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    Analysis of Recent Performance of SpaceX

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    PizzaCake
    SpaceX's annual launch revenue and costs to launch have significantly decreased since partnering with NASA in 2017. Prior to the partnership, SpaceX's highest annual revenue was $1.05 billion in 2014. However, after the public-private partnership in 2017, SpaceX's revenue increased each year, reaching $2.7 billion in 2019. Similarly, the cost for SpaceX to launch a Falcon 9 rocket dropped from $125 million before the partnership to $60 million in 2019. In comparison, SpaceX's competitor ArianeSpace, which does not partner with NASA, has not seen the same decreases in costs or increases in revenue and market share.

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    Analysis of Recent Performance of SpaceX

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    PizzaCake
    121 views3 pages
    SpaceX's annual launch revenue and costs to launch have significantly decreased since partnering with NASA in 2017. Prior to the partnership, SpaceX's highest annual revenue was $1.05 billion in 2014. However, after the public-private partnership in 2017, SpaceX's revenue increased each year, reaching $2.7 billion in 2019. Similarly, the cost for SpaceX to launch a Falcon 9 rocket dropped from $125 million before the partnership to $60 million in 2019. In comparison, SpaceX's competitor ArianeSpace, which does not partner with NASA, has not seen the same decreases in costs or increases in revenue and market share.

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    Analysis of recent performance of SpaceX

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    SpaceX's annual launch revenue and costs to launch have significantly decreased since partnering with NASA in 2017. Prior to the partnership, SpaceX's highest annual revenue was $1.05 billion in 2014. However, after the public-private partnership in 2017, SpaceX's revenue increased each year, reaching $2.7 billion in 2019. Similarly, the cost for SpaceX to launch a Falcon 9 rocket dropped from $125 million before the partnership to $60 million in 2019. In comparison, SpaceX's competitor ArianeSpace, which does not partner with NASA, has not seen the same decreases in costs or increases in revenue and market share.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    121 views3 pages

    Analysis of Recent Performance of SpaceX

    Uploaded by

    PizzaCake
    SpaceX's annual launch revenue and costs to launch have significantly decreased since partnering with NASA in 2017. Prior to the partnership, SpaceX's highest annual revenue was $1.05 billion in 2014. However, after the public-private partnership in 2017, SpaceX's revenue increased each year, reaching $2.7 billion in 2019. Similarly, the cost for SpaceX to launch a Falcon 9 rocket dropped from $125 million before the partnership to $60 million in 2019. In comparison, SpaceX's competitor ArianeSpace, which does not partner with NASA, has not seen the same decreases in costs or increases in revenue and market share.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Analysis of recent performance of SpaceX

    SpaceX’s annual revenue before and after the 2017 NASA public-private partnerships can be

    summarised in the table below. The launch revenue in the table consist of revenue gained from

    SpaceX selling the launch service of rockets to lower earth orbit with payloads to both private and

    public customers.

    Annual Launch Revenues: (Jeffries)

    Year Launch Revenue ($ Billion)


    2014 1.05
    2015 0.95
    2016 1.00
    2017 1.30
    2018 2.02
    2019 2.70

    Prior to the recent 2017 PPP, SpaceX revenues reached a high of $1.05 billion during 2014. Since

    2017 during the recent PPP, SpaceX’s revenue has continuously increased each year, with 2019

    having a launch revenue of $2.7 billion.

    However, the launch revenues of SpaceX are not the only increase in financial performance. One of

    SpaceX’s main objectives to create reusable and affordable products can be summarised in the table

    below. Values as shown evaluate the direct costs for SpaceX in order to build and launch a rocket for

    a customer since. It should be noted that particular details concerning indirect costs for SpaceX could

    not be found which could have increased the specificity of the findings.

    Cost to launch for SpaceX: (Trefis)

    Year Cost to launch ($ million)


    2014 175
    2015 Launch
    157.5 Revenue for ArianeSpace vs SpaceX
    2016 ($ 125.0
    Billion)
    2017 3 72.2
    2018 65
    2019 2.5 60
    Revenue ($ Billion)

    2
    SpaceX
    1.5 ArianeSpace Each year reductions in
    1
    0.5
    costs spent to launch a

    0 Falcon 9 rocket can be


    2014 2015 2016 2017 2018 2019
    Year seen reaching a low of

    $60 million in 2019. In

    initial years prior to the recent PPP costs of building and launching a Falcon 9 decrease less

    substantially than in 2017 where the cost to launch dropped from $125 million to $72.2 million.

    Purely based upon analysis of revenue and reduction of costs for SpaceX to create affordable rockets,

    it is clear that SpaceX has dramatically increased its success ever since 2017, likely due to the public-

    private partnership with NASA and the non-quantifiable benefits which will be discussed later in the

    paper.

    The performance of SpaceX can be further analysed by analysing, Arianespace, one of SpaceX’s

    competitors which does not partake in partnerships with NASA. Following analysis can be

    summarised in the figures below dictating revenue and direct costs to launch.

    Revenue for Arianespace (Arianespace)

    Year Launch Revenue ($ Billion)


    2014 1.54
    2015 1.59
    2016 1.80
    2017 1.44
    2018 1.55
    2019 Data for 2019 is not yet

    available
    From the graph whilst Arianespace has operated with greater revenue for prior years, SpaceX has

    overtaken them with greater revenue, with 2018 boasting the first year where SpaceX’s revenue is

    greater than Arianespace.

    Similarly, in 2019 the cost for SpaceX to send a Falcon 9 rocket is $60 million. Comparing this with

    Arianespace’s Ariane 5 the price is approximately $165 – 220 million depending on the mass of the

    payload.

    The market share of SpaceX can also be evaluated. Positioned in the market of launch services to

    lower earth orbit in 2019 SpaceX had risen to 65% market share (Campbell, 2019). In comparison,

    prior to 2017 SpaceX had an estimated market share of just over 30% in the world commercial launch

    industry (Berger, 2018). The introduction of the PPP in 2017 can be seen to have increased the market

    share in the global launch industry of rockets for SpaceX.

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