Jun 12, 2024 - Business

Musk, SpaceX hit with sexual harassment lawsuit from 8 ex-employees

Elon Musk speaking in Beverly Hills, California, in May 2024.

Elon Musk speaking in Beverly Hills, California, in May 2024. Photo: Apu Gomes/Getty Images

SpaceX and CEO Elon Musk were hit on Wednesday with a lawsuit from eight former employees, who alleged they were illegally fired for raising concerns about sexual harassment and discrimination against women at the company.

Why it matters: The lawsuit comes just a day after a Wall Street Journal report alleged Musk has had sexual relationships with at least two SpaceX employees and has made sexually inappropriate comments toward other women at the company.

  • The women Musk allegedly had sexual relationships with included a former intern he later hired onto his executive team, according to the Journal's report.
  • After another alleged sexual relationship with an employee fell apart, the woman received "recriminations over text and email" as she left the company. She also signed an agreement prohibiting her from discussing her work for Musk.
  • Musk allegedly asked another woman employee to have his babies during exit negotiations in 2013.

Context: The suit stems from firings in 2022 after some employees helped write an open letter criticizing Musk's behavior in public and on social media.

  • The employees said Musk was a "frequent source of distraction and embarrassment" for them and a threat to the company's reputation and urged company executives to publicly condemn Musk's actions.
  • The same former employees are pursuing a National Labor Relations Board complaint against the company.

What's inside: In the lawsuit the former employees — four men and four women — alleged they were illegally fired after helping write the open letter to challenge "unlawful conduct" within the company.

  • The conduct highlighted in the suit included Musk allegedly "treating women as sexual objects to be evaluated on their bra size, bombarding the workplace with lewd sexual banter, and offering the reprise to those who challenge the 'Animal House' environment that if they don't like it they can seek employment elsewhere."

What they're saying: Paige Holland-Thielen, one of the plaintiffs, said in a statement that filing the lawsuit "marks an important milestone in our quest for justice," adding that she hopes it encourages SpaceX employees to keep "fighting for a better workplace."

  • Anne Shaver, an attorney with Lieff Cabraser Heimann & Bernstein representing the plaintiffs, said company management "knowingly permitted and fostered" a work culture "rife" with sexual harassment.
  • "To have been terminated for protesting SpaceX's utter failure to take basic measures to prevent sexual harassment is patently retaliatory, wrong, and actionable," Shaver said.

SpaceX did not immediately respond to Axios' request for comment.

  • Musk previously denied a sexual harassment complaint from a former employee in 2021, who said she was paid $250,000 by the company after he exposed himself to her and offered to buy her a horse in exchange for an erotic massage.
  • Leaders within the company also publicly defended Musk at the time.

Go deeper: Elon Musk withdraws lawsuit against OpenAI and CEO Sam Altman

Read the lawsuit:

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