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SpaceX Launch Overnight: Everything To Know About Launch Kicking Off New Year's Eve At The Cape
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SpaceX, Palantir, And OpenAI Reportedly Teaming Up To Score Some Sweet, Sweet Defense Contractor Cash
New Four Horsemen of the Apocalypse just dropped: According to the Financial Times, major defense technology companies Palantir and Palmer Luckey's Anduril are in conversations with SpaceX and OpenAI (among other tech players) to form a consortium to bid for US government defense contracts.
The goal of the group, which reportedly plans to announce its membership as soon as January, is to disrupt the "prime" contractors who have a habit of scoring major deals with the Pentagon. In the crosshairs of the consortium, there's Lockheed Martin, Raytheon, and Boeing.
There is little question that the legacy brands do well bidding on defense work. According to the Department of Defense's Fiscal Year 2023 review, Lockheed Martin took home $61.4 billion, RTX (née Raytheon) scored $24.1 billion, and Boeing got a cool $20.1 billion. In 2021, 71% of all of Lockheed Martin's revenue came from contracts with the US government. Just under 50% of all annual sales for Boeing and RTX went to the feds during the same time period. As The American Prospect has previously pointed out, these are basically state-funded companies but the government has no real control over operations or leadership.
So would the safety and security of the country improve by disrupting the big three's vice grip on the Pentagon? Probably, under the assumption that mass-producing weapons of war and supplying them to allies for conflicts that range from mostly just to genocidal is a net positive on national security, which, let's call that dubious.
But this particular collection of tech firms as the hammer to bash the oligopoly? It's not clear that this is an improvement upon the status quo.
Palantir has carved itself out a niche as the Defense Department's go-to for AI systems. Just this year, it snagged a $100 million contract to build the military AI-powered targeting tools and $480 million to expand the Pentagon's data analysis and decision making tools. The company has been more than happy to lend its tech to programs that are at best ethically questionable, including being the technological backbone of the Trump administration's Immigration and Customs Enforcement, helping lead to the breakup of migrant families and facilitating mass raids that led to the separation of children and parents. The company's technology has also been central to Israel's ongoing seige in Gaza that has killed over 45,000 people.
Anduril, called "tech's most controversial startup" by Bloomberg, has built sensor towers for use on the US-Mexico border to track migrants and has explored the development of autonomous weapons. The company's big play is building drones for warfare, but it also has its eyes on building surveillance satellites, all of which carry some serious ethical questions attached.
OpenAI recently announced a partnership with Anduril to work on anti-drone systems, but it seems likely that will be the first of many collaborations if the consortium comes together. The agreement, which has caused some upheaval among OpenAI employees who don't particularly want to be involved in doing defense work, comes after OpenAI quietly removed language from its usage policy restricting the use of its technology for military and warfare purposes.
And on top of all that, It's Peter Thiel all the way down, baby. Thiel, the techno-libertarian lizard man who has not-so-quietly been trying to place his acolytes in as many branches of government as possible, has his hands in basically all of these firms. He founded Palantir, co-founded OpenAI, put major financial backing behind Anduril, and was an early-stage investor in SpaceX. He's proven himself to be a less-than-scrupulous person with an ideology that can far-too-generously be summed up as "technological progress no matter the human cost." Thiel's biographer, Max Chafkin, told Time that Thiel is worth fearing, stating, "When you combine the hostility to democracy and institutional norms with the bankroll of a billionaire you can potentially do some damage."
Suddenly, maybe the malignant but status quo evil of the old school defense contractors doesn't seem quite as bad.
SpaceX Stock Is Going To The Moon—Are You Joining The Liftoff?
TOPSHOT - The SpaceX Starship lifts off from Starbase near Boca Chica, Texas, on October 13, 2024, ... [+] for the Starship Flight 5 test. SpaceX successfully "caught" the first-stage booster of its Starship megarocket Sunday as it returned to the launch pad after a test flight, a world first in the company's quest for rapid reusability. (Photo by SERGIO FLORES / AFP) (Photo by SERGIO FLORES/AFP via Getty Images)
AFP via Getty ImagesThe race to explore the cosmos has never been more competitive, and at the forefront of this new space age is SpaceX. With its revolutionary technology, cost-efficient launches, and global projects like Starlink, SpaceX isn't just reaching for the stars—it's already there, changing the way we think about space travel and the future of commercial space exploration. But what does this mean for investors? Can SpaceX's skyrocketing potential translate into incredible return? Can retail investors even participate, or will you miss the liftoff? Fortunately, the XOVR ETF has the answer.
