A recent lawsuit has revealed official data regarding the company’s funding sources.
SpaceX’s major funding sources include Starlink, NASA, and the Pentagon.
How much does it cost to manufacture the world’s largest rocket? Thanks to a recent lawsuit, we now have the answer. The environmental organization Save RGV is engaged in a legal battle against SpaceX over Starship launches, which has uncovered some of the company’s financing details.
Save RGV alleges that the deluge system, a huge water spray used during rocket liftoff, is releasing wastewater into the Rio Grande Valley in South Texas without a permit. SpaceX has denied this claim both publicly and in court.
In its lawsuit, Save RGV is seeking to stop launches at Starbase, SpaceX’s facility in Southeast Texas. This was one reason why Starship’s fifth flight was delayed to late November before eventually being rescheduled for Oct. 14.
In its defense, SpaceX argues that the deluge system, which uses potable water to control fire, dust, and debris during launches, has been authorized by the Texas government, the Federal Aviation Administration, and the Fish and Wildlife Service. In fact, the Fish and Wildlife Service concluded in 2023 that the system’s use didn’t cause significant environmental damage.
In the document, SpaceX also mentions that it has invested more than $7.5 billion in the construction of its launch facilities and the development of the Starship-Super Heavy rocket. Interestingly, operating Starbase, including the rocket factory “Starfactory,” costs the company $1.5 billion a year, which amounts to $4 million daily. This figure takes into account personnel, facilities, and other operating costs.
SpaceX’s lawyers told the district court, “Without being able to perform launches, SpaceX would incur this cost with little to no return… the requested preliminary relief would cause significant harm to SpaceX, its customers, and the public interest by significantly delaying development and use of Starship-Super Heavy and the time-sensitive missions and other projects of national importance that it is contracted to serve.”
This makes you wonder…
How Does SpaceX Finance All Its Projects?
SpaceX CEO Elon Musk has previously said that the main source of funding for Starship is the Starlink satellite Internet service, which surpassed 3 million customers in May.
With more than 4,700 active satellites, Starlink operates in a hundred countries and is becoming available on various cruise lines and commercial airlines. This success has propelled SpaceX’s valuation to more than $200 billion. Although Musk still holds the largest stake in the company, he has sold a significant portion to new investors to support Starship’s funding.
As a part of SpaceX, Starlink is a privately held company that isn’t yet publicly traded or reporting results. However, it’s projected to close 2024 with revenues of $6.6 billion. These figures are expected to improve next year with agreements with carriers, who are beginning to utilize Starlink’s Direct to Cell cellular connectivity to provide service in areas without signal.
Paradoxically, Starlink’s future also depends on Starship. The massive rocket will carry out the deployment of the next version of the satellites, known as second-generation Starlink. Thanks to a lower orbital altitude, these new satellites are expected to offer 10 times higher bandwidth and lower latency than the current v2 mini.
However, these satellites will be much larger, which means they can no longer be accommodated on the Falcon 9 rocket. SpaceX has already sought approval from the Federal Communications Commission to provide gigabit-speed service using the new satellites, which the company will probably launch on the Starship spacecraft instead.
Apart from Starlink, the Starship program also receives funding from the Pentagon. The National Reconnaissance Office is developing the Starshield spy satellite network based on the Starlink constellation. Additionally, the Space Force is interested in leasing Starship for military launches from Earth.
NASA has also signed two of the biggest contracts with SpaceX for the Starship program: HLS Option A ($2.90 billion) and HLS Option B ($1.15 billion). These contracts involve using Starship to transport astronauts from lunar orbit to the surface of the Moon during NASA’s Artemis III and Artemis IV missions. However, SpaceX is required to conduct an unmanned test of Starship by 2025 to fulfill its agreement with the space agency.
Image | Kelly Michals
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