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Comment by throwaway2037

10 hours ago

I will pick an odd example. I was shocked to learn that SpaceX manufactures its ground satellite dishes (that customers need to buy) in Texas. They make more than five million units per year, and are looking to double that number. I am surprised that they did not outsource it to China. Maybe they are concerned about intellectual property theft. Still, that must be a hefty "tax" to pay to manuf in US instead of China.

A common theme between Tesla and SpaceX is obsessive vertical integration. SpaceX is building liquid oxygen (not sure about methane) production facilities at Boca Chica. That way they can make their own and not have to pay for the margin. As for Starlink, they must have found a way to do it better or cheaper or both. On a tangent, the manufacturing expertise in both companies is as impressive as their end products.