I interpret this as that SpaceX has a high margin between market prices and their internal costs, so they can safely reduce prices when needed while remaining profitable. The competitor of course should aim not to the current prices, but to SpaceX's costs to be able to compete on the market.

I probably over summarized. I think there’s still room to undercut or compete (particularly on specialty projects) until SpaceX hits 10x for sure, and maybe as high as 15x.

And even if there isn't, when SpaceX is booked out for years and you need a launch slot in 6 months, that's when having competition is valuable.

Always look for other ways to compete besides price. (not intended to be as preachy as it sounds :-)

Just curious, how did you calculate the 6.7x?

I found an article that declared pre-and post-SpaceX cost to orbit per kilogram and it was something like 18.5k versus 2.6k (numbers from memory).

Elon before the first Dragon worked was talking about reducing launch costs by a factor of ten.