A federal judge has ruled that Tesla must face a lawsuit accusing the electric vehicle maker of discriminating against American citizens in its hiring practices. U.S. District Judge Vince Chhabria in San Francisco rejected Tesla's attempt to dismiss the case, finding that plaintiff Scott Taub presented sufficient facts about the company's recruitment patterns to move forward.

Taub, a software engineer, alleges Tesla systematically favored foreign visa holders over U.S. citizens for engineering positions, citing a recruiter's comment that a job was "H1B only." The lawsuit also claims Tesla's layoffs disproportionately affected American workers, with the company hiring an estimated 1,355 H-1B visa holders in 2024 while laying off more than 6,000 domestic employees. Judge Chhabria dismissed claims from a second plaintiff, human resources specialist Sofia Brander, finding it implausible that Tesla would prefer foreign workers for HR roles.

While allowing the case to proceed, Chhabria expressed skepticism about Taub's ability to prove discrimination, noting the plaintiff has presented scant evidence beyond the recruiter's comment. The judge emphasized that hiring statistics alone don't prove preference for foreign workers over qualified American candidates. Tesla has denied the allegations, calling them "preposterous" in court filings, as the case moves toward discovery.