Tesla Sued for Allegedly Favoring Foreign Visa Workers Over Americans

Going Local

While a global economy is a good thing, it does affect the local industry. One of the main talking points of the Trump administration has been to “Make America Great Again,” part of this is to revive the once thriving manufacturing sector of the country.

The stance has always been to bring in more industry, create more manufacturing jobs for more Americans, and reduce outsourcing. Foreign workers have always been a part of the nation’s fabric, seeking the American dream, but some Americans are claiming corporations are taking advantage of them in certain cases. Case in point: Tesla.

Un-American

According to a Reuters report, a suit has been filed in a US court alleging that EV automaker Tesla is discriminating against Americans in hiring. Specifically, the Musk-led company is being sued for giving preference to foreign workers to pay lower salaries. Tesla sought to have the case dismissed, but the presiding judge, Vince Chabria, allowed it to proceed, saying that just enough facts had been presented to keep it going.

One of the plaintiffs, Scott Taub, claims that Tesla overlooked him for an engineering position due to a systemic preference for foreign visa holders. He goes on to say that the company’s layoffs have been disproportionately biased against U.S. Citizens. A key piece of evidence in the case is an email stating that the position Taub sought was open only to H-1B visa holders.

The judge also dismissed the second plaintiff’s claims, this time from HR specialist Sofia Brander. Brander said it was implausible that Tesla had hired only foreign workers for HR positions. The judge said she has two weeks to file an amended complaint that better highlights her claims. Tesla, on the other hand, has merely called the allegations preposterous, according to court filings.

H-1B Preferences Bad For America

H-1B visa holders are highly skilled and educated foreign workers. These people have become essential to big tech companies like Tesla. In a bid to prevent companies from abusing this visa class, President Donald Trump recently imposed a $100,000 fee on new H-1B holders. This new rule is already being challenged in court across three lawsuits.

Another statistic brought up during the proceedings is that in 2024, Tesla hired 1,355 skilled workers but laid off 6,000 Americans. Judge Chabria was quick to point out that this shows only that the company hired many H-1B visa holders, not that Tesla prefers them over Americans. Immigration is the hottest topic now, and any decision made in this case will surely be felt and heard across the nation.