On September 17th Space X which was funded by Elon Musk was chosen by NASA for the space shuttle development plan. Amongst all the leading aviation enterprises, the nearly-established company, SpaceX received 2.6 billion dollars as a development expense from NASA. Why has a young company like Space X been chosen by NASA for the new space ship development plan? It had been a common notion that spaceship businesses could only be managed by the major companies, which have a large amount of funds and distinct achievements. However, Space X overturned this idea. SpaceX gains an advantage over other similar industries in terms of its quality of spaceship at the low price. SpaceX is especially focusing on developing low cost space rockets; “cost leadership”. Moreover, SpaceX has already succeeded in couple flight experiments, which appear to be a huge advantage over its competitors. Elon Musk is also a founder of Tesla motors. Tesla is known for high quality electric sports car. Now they are seeking for mass production of their cars. In order to do so, it is essential to reduce the cost of high quality batteries used for the cars. They are now planning to build a Giga factory for the production of batteries with a financial assistance from their partner companies. Because their cars are powered by solely electricity, and electric cars bring about employment opportunity in the US, they receive a preferential privilege in terms of taxation from governments of Nevada and California.
The main focus of both of Space X and Tesla motors is not simply pursuing a substantial profit. Rather, they challenge various kinds of things by an innovative approach so as to simultaneously realize energy saving and low cost. Such corporate philosophy and high aspirations are being recognized by the governments and investors led to the great result like this today. We can anticipate that Elon Musk will blow people’s minds by his new, bold and innovative activity in the future.
Bibliography
PASZTOR, ANDY. “Sierra Nevada Challenges NASA Awards of Space Taxi Projects to Boeing, SpaceX.” The Wall Street Journal. Dow Jones & Company, 2014. Web. 27 Sept. 2014. http://online.wsj.com/articles/sierra-nevada-challenges-nasa-awards-of-space-taxi-projects-to-boeing-spacex-1411777886
Davenport, Christian. “NASA Awards Space Contracts to Boeing and SpaceX.” Washington Post. The Washington Post, 2014. Web. 27 Sept. 2014. http://www.washingtonpost.com/blogs/the-switch/wp/2014/09/16/nasa-awards-space-contract-to-boeing-and-spacex/