SpaceX launches satellites regularly, but Starship flights are vital to company success

SPACEX PREPARES FOR SARSHIP TEST FLIGHT 15

 

SpaceX is in the business of getting to space, but the ambitions of its owner Elon Musk frequently make the headlines as often as flight launches. Behind Musk’s talk of creating a manned mission and then a settlement on Mars is a company involved in more technical work: launching satellites, building a business around reusable rockets and sending astronauts into space.

 

Rocket launches to global internet business

SpaceX began by developing rockets that could be reused rather than discarded after a single flight. Its Falcon 9 rocket became the workhorse of the business, carrying commercial satellites, NASA missions and US government equipment into space. Being able to land and reuse its boosters has helped SpaceX cut launch costs and win contracts. Today, however, much company growth comes from Starlink, its satellite internet service. Customers including airlines, shipping companies and governments all pay for access. SpaceX also makes money by launching satellites for other companies and through its growing AI business. In the third quarter, revenue reached $14.6 billion, up 161% from a year earlier. Its current project is Starship, a much larger rocket that can carry more satellites, people and equipment into space at a lower cost. SpaceX hopes to use it for future missions to the Moon and Mars, and also plans to build large computing facilities in space. But first, it needs to prove that Starship can fly reliably and be reused.

Flight 15: a major test for Starship

The next test flight is scheduled for Friday, November 13. For the first time, Flight 15 will attempt to return both the Starship spacecraft and its Super Heavy booster to the launch site, where the launch tower's mechanical arms will attempt to catch them. Recovering both stages would be considered a major breakthrough. Reusing the entire rocket would reduce the need to build a new vehicle for every mission and could make launches much cheaper. The flight is also expected to carry Starlink satellites into orbit. But even if the launch boosters aren’t caught, the return of the spacecraft could be considered a partial success.

SpaceX shares: volatile first year on stock exchange

SpaceX went public on June 12 at $135 a share, in a record-breaking $75 billion IPO. The stock price initially surged, reaching over $225 in June. It closed at $143.09 on November 10, above the original offer price. The shares have been driven by excitement about Starlink, the company's growing AI business and expectations that Starship could open up new sources of revenue. SpaceX’s October earnings showed revenue and profits well above forecasts. However, the recent pullback reflects worries about the cost of AI infrastructure and the political uncertainty following the US midterm elections.

Democratic Midterm victory causes concern

The technology sell-off picked up steam after Democrats won majorities in Congress in the November 3 midterm elections amid fears that the new Congress could make it harder to build AI data centres. SpaceX is increasingly exposed to this business through its AI computing operations, which accounted for over half of its revenue. There is also the possibility of investigations into Musk's companies and his relationship with the Trump administration. Democrats have already outlined plans to examine the Department of Government Efficiency, which was headed by Musk. This means SpaceX faces greater potential scrutiny, and possible new restrictions could make some of Musk's plans harder to carry out.

Musk's plans to bring SpaceX and Tesla together

On October 20, Musk confirmed that SpaceX and Tesla had formed committees to discuss a possible merger. Musk has outlined the overlap between their work on AI, chips, robotics and energy. However, shareholders would still need to approve a deal in the future. The two companies are also working on Terafab, a planned chip-making complex in Texas that would produce processors for AI. Intel is involved in the project, while discussions have also taken place with Taiwan's TSMC. The aim is to reduce reliance on outside chip suppliers such as NVIDIA and Samsung and secure more of the technology needed for Musk's businesses.

Conclusion

Starship Flight 15 is an important test, but the bigger question is whether SpaceX can turn its big ambitions into a profitable business without running into delays, rising costs, or political obstacles. The company has already changed the space industry, but its next stage of growth will depend on whether it can deliver on some very expensive promises.