

In 2006, NASA announced that the company was one of two selected to provide crew and cargo resupply demonstration contracts to the ISS under the COTS program. In 2005, SpaceX announced plans to pursue a human-rated commercial space program through the end of the decade, a program which would later become the Dragon spacecraft. The total development cost of Falcon 1 was approximately US$90 million to US$100 million. The Falcon 1 was an expendable two-stage-to-orbit small-lift launch vehicle. SpaceX developed its first orbital launch vehicle, the Falcon 1, with private funding. The first successful Falcon 1 launch in September 2008 2005–2009: Falcon 1 and first orbital launches Musk has stated that one of his goals with SpaceX is to decrease the cost and improve the reliability of access to space, ultimately by a factor of ten. Musk personally interviewed and approved all of SpaceX's early employees, even going so far as convincing Larry Page to transfer a Google employee from San Francisco to Los Angeles so that the employee's spouse, a potential SpaceX hire, would take the job. By November 2005, the company had 160 employees.

SpaceX was first headquartered in a warehouse in El Segundo, California. Mueller agreed to work for Musk, and thus SpaceX was born. Musk approached rocket engineer Tom Mueller (later SpaceX's CTO of propulsion), and invited him to become his business partner. In early 2002, Musk started to look for staff for his new space company, soon to be named SpaceX.
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By applying vertical integration, using cheap commercial off-the-shelf components when possible, and adopting the modular approach of modern software engineering, Musk believed SpaceX could significantly cut launch price.

On the flight home Musk realized that he could start a company that could build the affordable rockets he needed. Musk tried to purchase cheap and refurbished Dnepr rockets from Russia but returned empty-handed after failing to find rockets for an affordable price. In an attempt to regain public interest in space exploration and increase NASA's budget, Musk announced that the project would be "the farthest that life's ever traveled". In 2001, Elon Musk conceptualized Mars Oasis, a project to land a miniature experimental greenhouse and grow plants on Mars. See also: List of Falcon 9 and Falcon Heavy launches 2001–2004: Founding
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SpaceX has flown and reflown the Falcon 9 series of rockets over one hundred times. SpaceX's achievements include the first privately funded liquid-propellant rocket to reach orbit ( Falcon 1 in 2008), the first private company to successfully launch, orbit, and recover a spacecraft ( Dragon in 2010), the first private company to send a spacecraft to the International Space Station (Dragon in 2012), the first vertical take-off and vertical propulsive landing for an orbital rocket (Falcon 9 in 2015), the first reuse of an orbital rocket (Falcon 9 in 2017), and the first private company to send astronauts to orbit and to the International Space Station ( SpaceX Crew Dragon Demo-2 in 2020). SpaceX manufactures the Falcon 9 and Falcon Heavy launch vehicles, several rocket engines, Dragon cargo, crew spacecraft and Starlink communications satellites. SpaceX was founded in 2002 by Elon Musk with the goal of reducing space transportation costs to enable the colonization of Mars. ( doing business as SpaceX) is an American aerospace manufacturer, space transportation services and communications corporation headquartered in Hawthorne, California.
