Officials refuse to subsidize SpaceX due to Musk threats about soon leaving California
Elon Musk and his company SpaceX received a waiver from California to receive subsidies in the amount of $ 655 million. According to officials, the CEO’s regular threats that he plans to move his business outside the state cannot be considered a profitable investment.
The beginnings of the conflict between the billionaire and the California authorities began with the fact that Elon Musk refuses to resume production at Tesla's plants even after the end of the pandemic.
“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, according to Reuters.
According to officials, both companies do not deserve such money due to the fact that the employees of these companies do not have unions. Earlier, these subsidies were planned for training programs for 1200 employees for Starship and Starlink, but the CEO did not receive explanations and plans on the seriousness of intentions.
Amid the disagreements of the California authorities with Elon Mask, officials of Texas, Nevada, Georgia, Utah and Oklahoma proposed more favorable conditions for cooperation and the construction of a plant on their territory.