WSJ Report: SpaceX Recorded $260 Million Loss in 2015


The Wall Street Journal managed to get a hold of some internal SpaceX financial documents. The results are very interesting:

  • SpaceX lost $260 million in 2015, the result of an explosion of a Falcon 9 rocket that grounded the rocket for six months;
  • Elon Musk’s company ended 2015 with $1.3 billion in cash, primarily from a $1 billion investment by Google and Fidelity investments “as well as huge upfront payments for development work and launch reservations”;
  • Although SpaceX’s revenues peaked at $1 billion in 2014, its operating profit was thin;
  • SpaceX projected $55 million in operating profit for 2016 based on launching 20 times, but it only flew eight times before a Falcon 9 exploded on the launch pad on Sept. 1 and grounded the booster;
  • SpaceX projected launching 27 times in 2017 with an increase to 44 in 2018;
  • Despite a long-standing claim that the SpaceX was “profitable and cash-flow positive,” the company had an operating loss in every quarter in 2015 and a “negative cash flow of roughly $15 million”;
  • SpaceX removed the claim that it was “profitable and cash-flow positive” three weeks after a Falcon 9 exploded on the launch pad on Sept. 1, indicating that it likely lost money in 2016;
  • The company is betting big on its 4,000-satellite Internet business, expecting it to generate annual operating profits of $15 billion to $20 billion by 2025; and,
  • The satellite Internet business is Musk’s big hope for funding his plan to colonize Mars.

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