A federal judge in California has ruled that Tesla must face a class‑action lawsuit brought by a software engineer who alleges the electric‑vehicle maker showed a “systematic preference” for hiring foreign workers on H‑1B visas over US citizens. The decision means the case will now move forward to the discovery phase, reports HRDSoftware engineer Scott Taub filed a lawsuit in September 2025 on behalf of American workers. He says Tesla refused to hire him for an engineering job because the company prefers foreign workers. He also claims that Tesla laid off mostly US citizens while continuing to hire employees on temporary visas.In a short ruling, a judge said Taub gave “just enough facts” about Tesla’s hiring practices for his lawsuit to continue.

H1-B only role?

A main point in the case is a recruiter’s alleged comment that the engineering job Taub applied for was “H1B only,” meaning it was for workers on H-1B visas. The court said Tesla must respond to these claims as the case moves forward.The lawsuit also claims that Tesla’s 2024 layoffs affected US citizens more than foreign workers. Court papers say the company hired around 1,355 H‑1B visa holders that year while laying off over 6,000 employees in the US, most of whom were American citizens. The judge said these numbers do not prove discrimination on their own but are part of the case’s context.Tesla has denied the allegations in court filings, calling them “preposterous.” The H1-B visa allows highly skilled foreign workers to get employed in US jobs in crucial fields like tech and defence. The programme is dominated by Indian and Chinese workers who occupy majority of roles in different verticals of the economic market.