In the first place I think when 1207 refers to the next rocket he isn't referring to the next Falcon 1, but the next rocket in the series of Falcon rockets.<br /><br />Next, the 6.5 million will not even come close to covering the development costs of the Falcon 1, it will take many such launches, assuming that spacex is going to make a reasonable profit on each launch, and further assuming that their will be no problems with the Falcon 1. These are very big assumptions in this industry!<br /><br />Now, what Musk is talking about is a rocket comparable to the EELV Heavies of Delta IV or Atlas V at the very least (I see where he has decided to skip the Delta II sized Falcon 5) even talking about matching the NASA design for a SHLV to place 100 tons into LEO. <br /><br />Let us now examine just the EELV program in itself! This program, which was NOT a NASA program for the information of some on these boards who seem to think that it was, it was an Air Force military program. The venerable and great Titan series of Heavy rockets had for some 25 years or more been the mainstay of the military when it came to placing very heavy spy satellite systems into GOE orbit. But it was almost, if not actually as expensive per pound to LEO as the STS (shuttle) system, as some $10,000 per pound to LEO was the cost of both the STS and Titan systems. What the Air Force wanted from the traditional contractors of Boeing and LM was a program to use basically current technology (no experimental and possibly very expensive development) and using more production like methods similar to aircraft production instead of the then current one of a kind type of production, bring the cost of a pound to LEO down to some $2,500 per pound to LEO. I believe that both companies (by the way the contracts were NOT cost plus, so both companies had to really hustle on these contracts to make any profit at all!) eventually will achieve this goal as long as the rate of manufacturing of the Delta IV and the A