Tesla, the renowned electric vehicle maker led by Elon Musk, is once again in the spotlight, not for its technological breakthroughs or sales records, but for a lawsuit that could seriously impact its public image and hiring practices.
On Friday, a proposed class action was filed in federal court in San Francisco, accusing the Texas-based company of systematically favoring visa holders over US citizens in order to cut labor costs. According to the complaint, Tesla has extensively relied on H-1B visas, designed for highly skilled workers, to fill internal roles.
In 2024 alone, the company reportedly hired around 1,355 visa holders while laying off more than 6,000 employees nationwide. Most of those let go, the plaintiffs argue, were US citizens.
The lawsuit was initiated by Scott Taub, a software engineer, and Sofia Brander, an HR specialist. Both claim they were disadvantaged precisely because they did not require employment sponsorship. Taub stated that one of the positions he applied for was labeled as “H1B only,” while Brander said she was never invited to interviews for internal roles despite having previously worked for Tesla as a contractor.
The filing argues that Tesla’s preference stems from the fact that visa holders can be paid less than American workers for the same roles, a practice referred to as “wage theft”. If proven, the allegations could intensify debates over immigration policies and the role of major tech firms in the US labor market.
Interestingly, the lawsuit also cites a December 27, 2024, post by Elon Musk on X, where he highlighted the crucial role the H-1B program played not only in his career but also in the success of Tesla, SpaceX, and many other companies.
Tesla has not yet issued an official response. The plaintiffs’ attorneys are seeking damages for all US citizens who they argue were disadvantaged in hiring or layoffs by the company.
