How Does SpaceX Make Money | SpaceX Business Model

Basically, SpaceX makes money by building innovative space exploration and communications technologies. SpaceX offers alternative options to government and military contractor programs for commercial launches of satellites. This is a huge income-generating source for SpaceX. With innovative space operations, SpaceX is making about $2–3 billion per year in revenue since 2017.

Key Takeaways

• SpaceX is an American aerospace manufacturer, space transportation services and Communications Company established in 2002 by Elon Musk
• SpaceX designs manufacture and launch advanced rockets and spacecraft with a mission to reduce space transportation costs
• SpaceX is valued at $74 billion and it provides space transportation services for common people
• SpaceX is the first aerospace company that funded the liquid-propellant rocket- Falcon 1, to reach orbit and successfully recover back
• SpaceX makes money by dispatching rocket missions to space and orchestrating satellite programs for its clients

What Is SpaceX?

SpaceX is an incredibly reliable brand that is officially known as Space Exploration Technology Corporation. SpaceX is an American aerospace producer and they also provide space transportation services for common people. Elon Musk established SpaceX with the aim of lowering the cost of overall space transportation and enabling humanity on Mars. SpaceX is the first aerospace company that funded the liquid-propellant rocket- Falcon 1, to reach orbit and successfully recover back. Currently, SpaceX is the leading private space transport company and they have become a pioneer in this industry. Accessibility, performance, and brand status are the three strong characteristics of SpaceX that are the main fraction behind the success of SpaceX.

How Does SpaceX Work?                

Since its establishment, SpaceX has been collaborating with NASA with several projects including the transport of people and goods to the International Space Station and more. Recently, they made a $2.9 billion contract with NASA for the construction of a lunar lander to take the man back to the moon. So it is quite clear that the main base of SpaceX’s business model is delivering space transport to governmental and private organizations. SpaceX also specialized in rocket design and the development and launch of a satellite network. The SpaceX team created its first rocket, the Falcon 1, and completed its first successful flight in 2008. They have also built Falcon 9, Falcon Heavy, the revolutionary Starship, and the Dragon that can carry up to 7 passengers to and from Earth orbit. In fact, Dragon is the first private commercial vehicle to take US astronauts to the International Space Station. SpaceX builds the Falcon Heavy spacecraft costing around $90 and the Falcon 9 with a cost of $62 million. Though, SpaceX is saying they might be able to reduce the cost of commercial customer launches down to $30 million thanks to the reusability of some of the rockets.

How SpaceX Makes Money?

After reading the above information, it might be clear to you that SpaceX makes money by dispatching rocket missions to space and orchestrating satellite programs for its clients. In the year 2020, SpaceX was able to successfully transport two NASA astronauts to the International Space Station using their reusable Falcon 9 rocket. It was the first commercial manned launce by SpaceX. According to Forbes, SpaceX has made 15 commercial space contracts for an estimated $80 million per launch. These contracts helped SpaceX make $1.2 billion in revenue in 2020. Moreover, SpaceX is planning to launch its first all-civilian space flight in the last quarter of 2021 with four passengers but the price of tickets is undisclosed. Though, you can assume that the price might be in the millions. SpaceX is also selling beta access to its Starlink project and you have to pay $99 per month with the one-time purchase of a dish and router for $499. It is expected that SpaceX would offer internet service to airlines in the near future.

Business Model Of SpaceX

SpaceX is the first-ever private company that gained the license from NASA for launching payloads and humans to space. SpaceX has a distinct business model along with bold successful strategies. We already know that the main target of SpaceX is to colonize Mars and with that target in mind, SpaceX is growing tremendously and getting ready to carry people to Mars. Since its establishment, SpaceX has performed dozens of space launches and it is their main source of income. Other sources of income for SpaceX are aerospace supplying, manufacturing, subsidiary, and distributing.

FAQs About How Does SpaceX Make Money

What Are The Top Launch Facilities Operated By SpaceX?

SpaceX has made some exceptional success in the exploration and production of space transportation. SpaceX is operating 4 top launch facilities, they are – 

1. Cape Canaveral Space Launch Complex 40 (SLC-40)

2. Kennedy Space Center Launch Complex 39A (LC-39A)

3. Vandenberg Space Force Base Space Launch Complex 4E (SLC-4E)

4. Brownsville South Texas Launch Site

References:

1. https://www.fool.com/investing/2016/06/25/how-does-spacex-make-money.aspx
2. https://finty.com/us/business-models/spacex/

Last Updated on October 22, 2022 by Magalie D.