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No. Facebook could have taken the risk of trying to develop a space program, with a potential cost less than the price for Instagram.

Before it began, there was no guarantee that SpaceX would be successful, or that it would only cost $800 million in expenditures. And on the flip side, I expect the current value of SpaceX is higher than $1 billion.

Extreme example of how risk distorts price: if I buy a lottery ticket for $1 and win $1 million, does that mean that some guy who bought a soda for the same money could have done the same instead of buying the soda? Was the money spent on the soda wasted?

Elon took a risk, and appears to have won quite a position.



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