Elon Musk gets an apology from California regulators as a SpaceX lawsuit is settled

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LOS ANGELES (AP) — California regulators apologized to SpaceX CEO Elon Musk this week as they settled a lawsuit that claimed a state agency showed political bias against the rocket company and its chief executive.

As part of the settlement, the California Coastal Commission acknowledged its members made “improper” statements about Musk's political beliefs at a 2024 hearing on SpaceX’s Falcon 9 launch program.

“The commission agrees that it may not consider irrelevant factors in performing its function and specifically agrees that it will not take into account the perceived political beliefs, political speech or labor practices of SpaceX or its officers in considering any regulatory action concerning SpaceX,” the commission said in federal court documents filed Tuesday.

SpaceX had sued the commission over its opposition to expanding the launch schedule for Falcon 9 rockets from the Vandenberg Space Force Base on the Southern California coast near Santa Barbara.

The company's lawsuit accused the coastal commission of engaging in political discrimination by refusing to sign off on a U.S. Air Force proposal to boost the number of launches at the busy base owned by the federal government.

The lawsuit alleged the commissioners voted against SpaceX because of their dislike of Musk’s outspoken political views, violating constitutional rights to free speech and due process.

According to the settlement, the case will be permanently dismissed while both parties agree that the deal doesn’t constitute an admission “of any liability or unlawful conduct.”

The commission also agreed it wouldn’t require a coastal development permit pertaining to SpaceX’s launch program in the state.

Representatives for SpaceX didn’t immediately respond to a request for comment on the settlement.

The coastal commission acknowledged in a statement Wednesday that it had apologized for “irrelevant” statements made by its members. The commission said it continues to have serious concerns about the impacts to coastal resources from increased rocket launches at Vandenberg.

“These impacts include restrictions on public coastal access, harm to sensitive species and coastal habitat, as well as the frequency and intensity of sonic booms,” the statement said. "Federal law requires the federal government to provide information to and coordinate with the Coastal Commission on such issues. The federal government has yet to provide sufficient information to the Coastal Commission about these activities and their impact on the California coast.

The settlement came while Musk took the stand this week amid a separate court battle with OpenAI cofounder Sam Altman that could reshape the future development of artificial intelligence.