"Elon Musk’s Mission to Mars"

Submitted by David on Mon, 2012-11-05 20:24

A very interesting interview with Elon Musk of SpaceX. Some excerpts:

  • "the materials cost of a rocket was around 2 percent of the typical price—which is a crazy ratio for a large mechanical product" - for Tesla Motors materials cost apparently about 20-25% of the total cost.
  • "One of our competitors, Orbital Sciences, has a contract to resupply the International Space Station, and their rocket honestly sounds like the punch line to a joke. It uses Russian rocket engines that were made in the ’60s. I don’t mean their design is from the ’60s—I mean they start with engines that were literally made in the ’60s"
  • "this tendency of big aerospace companies to outsource everything. That’s been trendy in lots of industries, but aerospace has done it to a ridiculous degree. They outsource to subcontractors, and then the subcontractors outsource to sub-subcontractors, and so on. You have to go four or five layers down to find somebody actually doing something useful—actually cutting metal, shaping atoms. Every level above that tacks on profit—it’s overhead to the fifth power."
  • "In many cases the biggest customer has been the government, and the government contracts have been what they call cost-plus: The company gets a built-in profit level no matter how wasteful its execution. There’s actually an incentive for it to make everything as expensive as it can possibly justify."
  • "We have essentially no patents in SpaceX. Our primary long-term competition is in China—if we published patents, it would be farcical, because the Chinese would just use them as a recipe book. But I can give you one example."
  • "Version two of Dragon, which should be ready in three years, should be able to [land on Mars]"
  • "The cost of the propellant on Falcon 9 is only about 0.3 percent of the total price. So if the vehicle costs $60 million, the propellant is maybe a couple hundred thousand dollars. That’s with rocket propellant-grade jet fuel, which is three times the cost of normal jet fuel. That’s using helium as a pressurant, which is a very expensive pressurant. A next-generation rocket could use cheaper fuel and also be fully reusable."