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Nine years later, SpaceX employs 1,500 people and occupies a half half-million- square-foot foot facility in Hawthorne, California, that used to produce fuselage sections for Boeing 747s. Today it is filled with rocket parts, including stages and engines for its Falcon 9 boosters, which can place up to 23,000 pounds of payload in low Earth orbit. Off to one side sits a slightly charred, cone cone-shaped Dragon capsule that a year r ago became the first commercial spacecraft to be launched into orbit and recovered. Sometime next year, SpaceX plans to launch the first of 12 Dragons to the International Space Station, each hauling six tons of cargo, under a $1.6 billion resupply contract act with NASA. More than two dozen commercial launches are also booked. And by 2015, the piloted version of Dragon is expected to be ready to pick up where the space shuttle left off, carrying astronauts to and from the orbiting outpost. All very impressive. ve. But what really sets SpaceX apart, and has made it a magnet for controversy, are its prices: As advertised on the company’s Web site, a Falcon 9 launch costs an average of $57 million, which works out to less than $2,500 per pound to orbit. That’s significantly ificantly less than what other U.S. launch companies typically charge, and even the manufacturer of China’s low low- cost Long March rocket (which the U.S. has banned importing) says it cannot beat SpaceX’s pricing. By 2014, the company’s next rocket, the Falcon Falco Heavy, aims to lower the cost to $1,000 per pound. And Musk insists that’s just the beginning. “Our performance will increase and our prices will decline over time,” he writes on SpaceX’s Web site, “as is the case with every other technology.” Like the Chinese, hinese, many observers in this country are wondering how SpaceX can deliver what it promises. After nearly a decade of struggling to reach this point, Musk isn’t about to reveal the finer details of how he and his privately held company have created the Falcon lcon and Dragon. They don’t even file patents, Musk says, because “we try not to provide a recipe by which China can copy us and we find our inventions coming right back at us.” But he talks freely about SpaceX’s approach to rocket design, which stems from one core principle: Simplicity enables both reliability and low cost. Think of cars, Musk says. “Is a Ferrari more reliable than a Toyota Corolla or a Honda Civic?” Simplifying something as complex as a rocket is no easy task. And historically, most rocket makers have made their top priority performance, not cost. The space shuttle’s main engines were the highest- highest performance rockets ever flown, but they helped make the e shuttle what Musk calls “a Ferrari to the nth power” that required thousands of worker-hours worker to refurbish between flights. The Atlas and Delta rockets purchased under the government’s Evolved Expendable Launch Vehicle program serve NASA and Department of Defense customers whose main concern is reliability. “What the EELV program does is launch national reconnaissance satellites that cost billions 31