Living in Florida offers me a lot of opportunities for adventure.
There’s fishing and boating all year. There’s the Everglades. There are the beaches and theme parks… the list goes on.
And one of our family’s favorite weekend adventures is taking a trip across the state to watch rocket launches at Cape Canaveral.
You should see my kids’ faces light up as the flames and smoke start billowing…
Why am I bringing this up today?
Musk Is Going to Mars
Commercialized space travel might be closer (and cheaper) than we thought.
Last week the internet’s favorite entrepreneur (or pariah), Elon Musk, had a chance to sit down with top brass from the United States Air Force’s acquisitions department.
There he discussed his plans for Starship, SpaceX’s first ship planned for manned flight.
The meeting was part of the Air Force’s Space Pitch Day, where companies gather to pitch their ideas to the USAF in hopes of getting a fat government contract.
We all know how much Musk loves publicity, be it good or bad. And a conversation with the Air Force about space travel plans is right up his alley.
So Musk put the goofy Twitter memes aside for a bit and got to business talking with Lt. Gen. John Thompson.
Here’s the Grand Plan
Currently, it costs almost $62 million to launch one of SpaceX’s Falcon 9 rockets.
Musk thinks Starship can get that cost down to just $2 million per mission. Better yet, according to SpaceX President Gwynne Shotwell, Starship might even be mostly operational in 2020, reports CNBC.
If what Elon says comes true, Starship has the potential to change how people go to space.
According to TechCrunch, the Starship will allow in-orbit refueling, increasing its operational range substantially. It will essentially be an airliner for space.
Of course, we won’t be able to book space flights on Expedia anytime soon. But the scientific and technological ramifications are massive.
Now, a Way to Play It
Freight and people could go back and forth from space hubs on the moon and Mars much quicker and cheaper than previously imagined. Musk’s Starship could make space travel and transport a reality for the semi-affluent human looking for a brand-new experience.
Efficient and easy (relatively speaking) space travel will also create an entire new world of opportunity for us as investors.
There will be plenty of pick-and-shovel plays available with companies creating the advanced computer systems used in these rockets.
And while Musk’s Starship ambitions are peaceful ambitions, I’m sure the Space Force camp will want a piece of the action.
After all, Elon was talking to the USAF, not UPS.
So here are the potential profit opportunities we’re looking at first as this new industry takes flight.
Consider defense contractors like Raytheon (NYSE: RTN), Northrop Grumman (NYSE: NOC) and Lockheed Martin (NYSE: LMT) to be prime players in the new space race.
After all, those companies are no strangers to advanced aeronautics and space flight.
Chipmakers will be a huge player in the new space race too, but we’ll cover those ideas in a future issue.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily