Elon Musk's SpaceX Charged with Illegally Firing Employees that Were Critical of the Billionaire

By Jace Dela Cruz

Jan 05, 2024 12:20 AM EST

Elon Musk's SpaceX is facing legal challenges as the U.S. National Labor Relations Board (NLRB) has complained to the company.

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NEW YORK, NEW YORK - NOVEMBER 29: NYT Columnist Andrew Ross Sorkin and C.E.O. of Tesla, Chief Engineer of SpaceX and C.T.O. of X Elon Musk speak during the New York Times annual DealBook summit on November 29, 2023 in New York City.

SpaceX's Alleged Illegal Termination

The complaint alleges that SpaceX unlawfully terminated eight employees who had authored an open letter expressing criticism of Elon Musk and raising concerns about the workplace environment, including allegations of selective tolerance of sexual harassment.

According to the NLRB complaint obtained by CNBC, the eight SpaceX employees were allegedly "engaged in concerted activities with other employees for the purposes of mutual aid or protection by drafting and distributing an open letter."

The letter outlined various workplace concerns and criticized Musk's public behavior, characterizing it as a "frequent source of distraction and embarrassment."

In the open letter, the employees expressed discontent with Musk's conduct in the public sphere, citing his divisive social media posts and allegations of sexual misconduct that contradicted SpaceX's stated policies of "no assholes" and "zero tolerance."

Sexual Harassment Allegation

The internal circulation of the letter within SpaceX occurred in response to a Business Insider report alleging that Elon Musk had engaged in inappropriate behavior, including exposing himself to a flight attendant on a company jet in 2016.

The report further claimed that SpaceX settled an alleged sexual harassment claim related to this incident for $250,000 in 2018.

Despite these allegations, Elon Musk has consistently refuted any accusations of sexual misconduct, dismissing them as "wild accusations." In the aftermath of the Business Insider report, Gwynne Shotwell, SpaceX's COO, and President, publicly came to Musk's defense, countering the allegations of sexual harassment.