SpaceX to raise another $750 million in stock sale; earnings rise to $8 billion in ’23

According to anonymous sources, a new stock sale at SpaceX is likely to raise another $750 million because of enthusiasm on Wall Street for the stock due to the company’s growing earnings, which are expected to double to $8 billion this year.

Last week, CNBC reported that Elon Musk’s SpaceX valuation reached nearly $150B following an announcement of a stock sale by existing investors. According to a copy of the purchase offer sent by CFO Bret Johnsen, which CNBC obtained, the company has entered into an agreement with new and existing investors to sell up to $750 million in stock at a price of $81 per share. This represents a 5% increase from the previous secondary sale at $77 per share, which valued the company at approximately $140B. SpaceX has not provided any comments regarding the purchase offer.

Though the article does not say, that revenue comes from two sources, SpaceX’s rocket launches and its Starlink constellation. In the first case the company dominates the launch industry, because its launch price is so much cheaper than everyone else. In the second case, Starlink is producing so much revenue because Elon Musk forced the company to move fast and get its satellites in orbit quickly. Though both SpaceX and Amazon announced their internet constellations at about the same time, Amazon has still not launched any satellites, while SpaceX has more than 4,000 in orbit. This active and operating constellation has allowed SpaceX to grab market share that Amazon is now likely never to get, even when it begins launching.

All this makes SpaceX very appealing to investors, which is why its private stock price has gone up. It is also why it has been able to raise now almost $11 billion in private investment capital for building both Starlink and its Starship/Superheavy rocket.

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SpaceX launches using its second Falcon 9 first stage on its sixteenth flight

SpaceX tonight successfully launched 54 Starlink satellites into orbit, lifting off from Cape Canaveral.

The Falcon 9 rocket used a first stage flying on its sixteenth flight, landing successfully on a drone ship in the Atlantic. That is the second 1st stage in SpaceX’s fleet to complete that many flights. Both first stages completed their sixteen flights in only three years, which means that those two first stages have actually flown more times than the entire United States rocket industry did annually from 2000 to 2019. I don’t have a full count, but I suspect both stages have launched in those three years more satellites then the totals for almost all other nations, excepting possibly Russia and the U.S. Both probably allowed SpaceX to amortize the cost of those launches considerably, possibly as much as 90%.

Just remember: Rocket industry experts were insisting even as late as 2016 that it was impractical to make rocket stages reusable, that to make a profit “a partially reusable rocket would need to launch 35-40 times per year to maintain a sizable production facility while introducing reused hardware into the manifest.” Based on that calculation, these experts determined with utmost certainty that a partly reusable rocket — like the Falcon 9 — could never make a profit.

Elon Musk must have agreed, and decided he needed an extra profit center for the Falcon 9. Starlink has provided that profit center. It not only needs that many launches, and pays for them, its profit stream from its internet customers is already adding to SpaceX’s bottom line.

Regardless, Musk has proved these “experts” utterly wrong. I always thought they were talking through their hat, but had no way to prove it. Thank you Mr. Musk for proving the point.

Note too that the two fairing halves on this flight were also reused, completing their ninth and tenth flights respectively.

The leaders in the 2023 launch race:

47 SpaceX
26 China
9 Russia
5 Rocket Lab
5 India

American private enterprise now leads China in successful launches 53 to 26, and the entire world combined 53 to 45, while SpaceX alone now leads the rest of the world (excluding other American companies) 47 to 45.

And it is doing this with that impractical, unprofitable, and impossible reusable Falcon 9 rocket. Heh.

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SpaceX launches 22 Starlink satellites using a first stage for 16th time

SpaceX tonight successfully launched 22 Starlink satellites, its Falcon 9 rocket lifting off from Cape Canaveral using a first stage for a record sixteenth time, all achieved with a period of just over three years.

The stage successfully landed on its drone ship in the Atlantic. In addition, the two fairing halves each successfully completed its ninth flight.

