The News Bee

Elon Musk aims to disrupt another business

Elon Musk aims to disrupt another business

Elon Musk has already disrupted the electric car business with Tesla (TSLA). He’s challenging utilities with solar and batteries. Now he’s looking to take on a business that’s even tougher to get into : military launches.elon-musk-tesla

Southern Calif.-based SpaceX, famous for its low-cost Falcon rockets, got the nod to be the second company certified for military space launches, the US Air Force announced Tuesday, as reported by Defense News. Musk’s SpaceX space exploration business is potentially a big problem for Lockheed Martin and Boeing – by threatening to lower the cost of military launches.

The military launch certification is a potential direct hit against the essential monopoly Lockheed Martin and Boeing have had in military space launches through their United Launch Alliance (ULA) joint venture. SpaceX is aiming to disrupt this relationship by giving military agencies access to its low cost rocket technology for launching national security payloads. SpaceX could square off with ULA as soon as June when there’s a bidding process for a proposal for the GPS III launch, Defense News says. Musk is also the entrepreneur behind electric car company, Tesla and solar installer SolarCity.

So far, investors don’t seem too bothered by Musk’s SpaceX. Shares of Boeing Wednesday are flat trading up 4 cents to $142.84. Lockheed Martin shares are up 35 cents, or 0.2%, to $190.87. SpaceX is privately held – so doesn’t have a stock price. The largest investors in SpaceX include Fidelity Investments, Google Ventures and venture capitalist Draper Fisher Jurvetson.