The National Labor Relations Board has dismissed its case against SpaceX, marking a significant legal victory for Elon Musk's aerospace company. The labor board cited jurisdictional issues, claiming SpaceX engineers fall under the National Mediation Board's authority rather than the NLRB's, according to a letter obtained by Bloomberg News.

This decision ends a years-long legal battle that began when the NLRB accused SpaceX of unlawfully terminating eight engineers who had signed an open letter criticizing Musk's leadership. The dismissal comes amid broader challenges to the NLRB's authority, with a federal appeals court recently ruling that the agency's structure is likely unconstitutional and blocking it from pursuing cases against SpaceX and other companies.

The jurisdictional shift matters because workers under NLRB oversight have broader collective action rights compared to those under NMB jurisdiction. The NMB primarily oversees railroad and airline companies like American Airlines, while the NLRB covers most other private sector employers including manufacturers like Boeing. This ruling could limit labor protections for SpaceX employees Quick Fact: The NLRB had accused SpaceX of firing eight engineers over an open letter criticizing Musk.