In those three years this one first stage flew almost as many times as all of the launches of Russia (24), ULA (20), and Europe (20). Somehow, with those sixteen launches I think SpaceX has fully gotten its full value for what it spent building and refurbishing that stage.

To understand how routine SpaceX has made all this, when that first stage landed tonight there were no cheers at SpaceX, at all. There was just routine silence, as the launch crew proceeded with what has become an entirely routine procedure.

The leaders in the 2023 launch race:

46 SpaceX
25 China
9 Russia
5 Rocket Lab

American private enterprise still leads China in launches 52 to 25, and the entire world combined 52 to 43, with SpaceX by itself leading the rest of the world, excluding American companies, 46 to 43.

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SpaceX launches another 48 Starlink satellites

Using its Falcon 9 rocket, SpaceX today successfully launched another 48 Starlink satellites, lifting off from Vandenberg Space Force Base.

The first stage completed its twelfth flight, landing softly on a drone ship in the Pacific. The two fairing halves completed their fourth and seventh flights respectively.

The leaders in the 2023 launch race:

45 SpaceX
24 China
9 Russia
5 Rocket Lab

In successful launches, American private enterprise now leads China 51 to 24 in the national rankings, while SpaceX by itself leads the entire world combined, excluding American companies, 45 to 42.

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SpaceX launches Europe’s Euclid space telescope

SpaceX this morning successfully launched Europe’s Euclid space telescope, designed to map the spatial distribution of several billion galaxies across one third of the sky.

The first stage successfully completed its second flight, landing on a drone ship in the Atlantic. The two fairing halves completed their first flight.

This ESA science mission would have normally been launched on an Arianespace rocket, but Europe’s ability to launch anything now is nil, as it is about to retire its Ariane-5 rocket (with one launch left) and has so failed to get its replacement, Ariane-6, operational. As such, SpaceX got the business, since it is the cheapest and most reliable alternative.

The leaders in the 2023 launch race:

44 SpaceX
24 China
9 Russia
5 Rocket Lab

In the national rankings, American private enterprise now leads China in successful launches 50 to 24, and the entire world combined 50 to 41, with SpaceX by itself leads the entire world, excluding other American companies, 44 to 41.

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SpaceX launches 56 more Starlink satellites

SpaceX this morning successfully launched another 56 Starlink satellites, with its Falcon 9 rocket lifting off from Cape Canaveral.

The first stage completed its eighth flight, landing on its drone ship in the Atlantic. The fairing halves completed their 7th and 10th flights, with the latter a new record.

The leaders in the 2023 launch race remain the same:

43 SpaceX
24 China
8 Russia
5 Rocket Lab

American private enterprise now leads China in successful launches 49 to 24 in the national rankings, and the entire world combined 49 to 40, with SpaceX by itself still leading the rest of the world, excluding other American companies, 43 to 40.

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SpaceX launches another 47 Starlink satellites into orbit

Just after midnight tonight SpaceX successfully launched 47 more Starlink satellites, with its Falcon 9 rocket lifting off from Vandenberg Space Force Base in California.

The first stage completed its fourth flight, landing on a drone ship in the Pacific. Both fairing halves completed their third flight.

The leaders in the 2023 launch race:

42 SpaceX
24 China
8 Russia
5 Rocket Lab

American private enterprise now leads China in successful launches 47 to 24 in the national rankings, and the entire world combined 47 to 40, with SpaceX by itself still leading the rest of the world, excluding other American companies, 42 to 40.

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SpaceX successfully launches Indonesian broadband satellite

SpaceX yesterday successfully launched an Indonesian broadband satellite, using its Falcon 9 rocket lifting off from Cape Canaveral.

The first stage completed its twelfth flight, landing on a drone ship in the Atlantic. The fairing halves completed their seventh and ninth flights respectively.

The leaders in the 2023 launch race:

41 SpaceX
23 China
8 Russia
5 Rocket Lab

American private enterprise now leads China 46 to 23 in the national rankings, and the entire world combined 46 to 39, with SpaceX by itself still leading the rest of the world, excluding other American companies, 41 to 39.

