SpaceX: The Final Frontier

On May 25^th, 1961, John F. Kennedy, before a Joint Session of Congress, exclaimed that America would put a man on the moon before the end of the decade. July 20^th, 1969, Apollo 11 lands on the moon and the first human, an American, steps foot on land that was not of Earth. NASA had placed a man on the moon about eight years after President Kennedy made his famous declaration. (NASA, 2013) Over the next several years the United States would send several more missions to the moon, some with dangerous consequences. We grow up learning about the great ingenuity America has that propelled us into space. Until recently, space exploration was completely funded by the United States government through NASA. Today, private enterprise has been leaping toward the opportunity to explore space. Elon Musk founded SpaceX in 2002 as a private sector response to NASA. Its goal is to reduce space travel costs through private enterprise efficiencies and to explore the frontier of space. The company is owned by management and employees with minority investments from Founders Fund, Draper Fisher Jurvetson, and Valor Equity Partners. (SpaceX) While SpaceX may reduce costs for operations NASA has been doing for years, SpaceX will never be on the forefront of space exploration due to the financial realities of space travel.

                SpaceX is a private enterprise with a social aspect. The organizations social involvement may not seem like they are helping society, but NASA, its public equivalent, has helped develop technology that has served humans in extraordinary ways. Lasik eye surgery, artificial limbs, memory foam, LEDs in medical therapies, aircraft anti-icing systems, firefighting equipment, water purification, and solar cells, are just a few of the products that have been developed by NASA. (Office of the CTO, 2011) If SpaceX can replicate the success NASA has had and actually be out in front on space exploration they will no doubt develop technologies to benefit society. However, while SpaceX is a social enterprise because of their goals, they will never be on the forefront of space exploration as their mission statement states.

Elon Musk’s company’s mission statement states: “SpaceX designs, manufactures and launches advanced rockets and spacecraft. The company was founded in 2002 to revolutionize space technology, with the ultimate goal of enabling people to live on other planets.” (SpaceX) SpaceX will not revolutionize space technology, nor will it reach the ultimate goal of enabling people to live on other planets. SpaceX will not revolutionize space technology as they will never be on the forefront of space travel. Elon Musk’s company is over four decade behind NASA in space exploration. NASA has been sending ships with people aboard into low-Earth orbit since the 1960s. (NASA, 2013) SpaceX has been piggybacking on the research and development of NASA to develop their technology. In addition, SpaceX is not on the forefront of science as most large, unknown expansions of research require the government to fund.

                During the 1400s, when Western Europe looked to find a new trading route to India, Spain did not send the Dutch East India Company.  Christopher Columbus was the first to discover the new world for Spain through funding of the government. In the same respect, the only way man goes to the moon is due to government funding. The reason is because of the risk-to-reward of exploration. It is costly, uncertain, dangerous, and has little chance for an immediate return-on-investment. SpaceX will never be able to reach their mission of colonizing another plant (i.e. Mars) because there is no capital market valuation for a project like this. History shows that NASA needs to send people to Mars first before any private enterprise will take-up that endeavor. Given the current political conditions, NASA will not receive enough funding to send someone to Mars. Therefore, SpaceX will never be able to meet its goal.

                Can SpaceX even be considered a social enterprise if they will never be able to reach their goal? Yes, the same way many organizations goal to eradicate poverty is a lofty and unrealistic one. While the hype around SpaceX is indeed grand, the reality is myopic. SpaceX will never be on the forefront of space exploration given they are a private enterprise which seeks to make a return-on-investment. The company will more likely just be a space tourism company for wealthy individuals to reach low-earth orbit. While SpaceX’s dreams are big, the company goals will no doubt suffer a failure to launch.

Dr. Neil deGrasse Tyson, Director of the Hayden Planetarium, discusses private enterprises role in space.

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Works Cited

NASA. (2013, Oct 29). The Decision to Go to the Moon: President John F. Kennedy's May 25, 1961 Speech before a Joint Session of Congress. Retrieved Apr 21, 2014, from NASE History: http://history.nasa.gov/moondec.html

Office of the CTO. (2011, May 1). Value for NASA, Benefits for the Nation. Retrieved April 21, 2014, from NASA Spin-offs: NASA Spin-offs

SpaceX. (n.d.). SpaceX:Company. Retrieved April 21, 2014, from SpaceX Web site: http://www.spacex.com/about