The final test of Space X's giant Starship rocket failed, minutes after launch.
Elon Musk's company officials said the upper stage was lost after problems arose after takeoff from Texas on Thursday.
But the super-heavy rocket managed to return to the launch pad as planned, prompting a standing ovation from ground control teams.
The mission came hours after the maiden flight of the Blue Origin New Glenn rocket system, backed by Amazon CEO Jeff Bezos.
Both tech billionaires want to control the spacecraft market.
“The spacecraft experienced a rapid, unscheduled disassembly during its ascent. Teams will continue to review data from today's flight testing to better understand the root cause,” SpaceX posted on X.
“With a test like this, success comes from what we learn, and today’s flight will help us improve the reliability of the spacecraft.”
Unverified footage circulated on social media shows what appears to be the missile crashing in flames.
The footage showed orange balls of light flying across the sky of the Haitian capital, Port-au-Prince, leaving a trail of smoke behind them.
“Success is uncertain, but entertainment is guaranteed!” Mr Musk posted on X a video showing a fiery trail stretching across the sky.
He also said that “improved versions” of the ship and booster are “already awaiting launch.”
“Initial indications are that we had an oxygen/fuel leak in the cavity above the firewall of the ship’s engine, and it was large enough to increase the pressure beyond the capacity of the vent,” Musk said shortly afterward, adding that “nothing so far indicates propulsion.” “. The next launch is next month.”
The launch footage has garnered 7.2 million views, according to SpaceX's live stream.
The Starship system lifted off from Boca Chica, Texas, at 17:38 EDT (22:38 GMT) on the company's seventh test mission.
The spacecraft's upper stage separated from its super-heavy booster about four minutes into the flight as planned.
But then SpaceX communications director Dan Huett reported in a live stream that mission teams had lost contact with the ship.
The super-heavy rocket was able to return to the launch pad approximately seven minutes after liftoff as planned, drawing a standing ovation from ground control teams.
The US Federal Aviation Administration (FAA) said it was aware of an “anomalous incident” during the SpaceX mission.
“The Federal Aviation Administration briefly slowed the aircraft and diverted around the area where spacecraft debris was falling. Normal operations have resumed,” it said in a statement.
This comes one day after a SpaceX rocket was launched from Florida carrying two lunar landers and a small rover to the moon.
An unmanned Falcon 9 rocket lifted off from Kennedy Space Center on Wednesday.
Bezos Blue Origin Company Successfully launched a rocket into orbit For the first time.
It was a big step forward for Bezos and his company, which had spent years getting to the point of sending a rocket into orbit.