When it comes to launching payloads into space, cost is a major factor. NASA, the long-established leader in space exploration, spends a staggering $54,000 for every kilogram of payload sent into orbit. In contrast, SpaceX has brought that price down to a jaw-dropping $150 per kilogram. This efficiency alone gives SpaceX a massive competitive edge, allowing them to offer affordable launch services to private companies, governments, and even non-profit organizations around the world.
But it gets better. While NASA's average cost per launch hovers around a massive $2.2 billion, SpaceX achieves the same mission for just $10 million. This vast difference in cost isn't just impressive—it's revolutionary for the future of space exploration and commercial space endeavors.
Launch Frequency
The rate at which SpaceX launches rockets is another area where the company shines. SpaceX sends 135 rockets into space every year, compared to NASA's 135 rockets over 30 years. This exponential difference in launch frequency is a testament to SpaceX's robust capacity to serve the commercial and scientific space markets. This rapid pace also positions SpaceX as a dominant force in the space launch industry, enabling it to outpace competitors and meet increasing demand for space exploration.
The Power of Starlink
One of SpaceX's most exciting initiatives is Starlink, the company's satellite internet service. While most people associate SpaceX with launching rockets, Starlink has become a key player in its long-term growth strategy. The idea is simple yet ambitious: provide high-speed internet to remote and underserved areas around the world using a network of low Earth orbit satellites.
As of now, Starlink is already operational, offering internet to places that have long been left out of the digital revolution. This not only creates a new revenue stream for SpaceX but also positions the company as a global leader in the telecommunications space. With the potential to bring connectivity to billions of people, Starlink could significantly boost SpaceX's profitability over the next decade, adding even more value to the company's already impressive portfolio.
The Sky's the Limit
SpaceX's meteoric rise in the space industry has naturally led to speculation about its valuation. Two years ago, the company was valued at $100 billion, but with the continued success of its rocket launches, Starlink's rapid expansion, and future projects like the Starship mission to Mars, that number is likely to be much higher today.
However, despite this explosive growth, SpaceX remains a private company, meaning retail investors don't have a direct way to buy shares on the stock market. This creates a challenge for those who want to get in on the action. But not to worry—while you can't buy SpaceX stock directly, new opportunities for retail investors are emerging.
One way investors can gain exposure to SpaceX is through closed-end funds that include SpaceX as part of their portfolio. However, there are a few downsides. First, investors are often paying a huge premium to net asset value (NAV)—sometimes as high as 12.5 times the underlying value. Additionally, these funds charge management fees in the range of 2.5% to 3%, which can erode long-term returns.
XOVR ETF: A Smarter Option
For those looking for a more accessible and cost-effective way to invest in SpaceX, the XOVR ETF offers a compelling alternative. This exchange-traded fund provides exposure to SpaceX (which holds the largest position in the fund), and it comes with several key advantages:
With the XOVR ETF, investors can gain exposure to SpaceX's incredible growth potential without dealing with the inflated premiums or high fees that come with other investment options. Currently, SpaceX is the top holding in XOVR ETF.
Why SpaceX's Growth Matters
The growing interest in SpaceX, both as a technology company and as an investment opportunity, is no accident. The company's cutting-edge innovations are not only revolutionizing space travel but also setting the stage for future advancements in telecommunications, artificial intelligence, and global connectivity.
For investors, SpaceX represents a unique opportunity to support a company that is paving the way for the next frontier of human progress—whether that's launching humans to Mars, providing internet access across the globe, or transforming the commercial space market. The sky's the limit for SpaceX, and as the company continues to break new ground, its valuation is likely to soar even higher.
Conclusion:
As SpaceX continues to reach new heights, the question remains: are you ready to join the liftoff? Whether through closed-end funds or the more accessible XOVR ETF, there are opportunities for retail investors to participate in this exciting journey. But with the stock priced at a premium and fees to consider, it's important to carefully weigh the risks and rewards before blasting off.
SpaceX is shaping the future of space exploration—and with it, the future of investment opportunities. Are you ready to get on board?
PrnewswirePR Newswire: press release distribution, targeting, monitoring and marketingnews-releases/ershares-crossover-etf-xovr-announces-spacex-as-its-top-holding-302321228.Html?Tc=eml_cleartime
Past performance is no guarantee of future results. Please refer to the below disclosures: https://lnkd.In/e29X6rN
Additional Disclosure Note: The author has an affiliation with ERShares and XOVR. The intent of the article is to provide objective information, but as in all equity investments, investors should carefully review investment options with an experienced investment professional prior to making any investment decision. Past performance is no guide or guarantee to future performance.
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