A U.S. judge has refused to dismiss a lawsuit accusing Tesla of discriminating against American citizens in its hiring practices. The suit alleges the electric carmaker prefers to hire foreign workers on H-1B visas to save on costs. However, the judge expressed skepticism that the plaintiff, a software engineer, would ultimately win the case.
In an order issued late Monday, U.S. District Judge Vince Chhabria stated that the engineer, Scott Taub, had provided “just enough facts” about Tesla’s hiring practices for the case to proceed. The lawsuit, filed last September, claims Tesla passed over Taub for an engineering job as part of a “systematic preference” for foreign visa holders, which allegedly violates federal civil rights law. It also states that recent layoffs at the company have disproportionately affected U.S. citizens.
The judge ruled that Tesla must face Taub’s specific claim that a recruiter told him the engineering position he sought was “H1B only.” This refers to the visas granted to highly educated foreign workers, which are widely used in the tech industry.
However, the judge dismissed the claims of a second plaintiff, a human resources specialist, stating it was implausible that Tesla would prefer foreign workers for HR positions. That plaintiff was given two weeks to submit a revised complaint with more detailed allegations.
In court filings, Tesla has denied the accusations, calling them “preposterous.” The lawsuit highlights the company’s reliance on H-1B visas, noting that in 2024, Tesla hired an estimated 1,355 visa holders while laying off more than 6,000 domestic workers, most of whom were believed to be U.S. citizens.
Despite allowing the case to move forward, Judge Chhabria noted that beyond the recruiter’s comment, Taub had presented little concrete evidence of discrimination. He pointed out that statistics showing Tesla hired a substantial number of H-1B workers do not, by themselves, prove a preference over American citizens. “All of this causes the Court to be somewhat skeptical of Taub’s allegations,” the judge wrote.
