California officials reject subsidies for Musk’s SpaceX over Tesla spat – might have something to do with opening in defiance of Covid orders

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

The snub comes as Musk has sparred with officials in Alameda County over his plans to resume production at the Tesla plant there, which was stopped because of the coronavirus.

Five members of California’s Employment Training Panel voted to reject the proposal and two voted for it, with one member absent, after discussing Musk’s tweets on Tesla’s reopening and media reports of layoffs at SpaceX’s Hawthorne, California headquarters in recent years.

“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 the political director of an IBEW electrical workers union local.

“SpaceX is a different company, but they have the same CEO,” said Newsom, who is not related to California Governor Gavin Newsom.

Though a small amount of money, the funding was opposed by organized labor groups. Tesla and SpaceX are both nonunion shops.

Source: California officials reject subsidies for Musk’s SpaceX over Tesla spat – Reuters