In the wake of Elon Musk’s blog post defending SpaceX’s pricing, Lexington Institute COO Loren B. Thompson (who?) has written a reply accusing the South African-born entrepreneur of being a “glib salesman” who has taken “NASA for a ride.”
Musk looks to be a big beneficiary of the Obama Administration’s move to commercialize space travel, mainly because he is willing to make promises nobody else will. His working assumption appears to be that if he reduces prices far below what current launch providers are charging, that will unleash pent-up demand that will permit huge economies of scale in building and launching rockets. No doubt about it, we could definitely build launch vehicles more cheaply if customers were demanding a launch every other week. But the laws of physics aren’t going to change no matter how much demand spikes, and Musk’s track record to date is not encouraging….







