Table of Сontents
- What Is SpaceX?
- 4 Ways SpaceX Makes Money
- SpaceX Valuation
- Bottom Line
Private US-based aerospace business SpaceX engages in manufacturing, shipping, and communications. Find out what they do and their four sources of income.
What Is SpaceX?
Space Exploration Technologies Corp., a US-based aerospace firm engaged in space transportation, spacecraft and rocket manufacturing, and space communication services, goes by the brand name SpaceX. Elon Musk established SpaceX in 2002 with its main office in Hawthorne, California, to enhance and bring down the price of space travel. Musk has stated that he ultimately wants to send people to Mars.
The business produces communications satellites, launch vehicles, rocket engines, and spacecraft. It has made two different types of rockets so far:
- Falcon 9:the first orbital-class reusable rocket in history
- Falcon Heavy: according to SpaceX, it is “by a factor of two the most powerful operational rocket in the world.”
- The Dragon spaceship, which has a capacity of seven people and can travel to and from Earth’s orbit and beyond, is also produced by them. The first, privately owned spaceship to carry people to the International Space Station is the Dragon.
In addition, SpaceX is building and launching the StarLink constellation of communication satellites, which will deliver worldwide internet connectivity.
The company has made a number of firsts in space transportation, including the first liquid-propellant rocket to orbit that was privately funded, the first private company to launch a rocket into orbit and recover it, and the first vertical takeoff and vertical propulsive landing for an orbital rocket. More than 100 launches have been successful so far.
4 Ways SpaceX Makes Money
There are several methods for SpaceX to make money, however they may be categorised into four main business lines:
1. Manufacturing Rockets and Spacecraft
The industrial facility produces satellites, ships, and rockets both for commercial and personal usage. NASA is a significant client for SpaceX, with whom it has billion-dollar contracts for the design and construction of spacecraft that date back to 2006 and continue long into the future.
2. Transporting Humans and Cargo Into Space
The transportation industry manages the delivery and retrieval of astronauts, as well as freight and supply services for NASA missions to the International Space Station. For the Lunar Gateway Space Station, a contract to offer a comparable service was completed in 2020.
Additionally, the business provides transportation services for industrial uses such as satellite installations. Additionally, SpaceX provides space tourism services for people, giving them the chance to spend up to a million dollars on a private space experience.
3. Orbital Communications Satellites
SpaceX has created and launched its own satellite network dubbed StarLink, which is designed to earn income as a worldwide internet services provider. SpaceX can also deploy satellites for government or commercial organizations.
4. National Defense Missions
Additionally, the Department of Defense and the United States Air Force Space and Missile Systems Center have contracts with SpaceX for defense-related projects.
Since SpaceX is a privately held business, its valuation is based on its most recent stock issuance to accredited investors. It was disclosed in October 2021 that SpaceX had made shares available to both new and current shareholders at a price of $560 per share, giving the business a worth of more than $100 billion and making it the most valuable private corporation in the world. The new stock sale raised the valuation over the existing valuation set in February 2021 by more than 30% while not providing the firm with fresh investment cash.
While undoubtedly a noteworthy accomplishment, because the firm is private and does not disclose its financials, it is challenging to have a clear understanding of the measures of that valuation in relation to those figures.
SpaceX is a distinctive and innovative enterprise that is breaking entirely new ground in both business and science. It has proven to be an invaluable resource for NASA, the Defense Department, private companies, and those hoping for a once-in-a-lifetime chance to fly to space. Individual investors are now unable to invest in SpaceX because it is a private firm, but they may possibly invest a million dollars in the adventure of a lifetime.