Left Menu
Development News Edition

California officials reject subsidies for Musk's SpaceX over Tesla spat

Reuters | California | Updated: 16-05-2020 03:19 IST | Created: 16-05-2020 02:27 IST
California officials reject subsidies for Musk's SpaceX over Tesla spat

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. The funding from the state employment development fund was supposed to help SpaceX train 900 employees for its Starlink satellite project and hire 300 to work on its Starship program. It was unclear whether SpaceX intends to move forward with its hiring plan after Friday's rejection.

SpaceX did not immediately respond to a request for comment. Since the disagreement between Tesla and Alameda County gained national attention, officials from such states as Texas, Nevada, Georgia, Utah and Oklahoma have pitched Musk about considering their state for existing operations or for a new factory the company has promised.


TRENDING

OPINION / BLOG / INTERVIEW

COVID-19 seems cooking biggest ever global scam

The increasing number of corruption cases on COVID-19 funds from throughout the world and involvement of high profile persons indicate that the countries cant ignore corruption in their pandemic response programs. This has generated the nee...

Health Management Information Systems lack holistic, integrated, and pandemic resilient character

Being a part of the United Nations system, the World Health Organization WHO deserves its share of rebuke for its alleged failure issue COVID-19 health emergency alerts on appropriate time. However, the pandemic has also exposed loopholes i...

Pride in the time of coronavirus: a welcome move online?

This year is different in many ways not least as celebrations are also taking place against the dramatic backdrop of a global health crisis and a resurgence in grassroots activism following the death of George Floyd in Minneapolis. ...

COVID-19: Weighing up the benefits and limitations of edtech platforms

Edtech companies shouldnt focus on merely pushing contents, but to provide an interactive, effective teaching and learning environment. ...

Videos

Latest News

Reuters Health News Summary

Following is a summary of current health news briefs. White House says economy roaring back, touts safe coronavirus re-openings as cases soarU.S. President Donald Trumps White House on Thursday rallied around the message that all was well b...

Kollu Raveendra arrested in connection with murder of YSRCP leader Moka Bhaskar Rao

Telugu Desam Party leader Kollu Raveendra on Friday has been arrested in connection with the murder of a YSR Congress Party leader Moka Bhaskar Rao in Machilipatnam on June 29. He was arrested after Raos wife alleged that TDP is behind the ...

Reuters People News Summary

Following is a summary of current people news briefs. Meghan felt unprotected by UK royal family while pregnant court papersMeghan, the Duchess of Sussex, felt unprotected by the British royal family while she was pregnant with her son Arch...

Reuters Science News Summary

Following is a summary of current science news briefs. Prehistoric ochre mining operation found in submerged Mexican cavesResearchers diving into dark submerged caves on Mexicos Yucatan Peninsula have found evidence of an ambitious mining o...

Give Feedback