Musk (@elonmusk) October 18, 2026
Cybercab will be a passive income opportunity for owners, Musk and Tesla have said for a very long time, as a fleet of self-driving vehicles will operate within a ride-hailing Robotaxi service that won’t require a human driver to be present.
Tesla investors are more than enthusiastic about the company’s future projects, at least from a general consensus perspective. However, it is important to note that the Roadster is a fun and cool project that pushes the boundaries of what people thought was possible for an automobile.
What we saw last week was the first true example of a flying car, and despite the backlash about how it might not contribute to Tesla’s grand ambitions, it’s okay to have fun sometimes, too.
Investor's Corner
SpaceX’s biggest earnings test yet lands Tuesday, and Tesla shareholders should be watching
SpaceX reports earnings Tuesday as Wall Street watches AI spending, Starlink growth and Tesla merger
SpaceX reports third quarter results after the market closes Tuesday, with a webcast at 4:30 p.m. ET streamed on X, and Tesla follows a day later. Bloomberg consensus, cited by Pepperstone, calls for revenue of $12.89 billion, adjusted EBITDA of $6.62 billion and adjusted EPS near $0.15. That would be about 65% growth from the second quarter and SpaceX’s first profitable quarter since its IPO. Analysts expect roughly $6.4 billion from AI and $4.9 billion from Starlink, which is projected to reach 14.3 million consumer subscribers. Capital spending is forecast at $19.6 billion, leaving free cash flow near negative $11.6 billion.
The numbers matter because SpaceX has spent months trying to win over a skeptical market. It priced its record IPO at $135, spiked to $225.64, then sank near $105 in early August. Friday’s close of $146.03 sits about 28% below the June high. The Q2 report beat on revenue at $7.8 billion and put Starlink at 12 million subscribers, but $18.4 billion of capex hurt the stock. Since then SpaceX reached orbit on Starship Flight 14 with 26 Starlink V3 satellites, agreed to buy 800 MHz spectrum for about $8 billion as part of its Starlink Mobile push, and signed a fourth compute hosting deal in four months worth roughly $13 billion a year from December. Management is targeting more than 2 gigawatts of compute by year end and a $100 billion annualized revenue run rate. Evercore ISI, which raised its target to $275, said the quarter may be judged more on those targets than the reported figures
All of this sits under the Tesla merger question. Barclays analyst Dan Levy expects an all stock deal in which SpaceX buys Tesla at a premium, using reference values of $2.1 trillion and $1.5 trillion, and said an announcement would need to come by late October or early November to be voted on at Tesla’s December 6 annual meeting. Barclays estimates Musk would hold about 37% of the combined company and 56% of the votes. Musk said in July that combining companies cannot be discussed on an earnings call, but an investor question asking when SpaceX will merge with Tesla is sitting on SpaceX’s Q&A platform, and Teslarati has tracked how the Roadster demo revived the talk.
If a deal happens, Tuesday’s result would effectively set the price Tesla holders would receive. Their shares would convert into SpaceX stock, along with exposure to a company with a heavy investment on AI, while Tesla itself expects 2026 capex above $25 billion. A strong quarter and calmer spending would make that exchange easier to sell. Another round of heavy capex and a falling stock would make it harder.
Elon Musk will give ‘every kid in America’ a SpaceX share in 2027
Tesla CEO Elon Musk reminds everyone about Roadster’s true meaning
SpaceX’s biggest earnings test yet lands Tuesday, and Tesla shareholders should be watching
SpaceX reveals how its 1 Million AI satellite network will work and prevent space collisions
Tesla Roadster: Three configs, one can fly, 0-60 in 0.8 seconds
