WESAM HELOUPRATEEK JAIN

NISHY MATHEWANDREW ROSS

Space Exploration Technologies Corporation

SpaceX Making History

Introduction

Commercial orbital transportation services Advanced rockets and spacecraft

Founder: Elon Musk PayPal and Tesla Motors co-founder Invested $100 million USD of his own money in the

company, SpaceX, in 2002 SpaceX today is valued around $1.3 billion USD and

after 2013 when they send off COST2+ the company is estimated to be worth $2.4 billion USD

2/3 of the company owned by Elon Musk

Introduction cont.

Space Exploration Technologies Corporation is also called SpaceX:

Founded in 2002 by Elon Musk Employees : 1800 Vice President: Ken Bowesox Headquartered in Hawthorne California

Launch facilities at the Cape Canaveral Air Force Station in Florida and Vandenberg Air Force Base in California

a rocket development facility in McGregor, Texas; and offices in Washington, DC.

Inventions: Drangon Space craft Contracts: NASA, American government, International

agencies and goverments Future projects: Falcon Heavy system, NASA’s robotic Mars

mission in 2018,

Introduction cont.

• Mission: Develop space transportations, with the ultimate goal of

making it possible for humans to live on other planets.• Future vision:

Keep the technological advances, innovative ideas, and groundbreaking research happening.

To send humans to Mars within 10 to 20 years. Creating reusable aircraft which has never been

attempted successfully in the past.

Company Goals

He was trying to understand why rockets were so expensive and wanted to make spaceflight routine and affordable

His goal is to “revolutionize space transportation and ultimately make it possible for people to live on other planets”

“ Ultimately, our goal is to reduce costs by over a factor of ten, saving billions of tax dollars and helping to launch a new age of discovery,”

Manifest of over 40 launches to deliver commercial satellites to orbit.

Announced its plans for Falcon Heavy, the most powerful rocket in the world

Current endeavors involve ‘reusable rocket’ concept Falcon Dragon

Falcon 1

Falcon 9

Falcon Heavy

Customers/Market

Falcon family launch vehicles Medium and heavy lift launch capabilities Any inclination and altitude (low Earth orbit to

geosynchronous orbit to planetary missions)$4 billion in contracts and more than 40

launches on its manifest Over 60% commercial

Patents and IPRs

They DO NOT file patents, Musk says, because “we try not to provide a recipe by which China can copy us and we find our inventions coming right back at us.”

But he talks freely about SpaceX’s approach to rocket design, which stems from one core principle: Simplicity enables both reliability and low cost. Think of cars, Musk says. “Is a Ferrari more reliable than a Toyota Corolla or a Honda Civic?”

Financial Situation

First 10 years of operation $1 billion in funding

Private equity: 20% Elon Musk: 10% Investors: 10%

Founders Fund, Draper Fisher Jurvetson Long-term launch and development contracts: 50%

40+ contracts for launch missions Down payments at signing Progress payments

Pricing

What sets SpaceX apart? Prices

Falcon Heavy expectations“Our performance will increase and our

prices will decline over time,” he writes on SpaceX’s Web site, “as is the case with every other technology.”

Marketing Plan/Competition

Small market with HIGH risk HIGH reward Relies completely upon past performance

First-mover market advantage/Economies of Scale? COTS program Commercial launches “Red Dragon” Mars mission concept?

Orbital Sciences, Andrews Space, Boeing, Planet Space, SpaceHab, Rocketplane Kistler, Venturer Aerospace, SpaceDev, t/Space, Constellation Services International, Lockheed Martin

IPO?

The decision to take SpaceX public depends on having a “highly predictable revenue stream,” Musk said at the company’s headquarters in Hawthorne, California.

“SpaceX doesn’t absolutely need to go public, so it’s best to delay going public until we have a steady stream of launches occurring,” he said. Late 2013 is the most likely timing, he said.

Organization Structure

Silicon Valley tech firmWorkforce at SpaceX- average age is around 30Flat organizational structureUnorthodox approachesCorporate structureManufacturing responsibility is organized Atmosphere of collaboration

Business Model

Rewritten the rules by adopting a new business model and cutting-edge technologies

Simplicity, low cost, and reliability go hand in hand.Speed in decision making and delivery Majority of manufacturing in-houseSimple, proven designs with a primary focus on reliabilityHigher product quality - tight collaboration between

design and manufacturingNASA made its expertise and specialized facilities

available to SpaceX

First commercial company to recover a spacecraft returning from orbit

True engine out reliability World's first fully reusable launch vehicles.Replace expensive government vehicles as a way into

orbit.Reusable Dragon cargo capsule is set to become the

first private spacecraft to visit the International Space Station.

Innovation

Products

The Falcon Launch Vehicle Family provides breakthrough advances in reliability, cost, flight environment and time to launch.

Falcon 1 is a two stage, liquid oxygen and rocket grade kerosene (RP-1) powered launch vehicle

Falcon 9- wider diameterFalcon Heavy- heavy lift launch vehicle Dragon is a free-flying, reusable spacecraft

Merlin 1-D engine, Kestrel engine- clean sheet design, both been developed from scratch

PICA heat shieldsFriction Washer TechnologyAdvanced composite materials to enhance the

performance of its Falcon rocket and Dragon capsule Developed a launch pad release system

Engine Technology

Space X

GOVERNMENT REGULATIONS

Why did NASA exit from this?

NASA conducted an internal study.

Private firms can develop and operate more efficiently and affordably than a government bureaucracy.

Without COTS agency cannot achieve objectives of the Vision for Space Exploration.

Incentives by NASA to promote

In 2006 NASA announced Commercial Orbital Transportation Services (COTS) program

First round consisted of $500 Million of funding by NASA. SpaceX and Rocketplane Kistler (RpK) won Phase I

June 18, 2007, NASA signed separate non-reimbursable Space Act Agreements with four firms No financial support, only information

Incentives by NASA to promote

In Dec 2008, SpaceX contracted for resupply services for the ISS. 12 missions for SpaceX

While NASA spends 500 million on one flight, SpaceX marks it at $54 million.

How will they make money?

Betting on NASA giving enough business in the next 10 years.

Other commercial customers able to use these rockets

SpaceX has billion dollars of private contracts with satellite operators to launch their satellites.

Challenges for Space X

Seven launches since its inception, three of which were catastrophic failures

Can they transform from boutique space development firm into essentially a production house?

Heavily dependent on NASA contracts and will continue to be for many, many years.

Challenges for Space X

Government oversight and regulations

Company is banking on combination of increased demand and cost avoidance to under-price competitors.

Company relies on vertical integration — pulling parts and component production in-house

Management Lessons

“Numbers will never compensate for talent in getting the right answer. It will tend to slow down progress, and will make the task incredibly expensive.” – Musk

“Rocket engineering is not like ditch digging” – Musk Need one person to do it right, rather than

100.

Make workplace enjoyable

Management Lessons

Triple sign-off for all major critical operations

Lessons from SpaceX applied on Tesla Only all aluminum car in North America

QUESTIONS?

Thank You!