Tesla's Cheap Wage Tactics for Foreign Workers Exposed in US Lawsuit

Tesla’s tactic for paying employees lower wages has been exposed through a lawsuit filed against the electric car manufacturer in the United States.

Tesla allegedly selected foreign workers and discriminated against US citizens in order to pay lower wages to workers from developing countries. According to the lawsuit, Scott Taub, who leads the case, stated that Tesla did not recruit American employees for technical positions, citing a preference for foreign visa holders.

Tesla reportedly only sought candidates for technical positions who held H1-B visas. The H1-B visa programme is designed for highly educated foreign workers in industries such as technology.

The lawsuit further alleges that workforce reductions at Tesla were disproportionately targeted at US citizen employees. In 2024 alone, Tesla hired approximately 1,355 visa holders whilst laying off more than 6,000 domestic workers, the majority of whom were American citizens.

US District Judge Vince Chhabria in San Francisco acknowledged that the lawsuit presented substantial facts regarding Tesla’s recruitment practices. However, he noted that Taub provided limited evidence of direct discrimination.

Tesla has denied the allegations in court filings, though neither the company nor the plaintiff’s legal representatives immediately responded to requests for comment.