Smoke from the failed SpaceX test was visible for miles, The Atlantic reported. Elon Musk’s company said the tests resulted in an “anomaly” on the test stand. But grainy footage was later published online showing the capsule explode.
The video shows the spacecraft engulfed in flames while off camera people are heard gasping.
SpaceX said in a statement at the time: “The initial tests completed successfully, but the final test resulted in an anomaly on the test stand.”
The company have refused to verify the authenticity of the video.
However, an internal NASA email warned employees can be fired if they share the video, the Orland Sentinel reported.
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The paper reported the footage is real.
Mr Musk has previously said SpaceX will be flying by this summer unless something goes wrong.
NASA hired SpaceX to develop transportation systems from American astronauts to be taken into space.
The billion-dollar contracts given to SpaceX and Boeing are hoped to replace America’s reliance on Russia to transport its astronauts.
NASA have reportedly launched an investigation into the explosion, according to the Atlantic.
The company said in a statement: “SpaceX and NASA are just beginning the mishap investigation process.
“We don’t yet know what impact this will have to our target schedules. We have full confidence in SpaceX.
“Additional information will be released as it is available.”