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> They’re far too vertically integrated. In what sense? I work with a lot of Aerospace, Transportion and Logistics companies and I've personally seen tens of h

by mbesto 7y ago

> They’re far too vertically integrated. In what sense? I work with a lot of Aerospace, Transportion and Logistics companies and I've personally seen tens of hundreds of companies that are suppliers for Boeing/Airbus. What do you think GE, United Technologies, Rolls Royce Aerospace, etc. all do?

ksec 7y ago
Yes, there are hundreds of other manufacturers and many moving parts, which reminded me of SpaceX. One of the reason SpaceX has been abled to save so much cost was that they made / design all the parts themselves, truly vertically integrated. And this has led to better design, lower cost, higher level of knowledge in every part of the system, and more innovation. I remember there were so regulation that forbid AirCraft manufactures to do that, what was the rationale behind it?
- mbesto 7y ago
  > they made / design all the parts themselves, truly vertically integrated Do you have a source for that? Even Tesla isn't really that vertically integrated (for example - its Gigafactory is a JV with Panasonic).
  - ksec 7y ago
    I thought the example of SpaceX was quit well known [1], and the reason why SpaceX Rocket in itself, excluding the cost reduction of reusable luncher were much lower. There were also numerous article and Interview from Elon Musk himself confirming that. [1] https://www.investopedia.com/news/how-spacex-reinvented-rocket-launch-industry/ https://www.investopedia.com/news/how-spacex-reinvented-rock...
    - mbesto 7y ago
      FTA > Because SpaceX is a private company, it has not divulged the secret to its pricing. ? > There were also numerous article and Interview from Elon Musk himself confirming that. Do you honestly believe everything Musk says? He has a history of embellishing the truth. I'm not saying SpaceX isn't vertically integrated, I just find claims surrounding anything Musk says dubious unless it's confirmed by 3rd party reporters.

by mbesto 7y ago

ksec 7y ago

Yes, there are hundreds of other manufacturers and many moving parts, which reminded me of SpaceX. One of the reason SpaceX has been abled to save so much cost was that they made / design all the parts themselves, truly vertically integrated. And this has led to better design, lower cost, higher level of knowledge in every part of the system, and more innovation. I remember there were so regulation that forbid AirCraft manufactures to do that, what was the rationale behind it?

mbesto 7y ago
> they made / design all the parts themselves, truly vertically integrated Do you have a source for that? Even Tesla isn't really that vertically integrated (for example - its Gigafactory is a JV with Panasonic).
- ksec 7y ago
  I thought the example of SpaceX was quit well known [1], and the reason why SpaceX Rocket in itself, excluding the cost reduction of reusable luncher were much lower. There were also numerous article and Interview from Elon Musk himself confirming that. [1] https://www.investopedia.com/news/how-spacex-reinvented-rocket-launch-industry/ https://www.investopedia.com/news/how-spacex-reinvented-rock...
  - mbesto 7y ago
    FTA > Because SpaceX is a private company, it has not divulged the secret to its pricing. ? > There were also numerous article and Interview from Elon Musk himself confirming that. Do you honestly believe everything Musk says? He has a history of embellishing the truth. I'm not saying SpaceX isn't vertically integrated, I just find claims surrounding anything Musk says dubious unless it's confirmed by 3rd party reporters.