Current Events > California officials reject subsidies for SpaceX over spat with Musk/Tesla

(+) Yeah! (+)

https://www.reuters.com/article/us-tesla-california-spacex-idUSKBN22R389

A California state panel on Friday rejected a request from Elon Musks SpaceX for $655,500 in state job and training funds, citing the chief executives 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 Californias Employment Training Panel voted to reject the proposal and two voted for it, with one member absent, after discussing Musks tweets on Teslas reopening and media reports of layoffs at SpaceXs 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 weve 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 Fridays 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.

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no company should receive subsidies tbqh

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california will be sorry for snubbing elon when he moves to texas
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Why don't they just ask their billionaire daddy for that 650k?

Good.
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Fair, next. Fuck Musk.

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CommonStar posted...

Why don't they just ask their billionaire daddy for that 650k?

Because he has to borrow against his equity to get cash.

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This is like when sports teams threaten to move unless the city gives them more $$$.

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I remember when Cali had a lot of car manufacturers... Now it's just Elon and he wants out

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politics...go figure.

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Why should any multi-billion dollar company owned by ultra-rich executives get a penny from the government? The only excuse I can reasonably see is maybe energy startups, but most alternate forms of energy have begun rapid expansion by now anyway.

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Zero_Destroyer posted...

Why should any multi-billion dollar company owned by ultra-rich executives get a penny from the government? The only excuse I can reasonably see is maybe energy startups, but most alternate forms of energy have begun rapid expansion by now anyway.

You don't get rich by throwing your money at things willy-nilly. You have to squeeze every other source and alternative for all they're worth before digging into your own pockets.

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Zero_Destroyer posted...

Why should any multi-billion dollar company owned by ultra-rich executives get a penny from the government?

Because said company may move to another state that is willing to pay?

I mean, ask Alameda and Palo Alto city government on why they were on Tesla's side for reopening (Hint: it has to do with jobs and the state economy)