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SpaceX launches 72 smallsats; lands a Falcon 9 1st stage for the 200th time

SpaceX today successfully launched 72 smallsats using its Falcon 9 rocket, lifting off from Vandenberg Space Force Base in California.

With this launch, SpaceX achieved a significant milestone, successfully landing a Falcon 9 first stage for the 200th time, an achievement that for more than a half century all managers and most engineers in the rocket business claimed was not only impossible, but impractical. They insisted that the first stage would not be able to be reused because of the stress of launch. SpaceX has proved these close-minded fools very wrong. This particular first stage completed its ninth mission on this flight, a number that has become very routine for SpaceX’s Falcon 9 first stages. The stage landed back at Vandenberg,

As of posting the satellites have not all deployed.

The leaders in the 2023 launch race:

40 SpaceX
22 China
8 Russia
5 Rocket Lab

American private enterprise now leads China 45 to 22 in the national rankings, and the entire world combined 45 to 38, with SpaceX by itself leading the rest of the world, excluding other American companies, 40 to 38.

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SpaceX launches another 52 Starlink satellites

Just after midnight tonight (Pacific) SpaceX successfully launched another 52 Starlink satellites, its Falcon 9 rocket lifting off from Cape Canaveral.

The first stage successfully completed its ninth flight, landing on a drone ship in the Atlantic, the 199th time that SpaceX has accomplished this so-called impossible task. The two fairing halves completed their fourth and fifth flights respectively.

The leaders in the 2023 launch race:

39 SpaceX
22 China
8 Russia
5 Rocket Lab

American private enterprise now leads China 44 to 22 in the national rankings, and the entire world combined 44 to 38, with SpaceX by itself leading the rest of the world, excluding other American companies, 39 to 38.

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Space Force awards SpaceX and ULA contracts for six launches each

As part of its long term launch agreement with SpaceX and ULA, the Space Force today awarded both companies contracts for six launches each, all to occur beginning in 2025.

According to the overall agreement, each company got five-year contracts to launch as many as 40 missions. ULA won 60% of the missions and SpaceX 40%. However, the delays to ULA’s Vulcan rocket will likely change those numbers:

In a report released June 8, the Government Accountability Office noted that the NSSL program office continues to order launch services from ULA and SpaceX amid concerns about Vulcan’s delays. β€œULA delayed the first certification flight of the Vulcan launch system … to accommodate challenges with the BE-4 engine and a delayed commercial payload, nearly two years later than originally planned,” said GAO. β€œIn the event that Vulcan is unavailable for future missions, program officials stated that the Phase 2 contract allows for the ability to reassign missions to the other provider.”

One of the reasons that ULA has not hurried its effort to make Vulcan reusable and more competitive with SpaceX is that is already has this guaranteed military launch commitment. It doesn’t need to be as competitive.

What needs to happen is a third or fourth company has to enter the market, giving the military other options. The military also has to cancel this long term launch agreement, which limits the number of companies it will do business with to just SpaceX and ULA. It would be much better to open the competition up to everyone. The ULA would be forced to compete.

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SpaceX successfully launches cargo Dragon to ISS

Capitalism in space: SpaceX this morning successfully launched another cargo Dragon freighter to ISS, lifting off on a Falcon 9 rocket from Cape Canaveral.

This cargo capsule is on its fourth flight. The first stage completed its fifth flight, landing on a drone ship in the Atlantic. The capsule carries about 7, 000 pounds of supplies, including another set of new solar arrays for ISS, and will dock with ISS tomorrow.

The leaders in the 2023 launch race:

38 SpaceX
20 China
8 Russia
5 Rocket Lab

American private enterprise now leads China 43 to 20 in the national rankings, and the entire world combined 43 to 36. SpaceX by itself leads the world 38 to 36, but when you add other American companies it still trails everyone else combined 38 to 42.

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