“There were times when I thought he was off his rocker,” Mueller confesses. “When I first met him, he said, ‘How much do you think we can get the cost of an engine down, compared to what you were predicting they’d cost at TRW?’ I said, ‘Oh, probably a factor of three.’ He said, ‘We need a factor of 10.’ I thought, ‘That’s kind of crazy.’ But in the end, we’re closer to his number!
“There were times when I thought he was off his rocker,” Mueller confesses. “When I first met him, he said, ‘How much do you think we can get the cost of an engine down, compared to what you were predicting they’d cost at TRW?’ I said, ‘Oh, probably a factor of three.’ He said, ‘We need a factor of 10.’ I thought, ‘That’s kind of crazy.’ But in the end, we’re closer to his number!
https://www.airspacemag.com/space/is-spacex-changing-the-roc...
This is in response to the engine. Maybe they got the engine price 10x cheaper, but the other components not so much?