SpaceX seeking another $1.725 billion in investment capital
Capitalism in space: SpaceX has begun another private funding round, now asking for $1.725 billion in new investment capital.
The space venture is looking to bring in up to $1.725 billion in new capital, at a price of $70 per share, according to a company-wide email on Friday obtained by CNBC. Notably, SpaceX split its stock price 10-for-1 in February, which reduced the common stock to $56 a share – with the new valuation representing a 25% increase.
When added to past funding rounds — and including the $2.9 billion provided by NASA for turning Starship into a manned lunar lander — SpaceX will have raised approximately $12 billion total for building Starship.
Sounds like a lot, doesn’t it? Well, compared to what NASA has spent for its expendable SLS rocket (about $60 billion), $12 billion is chicken feed, especially because Starship will not be expendable, but entirely reusable.
If this contrast doesn’t illustrate the strength of freedom, competition, and private enterprise over government, I don’t know what does. Government, not caring about making a profit, produces a disposable rocket costing many billions, and takes two decades to do it. Private enterprise in comparison also wants a big rocket, but it also doesn’t look kindly on throwing away its investment with each launch. It instead insists the cost to build it be constrained, as well as the time to do it.
The result: Government accomplishes little and wastes a lot. Private enterprise makes it happen, and quickly for a reasonable cost.
Capitalism in space: SpaceX has begun another private funding round, now asking for $1.725 billion in new investment capital.
The space venture is looking to bring in up to $1.725 billion in new capital, at a price of $70 per share, according to a company-wide email on Friday obtained by CNBC. Notably, SpaceX split its stock price 10-for-1 in February, which reduced the common stock to $56 a share – with the new valuation representing a 25% increase.
When added to past funding rounds — and including the $2.9 billion provided by NASA for turning Starship into a manned lunar lander — SpaceX will have raised approximately $12 billion total for building Starship.
Sounds like a lot, doesn’t it? Well, compared to what NASA has spent for its expendable SLS rocket (about $60 billion), $12 billion is chicken feed, especially because Starship will not be expendable, but entirely reusable.
If this contrast doesn’t illustrate the strength of freedom, competition, and private enterprise over government, I don’t know what does. Government, not caring about making a profit, produces a disposable rocket costing many billions, and takes two decades to do it. Private enterprise in comparison also wants a big rocket, but it also doesn’t look kindly on throwing away its investment with each launch. It instead insists the cost to build it be constrained, as well as the time to do it.
The result: Government accomplishes little and wastes a lot. Private enterprise makes it happen, and quickly for a reasonable cost.