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Elon Musk slams DOJ’s SpaceX lawsuit

U.S. AIR FORCE ACADEMY, Colo. -- Tesla Inc. Chief Executive Officer Elon Musk speaks with Lt. Gen. Richard Clark, Superintendent of the U.S. Air Force Academy, during the Ira C. Eaker Distinguished Speaker Presentation in the Academy's Arnold Hall on April 7, 2022 in Colorado Springs, Colo. (U.S. Air Force photo by Trevor cokley)

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Elon Musk shared his criticism of a lawsuit that the United States Department of Justice (DOJ) has filed against SpaceX, which alleged that the private space company “routinely discouraged asylees and refugees from applying and refused to hire or consider them, because of their citizenship status, in violation of the Immigration and Nationality Act (INA).” 

As per the DOJ’s complaint, SpaceX wrongly claimed that federal laws and regulations required the company to hire only US citizens and green card holders for its operations. The DOJ argued that asylums and refugees are legally permitted by the federal government to live and work in the country without expiration. Assistant Attorney General Kristen Clarke of the DOJ’s Civil Rights Division explained the DOJ’s case. 

“Our investigation found that SpaceX failed to fairly consider or hire asylees and refugees because of their citizenship status and imposed what amounted to a ban on their hire regardless of their qualification, in violation of federal law… Asylees and refugees have overcome many obstacles in their lives, and unlawful employment discrimination based on their citizenship status should not be one of them,” Clarke noted. 

Elon Musk, for his part, responded to the lawsuit on X, reiterating his previous point that SpaceX has been instructed in the past to only hire permanent residents of the United States. Musk’s statement seems justifiable considering the nature of SpaceX’s business, which involves the launch of sensitive machinery into space

“SpaceX was told repeatedly that hiring anyone who was not a permanent resident of the United States would violate international arms trafficking law, which would be a criminal offense. We couldn’t even hire Canadian citizens, despite Canada being part of NORAD! This is yet another case of weaponization of the DOJ for political purposes,” Musk wrote in a post on X, the social media platform formerly known as Twitter. 

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Musk also responded positively to posts criticizing the DOJ’s lawsuit. These included a post from Professor of Economics at George Mason U Alex Tabarrok, who observed that the DOJ is suing Musk and SpaceX for focusing their hiring on US citizens and permanent residents, when the DOJ itself is also restricting its applicants to US citizens only. In his response. Musk noted that the “DOJ needs to sue themselves!” and, in a follow-up post, the CEO noted that “the irony is too much.” 

In an interview with FOX Business‘ The Evening Edit, former DOJ civil rights attorney Roger Severino noted that the lawsuit against SpaceX is a “joke,” and seemingly a pointed attack at Musk himself. Severino’s interview can be viewed below. 

The DOJ’s complaint against SpaceX can be viewed below.

DOJ Spacex Complaint by Simon Alvarez on Scribd

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads-up. 

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla stands to gain from Ford’s decision to ditch large EVs

Tesla is perhaps the biggest beneficiary of Ford’s decision, especially as it will no longer have to deal with the sole pure EV pickup that outsold it from time to time: the F-150 Lightning.

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Credit: Tesla

Ford’s recent decision to abandon production of the all-electric Ford F-150 Lightning after the 2025 model year should yield some advantages for Tesla.

The Detroit-based automaker’s pivot away from large EVs and toward hybrids and extended-range EVs that come with a gas generator is proof that sustainable powertrains are easy on paper, but hard in reality.

Tesla is perhaps the biggest beneficiary of Ford’s decision, especially as it will no longer have to deal with the sole pure EV pickup that outsold it from time to time: the F-150 Lightning.

Here’s why:

Reduced Competition in the Electric Pickup Segment

The F-150 Lightning was the Tesla Cybertruck’s primary and direct rival in the full-size electric pickup market in the United States. With Ford’s decision to end pure EV production of its best-selling truck’s electric version and shifting to hybrids/EREVs, the Cybertruck faces significantly less competition.

Credit: Tesla

This could drive more fleet and retail buyers toward the Cybertruck, especially those committed to fully electric vehicles without a gas generator backup.

Strengthened Market Leadership and Brand Perception in Pure EVs

Ford’s pullback from large EVs–citing unprofitability and lack of demand for EVs of that size–highlights the challenges legacy automakers face in scaling profitable battery-electric vehicles.

Tesla, as the established leader with efficient production and vertical integration, benefits from reinforced perception as the most viable and committed pure EV manufacturer.

Credit: Tesla

This can boost consumer confidence in Tesla’s long-term ecosystem over competitors retreating to hybrids. With Ford making this move, it is totally reasonable that some car buyers could be reluctant to buy from other legacy automakers.

