Tesla will have to defend itself in court after a U.S. federal judge ruled that a proposed class-action lawsuit accusing the automaker of discriminating against American workers in hiring can move forward — at least for now.
In a decision issued this week in San Francisco, U.S. District Judge Vince Chhabria declined Tesla’s request to dismiss claims brought by software engineer Scott Taub, who alleges the company favored foreign workers holding H-1B visas over U.S. citizens for certain engineering roles. However, the judge also signaled significant doubts about whether the allegations will ultimately succeed.
According to the ruling, Taub presented “just enough facts” for the case to proceed beyond the early dismissal stage, allowing the lawsuit to move into the discovery phase where additional evidence may be examined. (via Reuters)
Allegations Focus on Engineering Hiring Practices
Taub claims Tesla passed him over for an engineering position as part of what the lawsuit describes as a “systematic preference” for hiring visa holders. Central to the complaint is an alleged interaction with a recruiter who reportedly told him the position he applied for was “H1B only,” referring to visas commonly used by U.S. technology companies to employ highly skilled foreign workers.
The lawsuit also points to Tesla’s workforce changes in 2024, alleging the company hired approximately 1,355 H-1B visa holders during the same period it laid off more than 6,000 domestic employees, most believed to be U.S. citizens.
Judge Chhabria emphasized that those statistics alone do not prove discrimination, noting they demonstrate hiring activity but not necessarily preferential treatment.
“All of this causes the Court to be somewhat skeptical of Taub’s allegations,” Chhabria wrote in the order.
Second Plaintiff’s Claims Dismissed
While Taub’s claims will proceed, the court dismissed allegations brought by a second plaintiff, human resources specialist Sofia Brander. The judge said it was implausible that Tesla would favour foreign visa holders for HR positions, particularly since H-1B programs are typically associated with specialized technical roles.
Brander has been given two weeks to amend and refile her complaint if she wishes to continue pursuing the case.
Tesla Denies Allegations
Tesla has strongly rejected the accusations in court filings, calling the claims “preposterous.” The company has not publicly commented further following the ruling.
Tesla CEO Elon Musk has previously defended skilled immigration programs, arguing they are critical for maintaining competitiveness in advanced industries such as artificial intelligence and vehicle autonomy.
For now, the lawsuit’s survival represents only an early procedural step. As the case moves into discovery, Tesla’s internal hiring records and communications could face closer scrutiny — a process that may ultimately determine whether the claims gain traction or are dismissed at a later stage.
