The surge of new space companies in the last few years has impressed even veteran industry
observers. As the companies that invest in space industry are mostly billionaires and the space
industry requires huge investment and risk involved in it, as the return get from space industry
is so high that in few years the space companies increases their profits from millions to billions
and the only companies that have high VC funding only invest in space industry for example
spaceX that is founded by ELAN MUSK a dotcom billionaire (also known as real work Ironman)
in 2002. And the Blue origin was founded by Jeff Bezos, CEO of Amazon and a multibillionaire in
the year 2000. They both are billionaires and they do not concern about risk or investment
amount involved in it they only want to bring innovation in the space industry. As the people
know that person or company always, that bring a new innovation in the world for example Neil
Armstrong that was a first person who went to moon and everyone knows about it, so they also
want to make them first space company that go to mars and find that either any possibility of
life on mars and the blue origin has its dream to move factories and people into space to live
and work there.
I have chosen the space X due to its many innovations. In the past NASA and many other space
companies can launch their rockets in the space and they destroyed there and not safely come
to the earth but in December 2015 space x introduced a rocket name Falcon 9 that was
successfully vertical landing and this was the first achievement by the rocket for orbital
spaceflight. In 2016 they successfully vertical landed the first stage on ocean drone ship landing
platform. In January 2020 they launch their third star link project and the space X now become
the largest commercial satellite constellation operator in the world. As the rocket prices are
very high if the space X buy from other country like Russia so ELAN MUSK decided to make it
own company to build affordable rockets that he needed, Musk calculated that the raw
materials for building a rocket were only three percent of the sales price of a rocket at the time.
Musk believed SpaceX could cut launch price by a factor of ten and still enjoy a 70% gross
margin. Now the NASA and other space companies can buy their rockets from space X.
If I am an investor than I would prefer the space X because before choosing a company I see its
financial reports its balance sheet, profit and loss account to check its financial position wether
it goes into profit or loss to avoid the risk factor and also check the stock prices of this company
by analyzing the stock market as we know that space x is now a day’s market leader in this
industry as it brings so many innovations and the Tesla’s stock price has been gain in the last
year and due to this CEO’s net worth increase into a level of worth enjoyed by almost nobody.
Last year ELON MUSK was worth a $22.4 billion but as of market close on August 31, 2020 that
number had risen to $115 billion according to Bloomberg’s billionaire’s index. Now a day’s
many competitors come in the space industry and all are having the mission to go on mars first
due to this that company that bring the innovations most of the investors move towards it so
that’s why I prefer to invest in it.
