California State Panel Rejects SpaceX Funding Request Amid Musk Threats

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

In a surprising turn of events, a California state panel has rejected a request from Elon Musk’s SpaceX for $655,500 in state job and training funds. The decision was made in response to Musk’s recent threats to move Tesla, the electric carmaker that he also runs, out of the state.

The panel’s decision comes amidst a heated dispute between Musk and officials in Alameda County over his plans to resume production at the Tesla plant, which was halted due to the coronavirus pandemic. Musk’s tweets on Tesla’s reopening and reports of layoffs at SpaceX’s headquarters in Hawthorne, California were also cited as reasons for the rejection.

Gretchen Newsom, a panel member and political director of an IBEW electrical workers union local, expressed her concerns about Musk’s threats to leave California. “In my opinion, this proposal does not rise to the level for me to feel secure in supporting it,” she said. “SpaceX is a different company, but they have the same CEO.”

Despite being a relatively small amount of money, the funding 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 remains unclear whether SpaceX will move forward with its hiring plan following the rejection. The company did not immediately respond to requests for comment.

Since the public dispute between Tesla and Alameda County, several states including Texas, Nevada, Georgia, Utah, and Oklahoma have reached out to Musk in hopes of luring his businesses to their states. The future of SpaceX’s operations in California now hangs in the balance as Musk considers his options.

Joey Roulette, reporting for Reuters, contributed to this article.