April 13, 2024

Business Bib

Business & Finance Blog

Nasa and SpaceX partnership

3 min read

Space X gets new funding from its leading investors, sparking new ideas and making people wonder what will happen next with their collaboration with NASA.

Elon Musk founded SpaceX in 2002 with his final goal of enabling people to live on other planets since the climate crisis began. He was famously part of the senate (more accurately, he hired a representative for SpaceX), but quit when he realized that nobody takes climate change seriously. Surprisingly or not, The National Aeronautics and Space Administration has been a crucial partner and customer for the SpaceX business.

NASA Partnership

In May 2020, two U.S. astronauts reached the space station on a SpaceX capsule, which was the first time in history that humans have launched into orbit on a commercially developed craft. The two are set to return on Aug. 2, making this a cargo-only version of SpaceX’s Dragon. The capsule makes regular runs to the space station, sparking massive interest amongst traders, potential investors, and customers.

Commercial trips

NASA’s Commercial Crew Program is an exciting topic for every investor. They are currently working with the American aerospace industry through a public-private partnership. Their goal is to launch astronauts on American spacecraft from American ground. According to the NASA website, the program wants to provide safe and “inexpensive” transport to and from the space station, which will bring more additional research time and will increase the opportunity for discovery. The space station remains the critical point to NASA’s next step into space exploration, like missions to the Moon and one day to Mars.

SpaceX rising

According to an anonymous source, billionaire Elon Musk’s Space Exploration Technologies Corp. is also talking about raising new capital, which would be worth about $44 billion. SpaceX is in discussions with investors such as Google, Fidelity, and many more to raise about $1 billion at a $270 price. The round would value the company at about $44 billion, meaning it would be one of the most valuable venture-backed businesses in the U.S. This would be before taking into account new income from the investors.

The funding is unlikely to be completed this year, and terms could change any moment. Any new funding would only be a small part of earlier rounds. The last funding effort was for $500 million at a valuation of $36 billion or, to be more precise,  $220 a share.

Morgan Stanley Role

Morgan Stanley (also a SpaceX investor), said that they ultimately could be worth up to $175 billion. SpaceX will likely be a catalyst to increase the importance of space for public investors.

Morgan Stanley said SpaceX had raised about $3.5 billion until now an estimated $50 billion of free cash flow burn from last year to 2032. The majority of Morgan Stanley’s income comes from SpaceX’s satellite called Starlink. While investors can’t own SpaceX stock, it is possible to buy a basket of stocks to play similar trends.

The future is bright

Everything we wrote looks like not only will NASA benefit from SpaceX, but it will also take us to another level with “space taxi.” This would mean that investing and buying would increase significantly since many people are interested in going to outer space. It is still just a story for another decade, but it brings excitement for the stock market and SpaceX itself. Imagine how much faster humans would be able to explore and get information about space, and how weird but fantastic it would be to book a trip to the Moon. Colonizing Mars is an entirely different story, but let’s hope it will not be our ultimate destination. The world will turn to a sustainable solution for the climate crisis. In the end, the Earth is still our home.