Profitability is a key reason companies build cars; they’re businesses, and they’re there to make money.

However, Ford’s new strategy could plant a seed in the head of some who plan to buy from companies like General Motors, Stellantis, or others, who could have second thoughts. With this backtrack in EVs, other things, like less education on these specific vehicles to technicians, could make repairs more costly and tougher to schedule.

Potential Increases in Market Share for Large EVs

Interestingly, this could play right into the hands of Tesla fans who have been asking for the company to make a larger EV, specifically a full-size SUV.

Customers seeking large, high-capability electric trucks or SUVs could now look to Tesla for its Cybertruck or potentially a future vehicle release, which the company has hinted at on several occasions this year.

With Ford reallocating resources away from large pure EVs and taking a $19.5 billion charge, Tesla stands to capture a larger slice of the remaining demand in this segment without a major U.S. competitor aggressively pursuing it.

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Ford cancels all-electric F-150 Lightning, announces $19.5 billion in charges

“Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher returning areas, more trucks and van hybrids, extended range electric vehicles, affordable EVs, and entirely new opportunities like energy storage.”

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Credit: Ford Motor Co.

Ford is canceling the all-electric F-150 Lightning and also announced it would take a $19.5 billion charge as it aims to quickly restructure its strategy regarding electrification efforts, a massive blow for the Detroit-based company that was once one of the most gung-ho on transitioning to EVs.

The announcement comes as the writing on the wall seemed to get bolder and more identifiable. Ford was bleeding money in EVs and, although it had a lot of success with the all-electric Lightning, it is aiming to push its efforts elsewhere.

It will also restructure its entire strategy on EVs, and the Lightning is not the only vehicle getting the boot. The T3 pickup, a long-awaited vehicle that was developed in part of a skunkworks program, is also no longer in the company’s plans.

Instead of continuing on with its large EVs, it will now shift its focus to hybrids and “extended-range EVs,” which will have an onboard gasoline engine to increase traveling distance, according to the Wall Street Journal.

“Ford no longer plans to produce select larger electric vehicles where the business case has eroded due to lower-than-expected demand, high costs, and regulatory changes,” the company said in a statement.

While unfortunate, especially because the Lightning was a fantastic electric truck, Ford is ultimately a business, and a business needs to make money.

Ford has lost $13 billion on its EV business since 2023, and company executives are more than aware that they gave it plenty of time to flourish.

Andrew Frick, President of Ford, said:

“Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher returning areas, more trucks and van hybrids, extended range electric vehicles, affordable EVs, and entirely new opportunities like energy storage.”

CEO Jim Farley also commented on the decision:

“Instead of plowing billions into the future knowing these large EVs will never make money, we are pivoting.”

Farley also said that the company now knows enough about the U.S. market “where we have a lot more certainty in this second inning.”

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SpaceX shades airline for seeking contract with Amazon’s Starlink rival

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Credit: Richard Angle

SpaceX employees, including its CEO Elon Musk, shaded American Airlines on social media this past weekend due to the company’s reported talks with Amazon’s Starlink rival, Leo.

Starlink has been adopted by several airlines, including United Airlines, Qatar Airways, Hawaiian Airlines, WestJet, Air France, airBaltic, and others. It has gained notoriety as an extremely solid, dependable, and reliable option for airline travel, as traditional options frequently cause users to lose connection to the internet.

Many airlines have made the switch, while others continue to mull the options available to them. American Airlines is one of them.

A report from Bloomberg indicates the airline is thinking of going with a Starlink rival owned by Amazon, called Leo. It was previously referred to as Project Kuiper.

American CEO Robert Isom said (via Bloomberg):

“While there’s Starlink, there are other low-Earth-orbit satellite opportunities that we can look at. We’re making sure that American is going to have what our customers need.”

Isom also said American has been in touch with Amazon about installing Leo on its aircraft, but he would not reveal the status of any discussions with the company.

The report caught the attention of Michael Nicolls, the Vice President of Starlink Engineering at SpaceX, who said:

“Only fly on airlines with good connectivity… and only one source of good connectivity at the moment…”

CEO Elon Musk replied to Nicolls by stating that American Airlines risks losing “a lot of customers if their connectivity solution fails.”

There are over 8,000 Starlink satellites in orbit currently, offering internet coverage in over 150 countries and territories globally. SpaceX expands its array of satellites nearly every week with launches from California and Florida, aiming to offer internet access to everyone across the globe.

SpaceX successfully launches 100th Starlink mission of 2025

Currently, the company is focusing on expanding into new markets, such as Africa and Asia.

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