Elon Musk’s SpaceX Reportedly Wins Reprieve As NLRB Drops Key Case

• The National Labor Relations Board challenged SpaceX's severance and arbitration agreements with former employees in 2024. 
• SpaceX responded by suing the agency, mirroring a similar legal tactic it used in a separate California case.
• The NLRB, along with withdrawing the suit, has also reconsidered its California filing. 

The National Labor Relations Board (NLRB) has reportedly stepped back from a legal complaint targeting SpaceX, removing a wider courtroom clash between the federal labor agency and Elon Musk’s rocket company. 

According to a Bloomberg report, court filings dated December 18 show lawyers for both sides asked a federal judge in Texas to throw out one of SpaceX’s lawsuits, after the labor board decided to abandon its enforcement action.

The Dispute

According to a CNBC report, in 2024, the NLRB challenged SpaceX's severance and arbitration agreements with former employees. 

The complaint, filed by the NLRB’s Seattle office, claimed that the agreements unlawfully restricted workers’ rights and included clauses that limited participation in potential claims against the company. It specifically pointed to confidentiality and non-disparagement clauses in SpaceX’s severance packages. 

SpaceX responded by suing the agency.

At the time of writing, retail sentiment around SpaceX on Stocktwits remained in ‘neutral’ territory amid ‘low’ message volume levels. 

Case Withdrawal

The move eases immediate regulatory pressure on the aerospace firm. The agency’s change in tone follows President Donald Trump’s appointment of William Cowen as acting general counsel earlier this year. Lawmakers have since confirmed Crystal Carey as permanent general counsel. She previously worked at a firm representing major corporations, including SpaceX and Tesla, the report stated. 

The NLRB has also been reconsidering its California complaint, telling a court in April that it is checking whether it even has the authority to handle the case.

The Trump administration is reportedly considering transferring almost 800 acres of land in a federal wildlife refuge in Texas to SpaceX. The legal respite comes at a time when SpaceX is said to be moving forward with plans for an initial public offering (IPO) that could raise more than $30 billion, with a valuation of about $1.5 trillion. 

Also See: Why Is SLS Stock Drawing Significant Investor Attention Today?

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