The cold, hard math of Tesla’s immigration war

Ippolito Visconti Author Automotive
A federal judge refuses to toss a lawsuit accusing Tesla of ditching American workers for H-1B visa holders.
tesla plant

Watching Elon Musk navigate the intersection of “America First” politics and globalist hiring practices is like watching a Cybertruck try to navigate a narrow Italian alley. Loud, awkward, and someone is bound to get hurt. This time, the collision is happening in a San Francisco federal court. Judge Vince Chhabria just refused to toss out a lawsuit that smells a lot like systematic discrimination. The accusation? Tesla is allegedly snubbing American citizens in favor of H-1B visa holders, who are basically a captive workforce ready to grind for the king’s glory.

The lead plaintiff, a software engineer who apparently wasn’t “foreign” enough for Tesla’s taste, claims a recruiter told him point-blank that a role was “only H-1B”. The numbers certainly paint a grim picture. In 2024, while Tesla was showing the door to over 6,000 domestic workers, they were busy rolling out the red carpet for 1,355 visa holders.

tesla plant

Now, Tesla calls these claims “absurd”, and the judge himself admits he’s a bit skeptical about the case’s ultimate success, but he’s still letting the discovery phase proceed. We’re probably about to get a peek under the hood of Tesla’s HR department, and it probably isn’t pretty.

Musk has spent the last year cozying up to an administration that views the H-1B program with no enthusiasm. President Trump has already slapped a $100,000 tax on new H-1B petitions for 2025 and scrapped the visa lottery for a “pay-to-play” system. Musk, meanwhile, says he’s going to “war” to protect these visas because he needs the brains to beat China in the AI race. It’s a classic Musk paradox. Waving the flag on X while begging for more foreign engineers to keep the lights on in Austin and Fremont.

tesla plant

But if you think this is just about Tesla saving a few bucks on “cheap” labor, the data might ruin your narrative. H-1B workers at Tesla are pulling an average of $152,000 a year. Add that to the new $100,000 “Trump tax”, and these engineers are becoming the most expensive assets on the balance sheet.

So, is it discrimination or just a desperate hunt for talent that American schools aren’t churning out fast enough? Either way, if this class action sticks, it won’t just be Tesla feeling the heat; the entire tech and auto industry will have to explain why their “diverse” workforce seems to have a very specific, visa-stamped profile.