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How the U.S. space industry became dependent on SpaceX
BoeingBoeing(US:BA) CNBC·2025-08-24 13:00

Core Insights - SpaceX is currently valued at approximately $400 billion and plays a crucial role in U.S. space access, having evolved significantly since its founding in 2002 by Elon Musk [1][6] Company Development - SpaceX was established using funds from Elon Musk's PayPal sale, with the initial goal of developing the Falcon 1 rocket to compete against existing launch providers [1] - The company faced challenges, including three failed launches of the Falcon 1 before securing government contracts that provided essential funding [3][4] Government Contracts - In 2008, NASA awarded SpaceX a $1.6 billion contract for Commercial Resupply Services, which was pivotal for the company's survival and growth [5] - This contract involved using the Falcon 9 rocket and Dragon capsule for 12 missions to the International Space Station [5] - In 2014, SpaceX received an additional $2.6 billion contract from NASA to develop vehicles for transporting astronauts [5] Market Dominance - SpaceX has become a dominant player in the space market, conducting a record 134 orbital launches in 2024, which accounted for 83% of all spacecraft launched that year [6] - The company’s Falcon 9 rocket and Dragon capsule are the primary vehicles for NASA's missions to the International Space Station [7] Technological Contributions - SpaceX's Starlink satellites provide essential internet access to remote areas and support U.S. allies during conflicts [7] - The company is also developing the Starship rocket for lunar missions and a network of spy satellites under a $1.8 billion contract with the U.S. government [7] Industry Impact - SpaceX has transformed the space industry by lowering launch costs, fostering a community of companies with access to space, and influencing competitors like Amazon and OneWeb to utilize its launch services [8]