The FAA may grant SpaceX a license for the next Starship launch in time for the Sunday attempt.

• CNBC has learned that the Federal Aviation Administration may grant SpaceX its next Starship license in time for a Sunday launch attempt.
• The FAA has accelerated its review process for the license, allowing for earlier approval, contrary to previous expectations that it would take until "late November," a source close to the matter told CNBC.
• Elon Musk and SpaceX have been openly critical of the FAA, claiming that the regulatory environment poses challenges for the company.

CNBC has learned that the Federal Aviation Administration may grant SpaceX its next Starship license in time for a Sunday launch attempt.

Elon Musk and SpaceX have been vocal in their criticism of the FAA regarding the slow review process for Starship's fifth test flight license. The FAA recently stated that it does not anticipate issuing the license until "late November."

SpaceX announced that the fifth Starship spaceflight could launch as soon as October 13, pending regulatory approval. The company did not specify if it expected to receive its license by Sunday.

According to a source familiar with the matter, the FAA's accelerated review process has made SpaceX's ambitious goal achievable.

The regulator and partner agencies involved in the process conducted assessments more quickly than anticipated, according to a person who spoke to CNBC. The U.S. Fish and Wildlife Service is in the final stages of completing a review for the FAA. The person, who requested anonymity to discuss the ongoing federal review, noted that any snags this week could take a Sunday attempt off the table and push approval to later this month.

The FAA updated its estimate on CNBC on Tuesday.

SpaceX submitted new information for its proposed Starship/ Super Heavy Flight 5 mission in mid-August. The FAA is currently reviewing this information and will make a licensing determination once SpaceX fulfills all licensing requirements.

The FAA was contacted by the Fish and Wildlife Service in response to a request for comment from CNBC.

SpaceX accused the FAA of delaying Starship's fifth launch due to excessive environmental analysis, claiming that the extended review was unjustified and caused unnecessary frustration in the current regulatory environment for companies seeking launch licenses.

Despite criticism of reports that SpaceX violated environmental regulations by using the Starship launchpad's water deluge system in Texas without authorization, SpaceX settled fines imposed by the Texas Commission on Environmental Quality and the federal Environmental Protection Agency for unauthorized water discharge.

The FAA may approve a license this month, with a possible announcement on Sunday.

An ambitious fifth launch

SpaceX plans to advance the development of its massive Starship rocket through its fifth flight, building on the success of the June fourth Starship test flight that traveled halfway around the world and intentionally splashed down in the Indian Ocean.

SpaceX aims to catch the 232-foot-tall booster of Starship as part of its plan to make the rocket fully reusable.

The Super Heavy booster, after separating from the upper Starship section of the rocket, is expected to fly back to the launch site and land between two "chopsticks" on the tower. SpaceX highlighted that the catch attempt requires "thousands" of criteria to be met, or else the booster will deviate from the return trajectory and splash down in the Gulf of Mexico.

SpaceX stated that no compromises will be made in ensuring public and team safety during the flight, and the return will only be attempted if conditions are suitable.

The fifth Starship launch from the company's facility near Brownsville, Texas, will occur on Sunday at 8 a.m. ET when the window opens.

The Super Heavy booster, when fully stacked with Starship, reaches a height of 397 feet and has a diameter of about 30 feet.

NASA has awarded SpaceX a multibillion-dollar contract to use the Starship system as a crewed lunar lander for the Artemis moon program, with the aim of making it a reusable method for flying cargo and people beyond Earth.