Elon Musk-led Tesla Sued Over Preference for H1-B Visa Holders in Hiring

Tesla is facing a class-action lawsuit in the United States. The case claims the company favored H1-B visa workers over American citizens. The lawsuit was filed in San Francisco federal court on September 14, 2025.

According to Reuters, the complaint accuses Tesla of showing a systematic preference for visa holders. Plaintiffs argue that U.S. citizens were denied fair chances at employment. The case also highlights that thousands of American workers were laid off while visa hires increased.

Tesla’s Hiring Practices Under Scrutiny

The lawsuit was brought by software engineer Scott Taub and HR specialist Sofia Brander. Both allege they were rejected for jobs because Tesla prioritized workers needing visa sponsorship.

The complaint cites data from 2024. Tesla reportedly hired about 1,355 H1-B visa workers while laying off more than 6,000 U.S. employees. Plaintiffs claim most of those laid off were American citizens.

The filing states that H1-B visa holders often receive lower pay than U.S. employees in similar roles. The practice is described as a form of wage manipulation. Critics argue it undermines local workers.

Elon Musk himself has publicly defended the visa program. In a December 2024 post on X, Musk praised the H1-B system. He said it allowed people like him and other innovators to build companies in the U.S.

Broader Impact and Legal Questions

The lawsuit seeks damages for American citizens who applied but were not hired, or who were laid off. Plaintiffs must still prove systemic discrimination in court. Tesla has not issued a statement on the lawsuit.

The H1-B visa allows U.S. companies to employ foreign professionals in specialized fields. It has been a controversial program for years. Supporters say it fills skill gaps in tech. Opponents say it puts American jobs at risk.

If the claims succeed, Tesla may face heavy financial penalties. It could also face new restrictions on future hiring practices. The case adds to ongoing debates about immigration, tech hiring, and fair pay in the U.S. labor market.

Tesla now faces intense legal and public pressure. The outcome of this lawsuit may shape how U.S. companies balance local hiring with global talent. Elon Musk-led Tesla remains at the center of this debate.

FYI (keeping you in the loop)-

Q1: Why is Tesla being sued?

Tesla is being sued for allegedly favoring H1-B visa holders over U.S. citizens in hiring. Plaintiffs say this led to unfair layoffs and wage issues.

Q2: Who filed the lawsuit against Tesla?

The lawsuit was filed by Scott Taub, a software engineer, and Sofia Brander, a human resources specialist. They claim Tesla denied them jobs because they are U.S. citizens.

Q3: How many visa workers did Tesla hire?

The complaint states Tesla hired about 1,355 H1-B visa workers in 2024. At the same time, the company laid off more than 6,000 American employees.

Q4: What is the H1-B visa program?

The H1-B visa is a U.S. program that allows companies to hire foreign professionals for specialized jobs. It is common in technology and engineering fields.

Q5: Has Tesla responded to the lawsuit?

Tesla has not released a public statement about the lawsuit. The case is still pending in San Francisco federal court.