In a now controversial move, Tesla has reportedly replaced thousands of U.S. employees laid off earlier this year with foreign workers on H-1B visas, sparking debates over labor practices and the visa program's role in American job markets, Breitbart reported.
Tesla, led by billionaire Elon Musk, is under scrutiny following reports that it replaced many laid-off U.S. employees with foreign workers on H-1B visas. This revelation comes as Musk continues to champion the visa program despite backlash from critics who argue it undermines American workers.
According to Electrek, citing U.S. Department of Labor data and accounts from Tesla employees, the company increased its use of H-1B visas after cutting approximately 15,000 jobs in April 2024. The layoffs, concentrated in Texas and California, affected all departments, including senior engineering roles.
H-1B visas, designed to allow U.S. companies to hire foreign workers for specialized occupations, are often justified as filling gaps in the domestic labor market. However, critics argue the program is being misused to lower labor costs and displace American workers.
Reports indicate Tesla filed over 2,000 H-1B visa requests during the layoff period, accounting for more than 3% of the total visas available nationwide.
Sources allege that junior foreign engineers at reduced pay rates filled many roles vacated by senior engineers who commanded higher salaries. This has reignited debates about whether the H-1B program grants companies excessive leverage over foreign workers, potentially creating conditions akin to modern indentured servitude.
Musk has publicly defended the program, stating that companies like Tesla must access skilled talent that is not readily available in the U.S.
Speaking on the X platform, Musk responded sharply to criticism from conservatives. When an X user suggested "optimizing" the H-1B program, Musk retorted:
"The reason I'm in America along with so many critical people who built SpaceX, Tesla, and hundreds of other companies that made America strong is because of H1B. Take a big step back and F*** YOURSELF in the face. I will go to war on this issue, the likes of which you cannot possibly comprehend."
Musk's comment, borrowing a line from the film "Tropic Thunder," underscores his strong stance on the visa program.
Proponents of the H-1B program, including Musk and entrepreneur Vivek Ramaswamy, argue that it addresses skill shortages in specialized fields, particularly technology and engineering.
Critics maintain that companies exploit the program to prioritize cost-cutting over retaining qualified American workers.
The controversy over Tesla's labor practices has intensified calls for reforming the H-1B visa program. As the debate continues, Musk's defense of the program and Tesla's reported use highlight the broader tensions between innovation, labor rights, and immigration policy.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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