Hey everybody, welcome back to the Elon Musk podcast. This is a show where we discuss the critical crossroads that shape SpaceX, Tesla X, The Boring Company, and Neuralink. And I'm your host, Will Walden. So right now, the space industry is witnessing pretty big shift in the cost dynamics of launching rockets into space. And SpaceX in a Falcon 9 rocket which offering launches for as low as $67 million, has been a disruptive force in reducing space travel cost for about a
decade now. Now, in a remarkable crazy turn of events, ULA the United Launch Alliance with it's at a joint venture between aerospace giants Boeing and Lockheed Martin. They're showing a formidable challenge to SpaceX with the Vulcan Centaur rocket, brand new rocket that's potential levelling of the playing field with this competitive space
market. Between SpaceX and every other competitor you know, Spacex's journey in lowering space travel costs has been pretty well documented, slashing prices from 1 standard $400 million per launch to about $70 million. And the development of their Starship vehicle, aiming to launch more cargo for a significantly less, shows that they're going to get even better at what they do.
However, despite the progress, the Starship is yet to complete a successful test flight to orbit, leaving room for competitors to play a little bit of catch up here. Now ULA, which is long perceived as an old space program and they're trailing behind SpaceX in cost effectiveness, appears to have made it a leap forward with the Vulcan Centaur rocket. Originally replacing the costly D4 Heavy.
The Centaur rocket is being positioned by ULA is a cost competitive alternative to Spacex's Falcon 9 and other offerings, with an aim to launch for under $100 million. Now, the allocation of 21 launch contracts by the US Space Force, split almost evenly between SpaceX and ULA, has been a spotlight on the pricing strategies of both companies. ULA secured 11 launches at an average cost of about $118 million per launch. Marginally undercutting SpaceX
is $120 million per launch now. This suggests a very narrow gap now between the two rivals, and despite the apparent parody and launch costs, a deeper analysis reveals nuances though. Ula's launches are all slated for the Vulcan Centaur, whereas Spacex's contracts include both Falcon 9 and the more expensive Falcon Heavy launches. Adjusting for this mix, Big Six's Falcon 9 launches would still be slightly more expensive on average, but the difference is increasingly marginal now.
The pricing parity between SpaceX and ULA raises questions about the future financial performance of Boeing and Lockheed Martin, though, which is the parent companies, the ULA. And there's speculation that they might sell ULA. But even if they retain ownership, the impact on revenue and profit margins remains
uncertain. Lockheed has already seen a decline in space revenue and profit margins due to competition from SpaceX. And if the Vulcan Centaur proves cheaper to build and operate than UL as previous outlets and Delta rockets, it could stabilize or even improve the company's financials. This will be a welcome development for investors in Bowie and Lockheed, aligning with ULACEO Tory Bruno, friend of the show commitment to
reducing launch costs. Now SpaceX continues to demonstrate its capabilities with recent successful launches. The USSF 52 mission for the US Space Force using the Falcon Heavy was launched from Kennedy Space Center carrying the Boeing built X37B. They work together here, and this mission highlights that SpaceX will of course work with anybody, as long as they're giving the money to launch
whatever they want to launch. Now, the X37B, which is a reusable spacecraft, it's a space plane similar to the old space shuttle, is set to test new space domain awareness technologies and other experiments. Now this mission, according to Boeing's top secret, will push the boundaries of space exploration and offer benefits to the wider space faring community. And this is an innovative program by Boeing and the Space Force launched on a Falcon Heavy rocket.
Now, the successful launch of the USSF 52 mission shows that the US Space Force's dedication of national security and technological advancement, and they will use any vendor that will give them a good price. So could it be ULA? Could it be SpaceX in the future? We're not 100% sure, but probably both in the coming years. Now, the recent developments in the space launch market reflect a kind of evolving landscape here, where price competitiveness is finally
becoming increasingly crucial. Companies like ULA have had high prices 4 decades, and now ULAS, Vulcan, Centaur, and Spacex's Falcon 9 and Falcon Heavy rockets are at the forefront of these shifts, offering more cost effective solutions for both commercial and government space missions. And as ULA and SpaceX continue to vie for dominance in the space launch market, the industry is likely to witness further innovations and cost reductions.
The competition between these two mega giants not only influences the respective financial performances, but also shapes the future trajectory of space exploration and tech. Now, investors in Boeing, Lockheed Martin, and other companies involved in the space industry will closely monitor
this. The balance between maintaining profitability and staying competitive in pricing will be crucial for these companies to continue offering services to the government Now. This reduction in launch cost has broader implications for the overall space exploration field. Lower costs open up new possibilities for scientific research, satellite deployment and even human rated crude missions to space. Now this could potentially accelerate the pace of discovery and innovation in outer space.
Government entities like the US Space Force also play a role in this, not only as customers, but also as partners in advancing technological capabilities. Their contracts and missions are vital for the sustained growth and development of space capabilities. Most of our technology now was built in the space age when government contracts were huge with companies like this and they innovative so many technological leaps due to this competition.
So SpaceX, ULA, this competition is great, not just for them, but for all of us involved. Now, this is an important juncture right now between ULA, Vulcan Centaur, and Spacex's Falcon 9 Falcon Heavy rockets. This competition is not just about market share though, and not just about money, but also about our own futures. And these companies will continue to innovate and will continue to drive down costs.
Because if they can drive down costs, they'll get more money from the government and more money from the Department of Defense. And they'll innovate for all of us. Hey, thank you so much for listening today. I really do appreciate your support. If you could take a second and hit the subscribe or the follow button on whatever podcast platform that you're listening on right now, I greatly appreciate it. It helps out the show tremendously. And you'll never miss an
episode. And each episode is about 10 minutes or less to get you caught up quickly. And please, if you want to support the show even more, go to Atreoncom, Stage Zero, and please take care of yourselves and each other and I'll see you tomorrow.