The proposed class action, filed in federal court, claims Tesla’s “systematic preference” for hiring foreign employees violates U.S. civil rights law. The lawsuit further alleges that American citizens are being fired at higher rates than their visa-holding counterparts.
According to the complaint, Tesla relied heavily on H-1B visa workers in 2024. The figures are startling — about 1,355 visa holders were hired while more than 6,000 domestic employees, “the vast majority” believed to be U.S. citizens, were laid off during the same period.
The lawsuit paints a picture of a company deliberately cutting costs by replacing citizens with cheaper labor, igniting a debate about whether Musk’s empire is undermining U.S. workers in favor of foreign talent.
Tesla, headquartered in Austin, Texas, has not yet issued any comment on the allegations. But the silence has only fueled speculation and criticism from labor rights groups.
Reuters reveals the lawsuit was brought by software engineer Scott Taub and human resources specialist Sofia Brander, who said Tesla refused to hire them after learning they would not need sponsorship for employment, an indication they were U.S. citizens.
Taub said he was dissuaded from seeking one job after being told it was for "H1B only," and not invited to interview for a second job. Brander said Tesla wouldn t interview her for two jobs though she had twice been a contract employee.
"While visa workers make up just a fraction of the United States labor market, Tesla prefers to hire these candidates over U.S. citizens, as it can pay visa-dependent employees less than American employees performing the same work, a practice in the industry known as wage theft, " the complaint said.
Friday s complaint quoted a December 27, 2024, post on X by Musk, a naturalized U.S. citizen who was born and raised in South Africa and has held an H-1B visa.
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"The reason I m in America along with so many critical people who built SpaceX, Tesla and hundreds of other companies that made America strong is because of H1B," Musk wrote.
It is unclear how the plaintiffs plan to show Tesla s alleged systemic discrimination in hirings and firings.
Daniel Kotchen, a lawyer for the plaintiffs, declined additional comment.
The lawsuit seeks damages for all U.S. citizens who applied for Tesla jobs in the United States and were not hired, or worked for Tesla there and were fired.
The case is Taub et al v Tesla Inc, U.S. District Court, Northern District of California, No. 25-07785.
