This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

California Vies For New Space Industry

Leaving the planet is worth the risk, he said. Without incentives like limiting the ability of customers and family members to sue, he said the opportunity would never be open to him.

"I'm not under the impression that it's as safe as flying on an airliner or anything remotely like that," he said. "But I do feel like it's the safest way to go to space right now."

In April, Virgin Galactic's space ship completed its first powered flight, as its rocket engine burned for 16 seconds, propelling the ship to an altitude of 55,000 feet as it broke the sound barrier. The company expects to conduct flight testing this year and send people into space soon thereafter.

Other companies are also working to launch people beyond the earth's atmosphere. Billionaire entrepreneur Elon Musk's SpaceX is already ferrying cargo to the International Space Station. Last year, SpaceX signed an agreement with Nevada-based Bigelow Aerospace, which is designing inflatable space stations for research and maybe even tourists. SpaceX and other companies will provide the transportation â¿¿ like airlines â¿¿ and Bigelow the place to stay.

Regulatory and economic incentives play a big role in where companies choose to do business, said Andrew Nelson, the chief operating officer of XCOR, which is pursuing space tourism and hoping to conduct flight tests for its Lynx spaceship this year.

Last year, the company â¿¿ which operates at Mojave Air and Spaceport in Southern California â¿¿ announced it would place a research and development center and corporate headquarters in Midland, Texas, which offered economic incentives and an attractive regulatory environment, including shielding XCOR's suppliers from lawsuits.

Nelson said the company passed over Virginia, Florida, Oklahoma and California. XCOR expects the facility will create jobs and boost the local economy by millions of dollars. He said since California doesn't shield the company's supply chain and could not offer economic incentives, XCOR ruled the state out despite its talented workforce. The company will still have a smaller operation at Mojave and would consider doing more in the state if Knight's bill is enacted.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs