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Tesla implicated in foreign worker scandal after reports of visa violations
The San Jose Mercury finds that up to 140 low wage workers were used to build the new Tesla paint shop at the Fremont factory. They were supplied with phony B1/B2 visas by foreign companies.
Updated: Tesla has issued a response to the story which can be seen here.
Tesla is justly proud of its new state-of-the-art painting facility capable of scaling up to 500,000 vehicles per year at the Fremont factory, but a report coming from the San Jose Mercury published on May 15 says that underpaid foreign workers contributed to the construction of the paint shop violating terms of their B1/B2 visas.
The Mercury began its investigation after Gregor Lesnik, a native of Slovenia who worked on the expansion of Tesla’s multimillion dollar Fremont factory paint shop in 2015, filed suit against Tesla and several other defendants. Lesnik was seriously injured while working on the paint shop project after slipping on loose tile and falling three stories before breaking both legs, ribs, and sustaining a concussion.
The newspaper reports that in 2014, Lesnik was an unemployed electrician living with his mother in Velenje, Slovenia. His girlfriend was expecting their first child and money was tight. He saw an ad seeking workers placed by ISM Vuzen, a construction company located in Slovenia. Vuzem provides teams of Eastern European workers to build manufacturing plants in Europe and the U.S. Among its clients are Mercedes-Benz, Toyota, Volkswagen, Ford, and Saab.
In March, 2015, Tesla selected Eisenmann, a German-based manufacturer of industrial systems, to expand the Fremont paint shop. Eisenmann claimed it was the most valuable contract in its history at $100 million. Soon it began hiring subcontractors to fill out the work force for the project. It turned to Vuzen for some of those workers.
Vuzen helped Lesnik apply for a US visa. Eisenmann assisted. Robert Keller, its US purchasing manager based out of Chicago, was listed as Lesnik’s U.S. contact. After Lesnik filed his lawsuit, Eisenmann denied that it had any legal responsibility for him.
US immigration officials were told that Lesnik was a supervisor with specialized training who would be working at a paint shop for a BMW factory in South Carolina. Keller told INS in a letter that Lesnik was a “supervisor of electrical and mechanical installation. His assignment will involve multiple border entries,” Keller wrote, “but in no way adversely affect the employment of citizens of the United States.”
That couldn’t be further from the truth, says Rob Stoker, president of the Building and Construction Trades Council of Alameda County. “There’s definitely something wrong with this picture.” He claims a local company lost the bid on the Tesla project party because their labor costs were higher. The job would have meant tens of thousands of work hours and valuable training for local apprentices. “It killed us,” Stoker said. “We had so many people — ready, willing and able — needing this.”
For Lesnik and his fellow employees provided by Vuzen, the work in Fremont paid an average of $5 an hour with no benefits. They often worked 12 hour days, sometimes 7 days a week. He claims that Tesla employees who he worked side by side with were earning up to 10 times as much.
Tesla denies any responsibility for Lesnik, his injuries, or his immigration status. A company spokesperson told the Mercury, “Tesla expects all its contractors and their subs … to comply with all applicable pay laws.” Of course they do. But the real question is, how closely do they look at the status of people working at their facilities?
As with similar worker abuse issues that have beset other companies, such as Apple’s troubles with Foxconn, it is one thing to have high expectations. It is quite another to take adequate steps to ensure those expectations are met. All too often, it is easier to look the other way, especially when millions of dollars are involved.
Source and photo credit: San Jose Mercury
News
Tesla-inspired door handles prohibited under China’s new safety standard
The rule effectively ends a design trend pioneered by Tesla and widely adopted across China’s electric vehicle market.
China will ban hidden door handles on electric vehicles starting 2027 under a new national safety standard, forcing automakers to equip their cars with mechanical exterior and interior handles.
The rule effectively ends a design trend pioneered by Tesla and widely adopted across China’s electric vehicle market.
China bans hidden door handles
China’s Ministry of Industry and Information Technology (MIIT) noted that the new mandatory national auto safety standard on EV door handles will take effect on January 1, 2027. For models that have already received approval and are scheduled for launch, automakers will be allowed to complete required design changes by January 2029.
Under the new rules, exterior door handles must remain operable even in scenarios involving irreversible restraint system failures or thermal runaway incidents in the battery pack. Doors must also be capable of opening even if the vehicle loses electrical power. Interior doors must include at least one independent mechanical release handle per door as well.
Safety concerns drive rollback
Hidden and electrically actuated door handles have become mainstream in recent years as EV makers pursued cleaner styling and improved aerodynamics. Tesla pioneered the hidden handle design, and it was adopted by most Chinese EV manufacturers in either fully hidden or semi-hidden forms, as noted in a CNEV Post report. Today, about 60% of top-selling EVs in China use the design.
Chinese regulators have stated that the designs pose safety risks, particularly in crashes or power failures where doors may not open from the inside or outside. Authorities cited multiple fatal incidents in which occupants or rescuers were unable to open vehicle doors after collisions.
