Homepage / Technology / Op-Ed: SpaceX is a more attractive Elon Musk company than Tesla or SolarCity
Business Online Solutions What Is a Board Analysis? The Importance of Planning and Programs Development How Board Governance Software Improves Meetings and Governance How to Craft a Successful Board Meeting Reminder Benefits of a Virtual Data Room for Bankruptcy VDR Example for Business Hong Kong ユースカジノの登録方法を初心者にも分かりやすく図解入りで解説 チェリカジ 5 Как быстро пополнить счет в Казино Х в любой валюте Официальный сайт Up X казино и мгновенные игры Paşa Casino Mobil Uygulama 2025 Giriş Üyelik Bonusu Freespin No Deposit Bonus Casino Free Spins In New Zealand What Are The Best Online Casinos For Real Money Pokies And Bonuses In Australia Дэдди Казино официальный сайт Джойказино: информация про официальный сайт Glory Casino giriş için buraya tıkla ve Türkiyede en popüler casino kullanıcısı ol Les Gambling establishments en Ligne en France 2024 200% Reward + 300 Free Rotates LevelUp Internet casino Melbourne En İyi ve Güvenilir Casino Siteleri Canlı Casino Siteleri 2023 Listesi En İyi ve Güvenilir Casino Siteleri Canlı Casino Siteleri 2023 Listesi Le meilleur casino en ligne franзais Extra Casino avec le dйpфt minimal le in addition bas Yeni Casino Siteleri ᐈ Çevrimiçi Kumarhaneler Mart 2024 Les gambling establishments en ligne proposent une grande variйtй de jeux de internet casino gratuits. Türkiye’deki Resmi Web Sitesi Google Play, Türkiye’de kumar oyunlarına izin verecek Her Gün Tatil Olsa ORDU’DA PAZARTESİ GÜNÜ FINDIK FİYATI NASIL? كازينو اون لاين الكازينوهات الممتازة على الإنترنت ألعاب الكازينو المباشرة مينا كازينو العر Google Play, Türkiye’de kumar oyunlarına izin verecek Domain Sorgulama & Domain Fýrsatlarý Canlı Casino Siteleri: 2024 Güvenilir Siteler Seçilmiştir Golden Easter Slot İncelemesi 2024, Demoyu Ücretsiz Oynayın Golden Easter Slot İncelemesi 2024, Demoyu Ücretsiz Oynayın 1xbet Türkiye Giriş Empieza Kayıt 202 Kumar Ve Kumarhaneler Hakkında Pek İlginç 21 Bilgi Kumarhane Doğru Yazımı Nedir? Tdk Ile Kumarhane Kelimesinin Doğru Yazılışı! Mobilbahiste En İyi Kumar Bonusları Ve Kazançlar Mobilbahis Giriş Sayfası On Line Casino Siteleri En Iyi Casino Siteleri 2024 Mostbet: Türkiye’de Internet Casino Mostbet Online Slotlar Ve Canlı-casin Pin Up Casino Oyna Türkiye, Pinup’un Sah Web Sites Ifade Haberleri Son Dakika Ifade Hakkında Güncel Haber Ve Bilgiler “önceliğimiz Transferin Önünü Açmak, Görüştüğümüz Yerler Var” On Line Casino Nuh’un Gemisi Deluxe Resort & Spa, Kıbrıs The Benefits of Document Management Bonus Veren Siteler 3 000 Den Fazla Online Oyunu Ücretsiz Oyna En Tehlikeli Kumar Oyunu Ekşi Sözlük Deneme Bonusu Veren Siteler Deneme Bonusu 2024 Explore the Magic of WildCardCity Güvenilir Bahis Siteleri En İyi Kumar Siteleri Balıkesir Triatlonuna Avrupadan Ödül Tricks of the Aviator gambling establishment game by Spribe Çevrim Içi Kumar Siteleri “bonus” Yalanıyla Kandırıyor En Güvenilir Canlı On Line Casino Siteleri Xbetting-tips Com Uncovering the Abundant Tapestry of Ozwin Gambling establishment Evaluating Board Portal Providers Uncovering the Wealthy Tapestry of Ozwin On line casino Electronic Data Area Providers Evaluation Cobra Internet casino: Raising the Australian On the internet Video gaming Practical experience 4 Things to Search for in Safeguarded Cloud Safe-keeping Fastpay On line casino Australia – Simple and No-Taxation Wagering Web page officielle franзaise de Joka Gambling establishment The Software Development Universe Game Woo Internet casino – Enjoy Slot machine games around australia Ostdeutsche Biersorten What Are Virtual Data Rooms? Vitamin D Receptor Polymorphisms Revue du Casino BlackLabel Faktory, kterй ovlivnujн hodnocenн ceskэch online kasin How to Make the Most of Your Web Development Organization and Advertising Efforts L’essor des casinos en ligne en France Boost Meeting Efficiency With Boardroom Technology Developments WildJoker Casino WildCardCity On line casino – Guaranteed Australian Gambling Portal WildCardCity Casino – The Ideal On the internet Gambling establishment within australia Modern Technologies Produce Sharing Documents Online Faster and More Protect Free Virtual Info Room pertaining to Speedy Due Diligence A Review of Data Area Software For people who do buiness Five Board Bedroom Features Which will help You Acquire a More Productive Boardroom Electronic Systems To your Business Understanding Legal Terms and Laws in Today’s World The Laws and Contracts of Hollywood: A Sunset Blvd. Tale Legal Discussion Between Johnny Cash and Antonin Scalia Legal Insights: What Teens Should Know Legal Issues and Exceptions: What You Need to Know Legal Insights and Expert Analysis Celebrity Dialogue: Legal Matters in the 21st Century Famous Personalities Discuss Legal Issues The Boys in the Boat: Legal Advisors and The Quest for Legal Knowledge Understanding Legal Matters: Q&A on Criminal Law, Joint Ventures, and More Enticing Title The Departed: Understanding Basic Work Requirements and Legal Rights Youth Slang Blog Article Legal Insights: A Journey into the World of Law The Ins and Outs of Legal Matters: Everything You Need to Know Legal Insights and Trends: A Rap Guide Mysterious Legal Matters Unveiled Insights and Information: Understanding Various Laws and Regulations Famous People of the 21st Century

Technology

Op-Ed: SpaceX is a more attractive Elon Musk company than Tesla or SolarCity

Investors love Elon Musk’s vision and his companies.

He’s regularly hailed as our generation’s Thomas Edison.

Tesla is up nearly 80% year-to-date and by more than 1,000% in the past 5 years. It’s more valuable than GM or Ford even though they sell a fraction of the cars. As the only public company in his empire (now that it’s acquired SolarCity), Tesla gets the vast majority of attention.

Yet Elon’s SpaceX could be the most valuable of any Musk company and it should get far more attention than it does.

Interestingly, the logic behind the enormous potential for SpaceX would make any traditional value investor comfortable compared to the typical go-go growth investor following Tesla’s shares.

Because SpaceX is still private, many investors think of it as part of Elon’s wild-eyed dream of shepherding people to Mars or an effort to offer worldwide wifi via low-flying satellites.

Although those are both possible down the road, the key for SpaceX’s attractiveness as a business is that it is building the technology which will allow for re-usable launch rockets associated with each new satellite launch, along with smaller and cheaper satellites.

SpaceX’s “old space” counterparts continue to blow up their rockets for each launch — the single greatest part of the cost associated with each launch. It used to cost up to $300 million to build and launch a satellite.

SpaceX has already recently successfully demonstrated their ability to reuse their Falcon 9 rocket by landing it on a drone barge earlier this year. (The company also successfully launched two rockets this past weekend.) Now the key will be making this technology commercial and dramatically lowering the cost of launching satellites.

Here is the math with SpaceX nailing this market:

Last year, there were 86 civil satellite launches around the world.

In the western world, the civil market for satellite launches are about a $2 billion to $2.5 billion market. The governmental national security market for satellites represents another $3 billion market today.

As of a couple of years ago, the average cost per launch for SpaceX was $61 million. SpaceX — even at that price — was considered a low cost supplier in the space industry.

The shift happening in the space industry now is similar to the shift from mainframe computers to data centers. That means: lower costs, faster speeds, and more commodity parts.

In a few years, with SpaceX’s re-usable rocket technology, it’s possible that the cost per launch could drop through the floor to $5 million to $7 million. At that vastly lowered price, it’s likely that you will see an explosion of the number of satellites launched per year in the next decade compared to the past decade. For redundancy purposes, you will be able to launch multiple satellites instead of just one.

Will the market grow to 10x the current size if the price per launch decreases 10x? We don’t know but this doesn’t seem unrealistic.

As of late 2015 SpaceX has contracts worth $7 billion for launches over multiple years into the future. Could they also capture a significant portion of a $6 billion a year market today (if prices drop 10x and volumes go up 10x)?

Taking $5 billion a year in revenues and applying a Facebook-like 15x price-to-sales multiple to it gives you a potential $75 billion market cap for SpaceX — bigger than Tesla today.

And that’s just for the rocket-launch business that’s confined to the Falcon 9 rocket. SpaceX also is developing the Falcon Heavy for heavy payloads. That could support new markets such as large-scale manufacturing in space instead of on earth polluting our environment. The Falcon Heavy will also be necessary if you’re colonizing the Moon or Mars. What about mining operations in space of space materials? How much in market cap is the Falcon Heavy worth to SpaceX?

There will be competition of course. However, SpaceX has been working intensively in this area for 15 years. When “old space” competitors realized just how far behind they were compared to SpaceX in 2014, they set about establishing joint ventures and initiated their own efforts to catch up. It’s hard to make up 15 years in 2. Jeff Bezos has established upstarts like Blue Origin and there are other venture-backed start-ups but they also have to move quickly.

With such a significant head start, SpaceX might yet become the jewel in the Elon Musk empire.

Commentary by Eric Jackson to follow his monthly Tech & Media Email, go here. And to hear his podcasts on these topics, go here. You can follow Eric on Twitter @ericjackson . For more insight from CNBC contributors, follow @CNBCopinion on Twitter.

Source: Tech CNBC
Op-Ed: SpaceX is a more attractive Elon Musk company than Tesla or SolarCity

Comments are closed.