section_path: History/2010–2012: Falcon 9, Dragon, and NASA contracts
section_name: 2010–2012: Falcon 9, Dragon, and NASA contracts
paragraph_text: 2010–2012: Falcon 9, Dragon, and NASA contracts
  
  SpaceX originally intended to follow its light Falcon 1 launch vehicle with an intermediate capacity vehicle, the Falcon 5. The company instead decided in 2005 to proceed with the development of the Falcon 9, a reusable heavier lift vehicle. Development of the Falcon 9 was accelerated by NASA, which committed to purchasing several commercial flights if specific capabilities were demonstrated. This started with seed money from the Commercial Orbital Transportation Services (COTS) program in 2006. The overall contract award was $278 million to provide development funding for the Dragon spacecraft, Falcon 9, and demonstration launches of Falcon 9 with Dragon. As part of this contract, the Falcon 9 launched for the first time in June 2010 with the Dragon Spacecraft Qualification Unit, using a mockup of the Dragon spacecraft.
  
  The first operational Dragon spacecraft was launched in December 2010 aboard COTS Demo Flight 1, the Falcon 9's second flight, and safely returned to Earth after two orbits, completing all its mission objectives. By December 2010, the SpaceX production line was manufacturing one Falcon 9 and Dragon every three months.
  
  In April 2011, as part of its second-round Commercial Crew Development (CCDev) program, NASA issued a $75 million contract for SpaceX to develop an integrated launch escape system for Dragon in preparation for human-rating it as a crew transport vehicle to the ISS. NASA awarded SpaceX a fixed-price Space Act Agreement (SAA) to produce a detailed design of the crew transportation system in August 2012.
  
  In early 2012, approximately two-thirds of SpaceX stock was owned by Musk and his seventy million shares were then estimated to be worth $875 million on private markets, valuing SpaceX at $1.3 billion. In May 2012, with the Dragon C2+ launch, Dragon became the first commercial spacecraft to deliver cargo to the International Space Station. After the flight, the company private equity valuation nearly doubled to $2.4 billion or $20 /share. By that time, SpaceX had operated on total funding of approximately $1 billion over its first decade of operation. Of this, private equity provided approximately $200 million, with Musk investing approximately $100 million and other investors having put in about $100 million.
  
  SpaceX's active reusability test program began in late 2012 with testing low-altitude, low-speed aspects of the landing technology. The Falcon 9 prototypes performed vertical takeoffs and landings (VTOL). High-velocity, high-altitude tests of the booster atmospheric return technology began in late 2013.