One high-profile case occurred last October, when a Xiaomi SU7, a vehicle designed to be a competitor to the Tesla Model 3, caught fire following a crash in Chengdu in southwest China. The driver died after bystanders were unable to open the doors. The incident sparked intense scrutiny over the SU7’s Tesla-inspired door handles.
News
Tesla’s global fleet surpasses 9 million vehicles worldwide
The update was posted by Tesla China, which competes in the world’s most competitive electric vehicle market.
Tesla’s global fleet has now exceeded 9 million vehicles, a major milestone for the electric vehicle maker.
The update was posted by Tesla China, which competes in the world’s most competitive electric vehicle market.
Tesla’s global fleet crosses 9 million vehicles
The milestone was highlighted in a graphic shared by Tesla China, which thanked the over nine million Tesla owners worldwide for their support over the years. To celebrate the milestone, Tesla China announced several incentives for select owners, from Model Y L test drives to Tesla Bot Premium Gift Sets to Supercharging perks.
The milestone comes 16 years after the company started delivering its first vehicle, the original Tesla Roadster, as observed by members of the Tesla community. The first production Roadster was delivered to Elon Musk, who was serving as chairman at the time.
Reaching a global fleet of more than 9 million vehicles reflects the cumulative impact of Tesla’s growth over the past decade, particularly following the introduction of high-volume models such as the Model 3 and Model Y. The Model 3 and Model Y have allowed Tesla to transform from a niche automaker into one of the world’s largest producers of electric cars.
Strong China sales help drive fleet growth
Tesla’s expanding global footprint has been supported by solid performance in China, where the company posted a strong finish to 2025. In December, the Model Y ranked as the country’s top-selling new energy vehicle, as per sales data compiled by Chinese auto industry aggregator Yiche.
The Model Y led China’s NEV rankings with approximately 65,874 units sold during the month, outperforming a field dominated by domestic manufacturers such as BYD, SAIC-GM-Wuling, and Xiaomi. Tesla’s Model 3 also delivered an impressive result, ranking eighth overall with just under 28,000 units sold, ahead of numerous locally produced competitors despite its premium pricing.
Tesla China’s broader performance in December was equally notable. The company sold 97,171 vehicles wholesale during the month, based on data from the China Passenger Car Association. The result marked Tesla China’s second-highest monthly total on record, trailing only November 2022’s peak of 100,291 units.
Tesla has launched another new affordable Model Y configuration in the United States, now adding a fifth version of the all-electric crossover to its lineup, diversifying the car’s options and giving consumers more choices at the time of purchase.
Tesla launched the Model Y All-Wheel-Drive on Monday night, pricing it at $41,990. It features 294 miles of range, a 125 MPH top speed, and a 0-60 MPH acceleration rate of 4.6 seconds.
The vehicle is the second most-affordable configuration of the Model Y, only eclipsing the Model Y Rear-Wheel-Drive, which is priced at $39,990.
The move to expand the Model Y lineup comes just a week after CEO Elon Musk confirmed the company would remove the Model S and Model X from production, making way for manufacturing of the Optimus robot at the company’s Fremont, California, factory.
🚨 Tesla has just launched the Model Y All-Wheel-Drive, a new configuration, in the U.S. for $41,990
It has 294 miles of range, a 4.6s 0-60 MPH acceleration rate, and a 125 MPH top speed pic.twitter.com/cyd81m26vB
— TESLARATI (@Teslarati) February 3, 2026
The Model Y All-Wheel-Drive fits the bill of the “Standard” offerings of the vehicle that Tesla launched last year. It is void of many of the more luxurious features, which are available in the “Premium” trim levels, available in Rear-Wheel-Drive, All-Wheel-Drive, and Performance.
The differences between the Standard and Premium configurations can be found in the video below:
@teslarati There are some BIG differences between the Tesla Model Y Standard and Tesla Model Y Premium #tesla #teslamodely ♬ Sia – Xeptemper
With five configurations now available in the Model Y, it certainly seems as if Tesla is attempting to get the vehicle available in more options than ever before.
With the Model S and Model X being removed from production due to their irrelevance to the future and Tesla’s focus on autonomy, diversifying the Model Y portfolio seems to align with the idea that the company is okay with making more variations of its most popular car.
Tesla Model Y Standard: first impressions from a Premium owner
Removing the Model S and Model X and replacing them with a new Model Y configuration is not exactly what fans have been wanting; many have been wondering what Tesla will do to replace the need for a bigger SUV for large families.
Nevertheless, Tesla’s relentless attitude toward solving autonomy and its preparation to launch a self-driving ride-hailing service seem to fit the bill for this move. Soon, it will be the Model 3, Model Y, and Cybercab playing the main parts of this autonomous future. The Cybertruck will be sticking around for other things, like local hauling.
Tesla-inspired door handles prohibited under China’s new safety standard
Tesla’s global fleet surpasses 9 million vehicles worldwide
