SpaceX just made history.

[mschmoyer]

Good points. Agree with all of it.

[juiceweezl]

Why do you think a fuel tank with a combustion chamber and a nozzle on the end of it (aka a rocket) cost 60,000,000 dollars?

Because there isn't enough demand for Wal-mart to sell them. Like so many posts, you have over simplified a ton. Demand will drive this industry when the time is right. Until then, it's big boy toys for those rich enough to play.

[svauto-erotic855]

Because there isn't enough demand for Wal-mart to sell them. Like so many posts, you have over simplified a ton. Demand will drive this industry when the time is right. Until then, it's big boy toys for those rich enough to play.

Air planes are made on an assembly line and they are still expensive despite a massive demand for them. Rockets are much simpler than a commercial jet. Changing building techniques and going to a simpler design would drop the cost massively for SpaceX but the engineering cost for the redesign would be massive. The old school rocket engines and the supporting hardware is extremely expensive. It was designed with a cost is no object attitude and was very over built because failure was literately not an option and the project at hand was a race against the clock with no time for even considering changing the direction they were going.

[juiceweezl]

Air planes are made on an assembly line and they are still expensive despite a massive demand for them. Rockets are much simpler than a commercial jet. Changing building techniques and going to a simpler design would drop the cost massively for SpaceX but the engineering cost for the redesign would be massive. The old school rocket engines and the supporting hardware is extremely expensive. It was designed with a cost is no object attitude and was very over built because failure was literately not an option and the project at hand was a race against the clock with no time for even considering changing the direction they were going.

Buying an airplane is expensive. Considering there are still planes in service over 50 years old kind of defeats your point though. Again, when the demand is there, cost will come down because someone will figure out a better way. Until then...

[svauto-erotic855]

Buying an airplane is expensive. Considering there are still planes in service over 50 years old kind of defeats your point though. Again, when the demand is there, cost will come down because someone will figure out a better way. Until then...

Firefly had the better way pretty much down pat. They dusted off the plans that NASA was working on for a 2nd generation of space vehicles that were going to be used to explore the solar system. The only reason it did not happen was because of a loss of public interest and the rising cost from President Johnsons "Great Society". Great nations have to make a choice at some point. Do we have a massive welfare state that consumes 2/3rd's of every dollar spent by the government or do we explore the universe.

[mschmoyer]

Do we have a massive welfare state that consumes 2/3rd's of every dollar spent by the government or do we explore the universe.

Same people that want to fix the welfare state sure don't want to turn around and give that money to anything that has to do with "science". "Let private businesses do it" they say.

[Gasser64]

I'd like to ad that we need to destroy then ban the welfare state, and not fix it. Cancer can't be fixed, you've got to be rid of it.

[Ruffdaddy]

Firefly had the better way pretty much down pat. They dusted off the plans that NASA was working on for a 2nd generation of space vehicles that were going to be used to explore the solar system. The only reason it did not happen was because of a loss of public interest and the rising cost from President Johnsons "Great Society". Great nations have to make a choice at some point. Do we have a massive welfare state that consumes 2/3rd's of every dollar spent by the government or do we explore the universe.

No they didn't. Dude you have absolutely no clue what you're talking about here. You have some some outlandish shit for a long time...but this time I can tell you that you are 100% full of it.

Firefly was never about exploring the solar system and certainly didn't have it worked out.

[svauto-erotic855]

No they didn't. Dude you have absolutely no clue what you're talking about here. You have some some outlandish shit for a long time...but this time I can tell you that you are 100% full of it.

Firefly was never about exploring the solar system and certainly didn't have it worked out.

You really need to work on your reading skills. I did not say any of what you are implying at all. Go back and re-read what I wrote before you start spouting off.

[Broncojohnny]

Svoanal fixation has it right.

Tesla builds a pretty good product but they don't do it at a profit. They lose thousands on each car. In some quarters they will lose $30,000 on every car they sell.

I am completely unaware of the economics of Space X.

I want both ventures to succeed and do well but their existence is a symptom of the current high risk low yield capital environment that we have dwelled in for over a decade now. These companies would not exist if interest rates were higher. Because they aren't, these companies are allowed to burn capital instead of turn a profit in the hope that one day the dreams and visions are realized. An abundance of capital that expects little to no return has fostered an environment where quarter after quarter of operating losses are no big deal.

Tesla is not even the worst offender, they lost $330 million in the first quarter of this year. And they build something tangible, an actual product. Uber lost $700 million in the first quarter of this year, stop and think about that for a second and realize that they are a service company that generates nothing beyond a commodity service that others can perform.

It will all come crashing down eventually.

[CJ]

It's important to rememberTesla is operating as designed and according to their business plan. They intend to work down to their 20-30k model and then turn a profit.

[YALE]

It's important to rememberTesla is operating as designed and according to their business plan. They intend to work down to their 20-30k model and then turn a profit.

Doesn't matter. SVO's engineering skills are such that he could build the black monoliths from 2001: A Space Oddity.

[YALE]

You do not understand the game being played. Mr Musk is a carnival barker who keeps up the hype to keep the money flowing so he can keep the project going. This is being done to fulfill his dreams and not for profit. The people putting money into the deal expect a profit but it is unlikely there will ever be one. Look at Tesla if you want an example of what I am saying. People are convinced that company is worth just a touch over 61 billion when their total annual revenue is not even 10% of that, they have never made a profit, they do not pay a dividend, and every asset the company owns totals up to about 1/3rd of that. The other 2/3rds (or 40 billion dollars) in value comes simply from Mr Musk selling the hype and as Flavor Flav wisely said "Don't believe the hype".

Hey man, that's even more reason for you to fire up a competitor! You can do it!

[svauto-erotic855]

Doesn't matter. SVO's engineering skills are such that he could build the black monoliths from 2001: A Space Oddity.

Funny you say that but I built a pool about 8 years ago that had something like that at the far end as seen from inside of the house.

Hey man, that's even more reason for you to fire up a competitor! You can do it!

You do not see what is going on here. I do business to make a profit. SpaceX is not in the business of making a profit and you can not compete with that business model as long as fools are willing to continue funding it.

[svauto-erotic855]

It's important to rememberTesla is operating as designed and according to their business plan. They intend to work down to their 20-30k model and then turn a profit.

I would not hold my breath waiting......

If I recall corectly you are a numbers guy so crunch some numbers and see how many of their cheap cars they would have to sell each year to even cover their monthly losses. I will make it easy and say to assume that the sales price for every car sold is 100 percent profit.