Calif. Rejects SpaceX Subsidies After Tesla Threats

Elon Musk said he'd pull Tesla out of California, and the impacts of that threat are still playing out.

Elon Musk famously oversees several tech-forward businesses, and the outspoken executive recently saw his Tesla dealings interfere with the ongoing operations of SpaceX.

Last week, Musk threatened to vacate California, where Tesla is headquartered, over restrictions the state had placed on production during the pandemic.

He even went so far as to reopen Tesla’s Fremont plant in defiance of county orders before the two sides reached a resolution.

But Musk’s actions ultimately came back to haunt SpaceX.

On Friday, a panel voted to reject a request by SpaceX for $655,500 in state job and training funds.

The funds were intended to be used by SpaceX to train hundreds of employees for its Starlink satellite project and hire 300 more.

One board member said she “did not feel secure supporting” the proposal given Musk’s recent threats to leave the state of California.

And though Tesla is a different company, she added, “they have the same CEO.”


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