Finance news
Finance news Topline
SpaceX has accused a California agency of political bias against its chief executive Elon Musk after it rejected a request from the company to increase the number of launches in the state, according to a lawsuit filed Tuesday, which included comments from officials who criticized Musk’s involvement in the presidential race and his claims on social media.
The astronautics firm alleges California officials were motivated by “naked political … [+] discrimination.”
Finance news Key Facts
The lawsuit—filed Tuesday in Los Angeles federal court—alleges “naked political discrimination” against Musk by the California Coastal Commission, which voted last week to reject a request from the Air Force to increase the number of annual SpaceX launches from Vandenberg Space Force Base from 36 to 50.
SpaceX claims the commission exceeded its power by punishing a “company for the political views and statements of its largest shareholder and CEO.”
Commissioners raised concerns about Musk before its vote, including how Musk has “aggressively injected himself” into the presidential race, his spreading of conspiracy theories on social media and “alarming reporting” about employee injuries and a “toxic” culture at SpaceX, the Los Angeles Times and Bloomberg reported.
Col. Bryan Titus, the operations vice commander at the base, previously argued SpaceX launches should be considered federal activities because they benefit the military, though commissioners have disputed this claim by arguing SpaceX’s launches are primarily used to launch Starlink satellites, according to the Times.
SpaceX is requesting a court order declaring the commission has no authority over the launch program.
The California Coastal Commission did not immediately respond to a request for comment.
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Finance news Crucial Quote
Commissioner Gretchen Newsom reportedly said during the agency’s meeting: “Elon Musk is hopping about the country, spewing and tweeting political falsehoods and attacking [the Federal Emergency Management Agency]
while claiming his desire to help the hurricane victims with free Starlink access to the internet.”
Finance news What To Watch For
The federal government could proceed with the launches despite the commission’s vote, as the commission is appointed by California’s legislators, according to Bloomberg. The Air Force said in a statement to Forbes it would be “premature to speculate” whether that would happen.
Finance news Key Background
The California Coastal Commission, a 12-member agency that oversees the use of land and water in the state, has debated about increasing SpaceX launches multiple times this year. SpaceX, which has launched its Falcon 9 rockets from the Lompoc, California, base since 2013, requested the agency to increase the number of annual launches from 12 to 36 in April. Residents near the base expressed concerns about the proposed increase to the commission, saying they feared the after-effects of launches like increased noise and their homes shaking, according to the Times.
Finance news Forbes Valuation
Musk is the richest person in the world with a fortune valued at $247 billion, according to our latest estimates. Musk endorsed former President Donald Trump for the 2024 election and has said he would accept a position in his administration if elected. He has also drawn criticism for spreading baseless conspiracy theories on social media.
