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Launch price does not necessarily tell us anything because we do not know what profit margins SpaceX has.



hmm. So they could be losing money on each launch? But, why would they would they choose to sell at a loss when they could beat the competition at twice the price?


> But, why would they would they choose to sell at a loss when they could beat the competition at twice the price?

Because they promised to cut prices by an order of magnitude. Following a promise like that, you can't just offer a 10-15% price reduction.

Plus, if they offered at twice the current price, I don't believe they would be competitive. Part of the reason they offer a low price is that they have still-new, not-fully-tested technology. Clients accept the increased risk, but they expect significant savings in return.

Also, for certain flight configurations, SpaceX's pricing isn't particularly competitive even at its current level.


Ah, I wasn't thinking about their commercial business. I can imagine how that would be more price sensitive.


Ah, got it.


I don't beleive this, but it's possible that SpaceX are selling launches at below cost to drive demand so that they can get up to a scale where they're economical and in order to establish a dynamic in the industry where known low cost launches enable new projects that will cause higher demand in the future.




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