Tesla, led by Elon Musk, is facing a class-action lawsuit in San Francisco federal court. The case alleges that the company prefers H-1B visa holders over American citizens in its hiring process, violating U.S. civil rights laws.
Software engineer Scott Taub and HR specialist Sofia Brander filed the complaint. Taub said Tesla discouraged him from applying for one role by marking it “H-1B only.” He added that the company excluded him from another interview. Brander, a former Tesla contract worker, claimed the company denied her two interviews despite her experience.
The lawsuit states Tesla uses visa workers to cut costs. It argues that Tesla pays H-1B employees less than American workers performing the same duties. In 2024, Tesla reportedly hired 1,355 visa workers while laying off more than 6,000 employees, most believed to be U.S. citizens.
The complaint also cites a December 2024 post from Musk. In it, he admitted that H-1B visas were crucial for Tesla and SpaceX. The plaintiffs want compensation for U.S. citizens who applied but were rejected or were later fired by the company.
