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The competition heats up: Within three years SpaceX hopes to establish a new satellite operation in Seattle, Washington, employing 1,000 people and focused on the design of smaller, cheaper satellites.
The key quote from the article perhaps is this: “Musk said the office would focus on developing satellites but could also be a base for rocket-design talent uninterested in moving to SpaceX’s base in the Los Angeles area.” To put it another way, California’s socialist and highly restrictive state government has forced Musk to consider an alternative location for the expansion of his company.
His effort should also strike fear into the established satellite makers, who have done relatively little innovative design changes in the past four decades. As SpaceX has done with the launch industry, I expect SpaceX will do with the satellite industry: force them to lower costs while developing new technologies.