I didn't think he actually said it'd be cheaper. If it's not, there will be room for a competitor.
>> There's also the business case for reducing the number of products they are supporting.
That was my take on what he said, and if there's a case for BFR then perhaps it makes sense.
>> Right now, there are not enough customers in the world to justify an investment to replace all Falcons with BFRs. They have an answer to that (however flawed), and that answer is simply "Mars".
Nice thing about a private company. Elon doesn't really have to answer to anyone. Well, actually he's got enough investors that maybe he does, but they all understand his goals are bigger than just making money. BFR will be the ferry to mars and that opens a door. Nobody know what lies behind that door and I think his investors want to know as much as anyone.