California State Panel Rejects SpaceX’s Request for Job and Training Funds

California Panel Rejects SpaceX’s Request for State Funds Amid Musk’s Threats to Leave State

A California state panel has rejected a request from Elon Musk’s SpaceX for $655,500 in state job and training funds, citing the CEO’s recent threats to move Tesla, the electric carmaker that he also runs, out of the state.

The decision comes as Musk has been at odds with officials in Alameda County over his plans to resume production at the Tesla plant, which was halted due to the coronavirus pandemic.

Five members of California’s Employment Training Panel voted against the proposal, with two in favor and one absent, after discussing Musk’s tweets on Tesla’s reopening and reports of layoffs at SpaceX’s headquarters in Hawthorne, California.

“In my opinion, given the recent threats of the CEO to leave the state of California, and everything else we’ve discussed today, this proposal does not rise to the level for me to feel secure in supporting it,” said Gretchen Newsom, a panel member and political director of an IBEW electrical workers union local.

Newsom noted that while SpaceX is a different company, they share the same CEO as Tesla. The funding, though a small amount, was opposed by organized labor groups as both Tesla and SpaceX are nonunion shops.

The funds were intended to help SpaceX train 900 employees for its Starlink satellite project and hire 300 for its Starship program. It is unclear if SpaceX will proceed with its hiring plan following the rejection.

Since the dispute between Tesla and Alameda County gained national attention, officials from states like Texas, Nevada, Georgia, Utah, and Oklahoma have reached out to Musk to consider relocating operations to their states.

SpaceX did not immediately respond to a request for comment on the panel’s decision.

The rejection of state funds adds to the ongoing tensions between Musk and California officials, raising questions about the future of SpaceX’s operations in the state.