Economics by Elon Musk

[Thəorətic Muslim]

@Nilgiri @Hamartia Antidote @Quwa @El Sidd

 

[Thəorətic Muslim]

@cloud4000

 

[Nilgiri]

@Nilgiri @Hamartia Antidote @Quwa @El Sidd

He seized a very good opportunity inherited from cold war.

What I mean by that is the trillions of dollars the US invested in frontier military/space eng/application spawned and enforced a huge component OEM + integrator + top end monopoly (NASA + military) in an otherwise free market. This means there was a huge buffer waiting for someone to harness it once the restrictions were removed/relaxed (after the cold war ended). Elon Musk is one, but I believe there is room for even more esp after he has proven the model this well. It is good that he is leaving SpaceX as a frontier charter for now too with specific goal in mind (Mars).....because too often I have seen people bail out and cash out before the margins are fully realised before removing of insulation (be it through ROI capacity/sustainability or otherwise) and subsequent enterprise saturation. The delicate balance of that can only be realised in free markets though, this is a major reason why the US is still far ahead by anyone else and the USSR quite quickly became uncompetitive as industrial/service growth needed more and more nuanced interplay of vertical integration versus supply/research hedging (USSR didn't even let the interplay exist in any fashion but tried to centrally micromanage it).

 

[cloud4000]

We already seeing the commoditization of space travel with both China and India launching satellites and manned-flights. Elon Musk is taking it to the next step, to reduce the price so low that to make space travel possible for people. My dream before I die to travel in space. I hope it happens.

 

[Thəorətic Muslim]

It is good that he is leaving SpaceX as a frontier charter for now too with specific goal in mind (Mars).....because too often I have seen people bail out and cash out before the margins are fully realised before removing of insulation (be it through ROI capacity/sustainability or otherwise) and subsequent enterprise saturation. The delicate balance of that can only be realised in free markets though, this is a major reason why the US is still far ahead by anyone else and the USSR quite quickly became uncompetitive as industrial/service growth needed more and more nuanced interplay of vertical integration versus supply/research hedging (USSR didn't even let the interplay exist in any fashion but tried to centrally micromanage it).

SpaceX is Starfleet.

Unless i'm mistaken SpaceX is probably the most completely vertically integrated company. There will be a limit to how much of the components can be sourced inhouse. SpaceX will never, in the short term, be able to meet the quality standards of established companies. But the vast majority, most expensive, of components are being inhoused. And a willingness to go against SOP.

ULA, Boeing & Lockheed Martin, the largest engineering/defense corporations in the US rather than engaging in rocket engine research outsourced the component to Russia. Pi$$ing off quite a many politician, military, and civilian members. No one thought to reuse engines, atleast get the idea to the board, when the Pentagon was more than willing to shell out $500 million per launch of a satellite.