What It Took For SpaceX To Become a Serious Space Company

Posted by Soulskill on Wednesday October 22, 2014 @03:47AM from the gumption-and-elbow-grease-(and-piles-of-cash) dept.

An anonymous reader writes: The Atlantic has a nice profile of SpaceX's rise to prominence — how a private startup managed to successfully compete with industry giants like Boeing in just a decade of existence. "Regardless of its inspirations, the company was forced to adopt a prosaic initial goal: Make a rocket at least 10 times cheaper than is possible today. Until it can do that, neither flowers nor people can go to Mars with any economy. With rocket technology, Musk has said, "you're really left with one key parameter against which technology improvements must be judged, and that's cost." SpaceX currently charges $61.2 million per launch. Its cost-per-kilogram of cargo to low-earth orbit, $4,653, is far less than the $14,000 to $39,000 offered by its chief American competitor, the United Launch Alliance. Other providers often charge $250 to $400 million per launch; NASA pays Russia $70 million per astronaut to hitch a ride on its three-person Soyuz spacecraft. SpaceX's costs are still nowhere near low enough to change the economics of space as Musk and his investors envision, but they have a plan to do so (of which more later)."

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To compete in price by Thanshin · 2014-10-22 04:10 · Score: 4, Interesting

To compete in price against anyone you only need money. With enough money, you can set a price of $0.
The main question is "will they be able to recover the cost of that competence once they get the contracts?" and it's way too soon to know the answer to that.
It's like judging the acquisition of online "businesses". Nobody can prove the price was or wasn't right until the buyer makes that back as profit or doesn't.