How SpaceX Has Rocketed Past the Competition
By Sryan Jokhoe
Winter Articles Challenge 2025
The latest obsession among the ultra-wealthy seems to be space exploration. From Jeff Bezos’
Blue Origin to Richard Branson’s Virgin Galactic, billionaires are racing to conquer the final
frontier. Yet, Elon Musk’s SpaceX has surged ahead of the competition, claiming its spot as the
clear frontrunner. With a staggering $350 billion valuation, SpaceX isn’t just leading the space
race—it’s now the world’s most valuable private company. But how exactly has Musk managed
to transform what once seemed like a distant pipedream into a highly lucrative reality?
It all started in 2001, when Musk was browsing NASA's website and was disheartened to find no
concrete plans for any expeditions to Mars. Given that the moon landing had occurred just a few
decades earlier, he had expected Mars exploration to be on the horizon. He decided to pick up the
slack and founded Space Exploration Technologies Corp. (SpaceX) in March of 2002. Initially,
the plan was to purchase refurbished missiles from Russia and repurpose them for space
exploration. However, after facing difficulties with the Russians, who even mocked him by
saying, “Oh, little boy, you don’t have the money?” (a quote that’s aged worse than milk), Musk
decided to build the rockets from scratch.
From the outset, SpaceX’s approach was radically different from that of its competitors. Most
aerospace companies relied on disposable rockets, meaning each launch would incur massive
costs. SpaceX, on the other hand, focused on reusability—an idea that had been deemed
impossible by many in the industry. The first major breakthrough came with the successful
landing of the Falcon 9 rocket in December 2015. This was the first time a rocket had been able
to land vertically after a mission, and it marked the beginning of the company’s disruptive
journey. By reusing rockets, SpaceX was able to drastically reduce the cost of space travel,
positioning itself as a more affordable option for both government contracts and private ventures.
But cost efficiency was just one piece of the puzzle. Innovation was at the core of its strategy.
SpaceX’s revenue model is just as innovative as its technology, drawing from multiple streams to
secure its dominance in the aerospace industry. A significant portion of its earnings comes from
launching satellites into orbit for commercial and government clients, offering a cheaper
alternative compared to the competition. Thanks to its rockets’ reusability, SpaceX undercuts
competitors on launch costs while delivering reliable services, making it a go-to choice for
companies like Amazon’s Kuiper, and various telecommunications providers. Additionally,
SpaceX has secured lucrative contracts with NASA, including the high-profile Commercial Crew
Program, which transports astronauts to the International Space Station (ISS). In fact, SpaceX
has been the first private company to send astronauts to the ISS.
Perhaps the company’s most ambitious moneymaker is its Starlink satellite internet service. With
thousands of satellites already in low Earth orbit, Starlink aims to provide high-speed internet to
even the most remote corners of the world. If fully realized, this venture alone could generate
tens of billions in annual revenue. Together, these diversified income sources have transformed
SpaceX into a financial juggernaut, even surpassing ByteDance (TikTok’s parent company) to
become the most valuable private company.
SpaceX isn’t just about rockets—it’s about creating an ecosystem. From satellite internet services
to space tourism, Musk has turned some clever ideas into a diversified revenue model, reducing
risk and fueling growth. These diverse revenue streams serve as funding for Musks’ ultimate
ambition of making humanity a multiplanetary species. After all, SpaceX’s long-term goal
was—and still is—Mars colonization.
Cited Works
Isaacson, W. (2023). Elon Musk. Simon & Schuster.
Junod, T. (2012). Elon Musk: Triumph of His Will. Esquire.
https://www.esquire.com/news-politics/a16681/elon-musk-interview-1212/