Space X is a private space exploration company that manufacture rockets and sends them into space to carry out different missions.
The company is currently owned by CEO Elon Musk. Space X was founded in 2002 as an ambitious dream of musk to make the space in reach of humanity. Since then space X has done many noteworthy missions that were considered as sci-fi at the time.
It has changed the history of mankind. It made its name in the space industry due to is revolutionary reusable rockets.
Space X is one of the few companies that work in the toughest markets. Since its founding, it disrupted the industry which was never done before. Because the Space industry was dominated by the national agencies that have large budgets and a huge team of people
and many goals. But space X became the first privately held company to ever launch a rocket in the Low Earth Orbit and making reusable rockets
But what makes Space X special is not because of its competitiveness but because the space market is not a consumer market. There are not many demands for launching a rocket than there is in selling iphones. The consumers in the industry are the national agency, big telecommunication companies, and military.
So How Does Space X Makes Money In Such Market?
Space X has a customer base of three types of customers
1. Commercial telecommunications companies
Space X launches satellites in the low earth orbit that revolves around the earth. Even though it is very difficult to build a rocket, launching one into an
orbit safely is another challenge. Space X is able to meet the demands of its customers with the help of its state of the art rockets
Falcon 9 and Falcon Heavy.
1. Falcon 9
Falcon 9 main rocket that space X uses for its smaller mission. it has 9 Merlin engines that give a thrust of more than 1.5 million pounds.
The rocket has two stages first stage and second stage. the first stage has 9 Merlin engines and the second stage has 1 Merlin engine.
the first stage will return to the base after separation from the second stage. The base rate of a Falcon 9 rocket is $62 million to launch a payload into Low Earth Orbit.
2. Falcon Heavy
Falcon Heavy is used for heavier missions. It has two Falcon 9 boosters that make 27 Merlin engines. It gives a thrust of more than 5.5 million pounds. the rocket has three falcon first stages and a second stage.
The two boosters are reusable ad return to the base.
the base rate of a Falcon Heavy is $90 million to launch.
At the time of writing this article Space, X has done 46 to 50 missions with these rockets. The company is valued at $25 billion just behind Uber and Airbnb
According to Musk, the first stage costs around $35million and constituent about 70% of the total cost of rocket. So it means that the second stage will cost $15 million.
So the Falcon 9 rocket may cost around $50 million. but the cost of the rocket is $62 million. And the company doesn`t have to make rocket again and again it
can use its premade rocket many time so the cost per launch will decrease after first launch.
So the profit earned is more than $42 million without manufacturing another rocket. And also the Falcon Heavy will profit $75 million.
There may be some other factor that results in the increased cost but it is far less than what other companies offer for similar services.
In fact, the ULA United Launch Alliance charges $400 million for the same service.
Well this is just a speculation as the company has not yet released any financial statement. But it is pretty sure that the company is well funded and one of the most valued tech companies in the world. The company will continue to grow and make its goal come true.