• Source:JND
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Tesla, the electric automaker founded by billionaire Elon Musk, has been slapped with a class-action lawsuit in the US charging that the company favors H-1B visa holders over American citizens in its hiring practices. The lawsuit alleges that Tesla violated federal civil rights law by discriminating against US applicants while leaning heavily on foreign workers.

Allegations Against Tesla

The lawsuit, filed by software developer Scott Taub and HR professional Sofia Brander, claims Tesla either rejected or refused to interview them once it became clear they were US citizens who did not require visa sponsorship. Taub said he was discouraged from pursuing a role after being told it was “H-1B only,” while Brander alleged that Tesla denied her interviews despite having prior contract experience with the company.

The plaintiffs contend that Tesla's hiring trend constitutes a type of "wage theft" by using foreign workers bound to visa requirements, businesses can supposedly keep wages down in relation to employing American engineers.

Tesla's Hiring Statistics Raise Red Flags

Numbers from MyVisaJobs indicate an apparent trend of visa reliance at Tesla:

• 2022: 1,108 H-1B approvals
• 2023: 1,089 approvals
• 2024: 1,767 approvals
• 2025: 539 approvals

In 2024 alone, Reuters reported that Tesla hired an estimated 1,355 visa holders while laying off more than 6,000 US workers, many of them citizens. This imbalance forms the crux of the lawsuit.

Why Does Elon Musk Opt for Foreign Talent Instead of Americans?

Elon Musk has never hidden his admiration for immigrant talent. A naturalized US citizen himself, Musk has often said his own H-1B journey shaped Tesla and SpaceX. In late 2024, Musk wrote on X (formerly Twitter), “America has benefited from an influx of very talented immigrants… bringing in the top 0.1 per cent of engineering talent is essential for America to keep winning.” He compared recruiting elite engineers from abroad to adding star athletes like Nikola Jokić or Victor Wembanyama to strengthen an NBA team.

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• Skill shortage:  Elon Musk argues that the world’s top 0.1 per cent engineering brains are rare, and America needs to attract them if it is to maintain dominance in technology.
• International competitiveness: Tesla and SpaceX encounter a highly competitive global landscape, requiring specialized expertise across the globe.
• Personal experience: Musk himself entered the US through the H-1B system and credits it for enabling Tesla, SpaceX, and X (formerly Twitter) to exist.
• Talent diversity: Musk believes immigrant engineers bring unique problem-solving approaches, enhancing innovation.
• Cost factor: Opponents claim Tesla prefers H-1B hires because they can be paid less than US citizens, reducing wage expenses.

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The lawsuit is filed on behalf of all US citizens who interviewed at Tesla but were allegedly ignored or discriminatorily rejected. Tesla hasn't yet publicly commented. As the case makes its way, it will challenge not just Tesla's employee selection procedures but also the more general argument about how America achieves global competitiveness while safeguarding US jobs.