Business Breakdowns
Episode 194 SpaceX: Rocket Ship
Business Breakdowns

Episode 194: SpaceX: Rocket Ship

Business Breakdowns

Episode 194

SpaceX: Rocket Ship

Luke Ward is an Investment Manager at Baillie Gifford. We cover the costs and components behind a SpaceX rocket launch, how Starlink became both a consumer darling and the economic engine of the business, and the many new business lines that spaceflight might unlock in the future.

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Show Notes

(00:00:00 Welcome to Business Breakdowns

(00:05:53) SpaceX: A Blend of Business and Technology Innovation

(00:06:30) Baillie Gifford's Investment Journey with SpaceX

(00:09:53) Challenges and Innovations in Space Launch Costs

(00:11:24) The Rise of Private Space Companies

(00:15:23) SpaceX's Reusability and Cost Efficiency

(00:18:25) Starship: The Future of Space Travel

(00:26:05) Starlink: Revolutionizing Satellite Internet

(00:32:01) The Potential of Space-Based Manufacturing

(00:36:31) Competitive Advantage of Starship

(00:37:19) Management and Culture at SpaceX

(00:39:55) Government and Commercial Markets

(00:40:45) Starlink's Future and Connectivity

(00:44:11) SpaceX's Long-Term Vision

(00:51:11) Regulatory and Launch Challenges

(00:54:49) Valuation and Investment Insights

(01:02:23) Lessons from SpaceX

SpaceX: Rocket Ship

Introduction

Matt
This is Matt Reustle, and today we are breaking down SpaceX. We are always serious about the quality of our Business Breakdowns, but there is especially no room for error when you cover a name like SpaceX. Luke Ward from Baillie Gifford was the perfect match for this episode.

Luke and his team at Baillie Gifford first invested in SpaceX in 2018. As you will hear, they appreciate the science, the business, and everything that goes into running this operation. In this conversation, we covered the story of SpaceX and the scientific magic in what they're doing, but I really wanted to understand the business, and Luke exceeded all my expectations here.

We really focus on the cost curve of launches, separating the manufacturing from the reusability factor, and then we get into how Starlink represents a key component in making the Starship program and the broader economic model work.

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