Motivation for first time car company builders - Space X

(Side Note: it appears that my McDonald's manager from last night's blog was sitting pretty even more at the end of the day today, as each trader whose portfolio was down 7% in one fell swoop will still be piling into a Big Mac tomorrow even if he is just as unlikely to pile into Bank stocks. Food and well-run inexpensive food restaurant options are looking pretty good as investments and jobs.)

On a separate subject, one that is perhaps related only in its relative inexpensive, well-run nature, private Space company, Space X (Space Exploration Technologies), successfully launched its first payload into orbit after a rocket launch from Kwajalein Atoll in the south Pacific. (This is of special note to me as my Marine platoon once drew the short straw of being stationed on Kwajalein in order to protect the atoll from would be attackers during the testing of the Star Wars Missile defense system. But enough about me....)













(Space X)


Space X's successful Falcon 1 rocket cost $100MM to develop and $8MM per copy to launch. While this sounds like a lot, it is actually a tiny fraction of the $150 Billion cost of the Space Shuttle Program and its $1.5 Billion cost per flight. Admittedly, each of these space craft can achieve very different things, but $8MM can be divided into $1.5 Billion over 187 times before the per launch cost can even be compared. Is the Shuttle 187 times better?

Challenging question.

Bravo Space X.

Showing us all that low-cost, challenging disruptive innovation can be achieved.

Now apply that same thinking to making a new low-cost, micro-factory for cars in the US and suddenly it doesn't seem so outlandish to all you cynics.

Go Local....maybe not on Mars just yet :)