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

Why SpaceX Is Critical for U.S. Space Independence

NEW YORK (TheStreet) -- The geopolitical tensions involving Ukraine and Russia are having a negative effect for an America that is almost entirely reliant on Russian cooperation for its space endeavors.

Enter space travel company SpaceX, which is working to change that, and quickly.

The U.S.'s means of launching rockets that carry satellites into space and its ability to send astronauts to and from the International Space Station need Russian cooperation or are buttressed by Russian technology. That cooperation is in jeopardy if you believe statements released by Russian Deputy Prime Minister Dmitry Rogozin, who threatened to ban all sales to the U.S. of RD-180 engines that are intended for use in military launches. These are critical rocket components.

SpaceX has executed nine successful flights of its Falcon 9 launch system with 50 missions currently contracted at an approximate value of $5 billion. It has met the U.S. Air Force's certification requirement of three successful launches and expects to achieve full certification by year's end.

Here's What It's Like to Work for Elon Musk

These U.S. Stocks Might Get Trapped in Ukraine Conflict

Here's How to Profit When U.S. Dollar Flies on Accelerated Inflation

This certification is critical. It would allow SpaceX to compete for involvement in the Evolved Expendable Launch Vehicle program (EELV), which is intended to facilitate access to space for the Air Force and Department of Defense, among other government entities. Currently the EELV program is led entirely by the United Launch Alliance (ULA), a joint venture of Boeing (BA) and Lockheed Martin (LMT).

The ULA relies heavily on its Atlas 5 rocket as the primary mover of heavy satellites. These rockets are powered exclusively by Russian RD-180 engines, of which there are only 16 in the U.S. for launch until more can be procured. Not only can SpaceX remedy this problem with its all-American-made Falcon 9 rockets, but can do so at a greatly reduced cost compared with ULA’s monopoly.

As SpaceX founder Elon Musk said at a Senate hearing, SpaceX can facilitate launches for less than $100 million. To give that figure some context: ULA’s average price per launch sits at $380 million, an astoundingly high amount in comparison.

1 of 2

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
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs