TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker and becoming a Supporting Member. For more info: Support TMC

How the company Space X is making money?

Discussion in 'SpaceX' started by nikity, Oct 9, 2019.

  1. nikity

    nikity Member

    Joined:
    Sep 30, 2019
    Messages:
    10
    Location:
    London
    I was wondering how this company is making money? It makes any money at all? Or simply Elon Musk spend his money on the company ? Or is still at early stage to make money?
     
  2. ecarfan

    ecarfan Well-Known Member

    Joined:
    Sep 21, 2013
    Messages:
    19,106
    Location:
    San Mateo, CA
    SpaceX is a privately held company and therefore has less financial pressure on it then say, Tesla. ;)

    Elon founded the company with his own money but since then there have been many investors; individuals, venture capital firms investment funds, etc.

    SpaceX does of course generate a lot of revenue from launch contracts. See SpaceX - Wikipedia Quote: “As of March 2018, SpaceX had over 100 launches on its manifest representing about $12 billion in contract revenue.”

    Of course that’s not enough to fund FH/Starship development and production of large numbers of spacecraft or enable the company to reach its goal of establishing a self-sustaining colony on Mars. That will take a lot more money.

    Read that Wikipedia page for more info.
     
  3. Cosmacelf

    Cosmacelf Well-Known Member

    Joined:
    Mar 6, 2013
    Messages:
    7,690
    Location:
    San Diego
    Over 70 launches, at, maybe $10m net profit per launch. That’s $700m. The NASA contracts have some big margins. They’ve had well over $2B in private investment.

    So, yes, it does make money, but then it undoubtedly invests more than it makes for future projects, just like any fast growing startup. Musk has no money, he invested it all in SpaceX and Tesla already about ten years ago. Oh, he’s “worth” billions, but that’s the value of his ownership in Tesla and SpaceX, and he hasn’t sold any shares of those companies so he has no cash. Most of his extravagant expenses (like a private jet) are corporate expenses, so paid directly by Tesla or SpaceX, and the rest of his personal expenses are easily paid via modest (for a CEO) salaries.
     
    • Informative x 2
  4. bxr140

    bxr140 Active Member

    Joined:
    Nov 18, 2014
    Messages:
    2,286
    Location:
    Bay Area
    There's a difference between generating revenue and turning a profit. SpaceX doesn't really do the latter, they basically survive (and of course, grow) on private funding, development contacts from the government, revenue from their launch services, and no doubt some favorable tax deductions form claiming a lot of IRAD. There is no possible way SpaceX would survive as a public company, at least right now.

    I don't know exactly how SpaceX contracts are structured with the government, but typically government contracts in the space industry are fixed margin, somewhere around 10-12%. The exercise is in justifying the cost, and that's where clever accounting can help, but that's usually with follow-on activity where you basically use already-justified numbers as a basis. An FFP can of course bring higher margins, but they’re not going to be mega.
     
  5. Dr. J

    Dr. J Active Member

    Joined:
    Aug 23, 2017
    Messages:
    1,471
    Location:
    Fort Worth, Texas
    Gee I feel bad for the guy. I want to buy him a cup of coffee. ;)
     
    • Funny x 1
  6. TaxiDriver

    TaxiDriver New Member

    Joined:
    Oct 28, 2019
    Messages:
    3
    Location:
    USA
    They monetize youtube videos - how they launch cars with pizza into space xD
     

Share This Page

  • About Us

    Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.
  • Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.


    SUPPORT TMC