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Tesla settles suit with injured foreign factory worker for $550,000

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9 years ago

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Tesla has settled a lawsuit filed by subcontractor Gregor Lesnik after claims that he fell three-stories and was injured while working on the company’s state of the art paint shop at the factory in Fremont, California.

According to a report by the Mercury News, Lesnik was awarded $550,000 for back wages and injuries after suffering broken legs, ribs and a concussion as a result of the fall.

The story has gained attention after the San Jose Mercury published a report of its investigation on Tesla after claims made by foreign factory workers of alleged unfair treatment. Lesnik was part of a group of foreign workers managed by Slovenian company ISM Vuzem who claimed they were shuttled from and to the Tesla factory to work six to seven days a week at wages as low as $5 per hour.

Among the claims in the original lawsuit were :

  • Eisenmann USA wrote letters to the U.S. Embassy on behalf of Lesnik and as many as 200 foreign workers stating they would supervise employees at a U.S. auto plant. Most of the Vuzem workers were nonsupervisory laborers and tradesmen.
  • Tesla issued company security badges to the foreign workers, recorded their time on site and shared responsibility for setting safety conditions.
  • Vuzem required foreign employees to regularly work between 60 and 70 hours a week. Vuzem paid Lesnik an average of 800 euros per month, or about $900, for a rate of less than $5 per hour. Lesnik was promised an equal amount when he returned home, but the company never paid the balance.
  • The companies violated wage and employment laws and benefitted from the cheap labor of foreign workers. Workers were promised $12.70 an hour based on a standard workweek. The suit estimates they are due $2.6 million in overtime and premium pay.

Tesla would later respond with a story defending the company’s stance that it operated within legal limits and that Lesnik’s claim was one of a moral issue at heart.

According to Tesla’s issued response, Lesnik’s accident as a result of slipping on loose tile and falling three stories while working on the company’s high-volume paint shop, was investigated by the government regulator that oversees workplace accidents (Cal/OSHA) and found to be not at fault of the company. Tesla’s statement says, “When Mr. Lesnik brought a workers compensation case, Tesla was dismissed from the case because the judge concluded that we had no legal responsibility for what occurred.”

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The $550,000 settlement is the total sum from the original suit calling for $400,000 to end Lesnik’s pending civil suit and $150,000 for his workers’ compensation claim. Mercury News reports that the case was settled 10 days after the initial investigations in May of this year, though final details of the settlement weren’t filed until Monday.

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‘Tesla tax’ could be no more in United Kingdom

A tax on vehicles in the United Kingdom is set to be adjusted after automakers have blamed it for struggling sales.

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9 hours ago

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May 24, 2025

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Credit: Tesla

A controversial tax set on cars that are above the £40,000 price threshold in the United Kingdom could be abandoned, as the “Tesla Tax,” as it is commonly referred to, is taking the blame for poor EV sales.

The tax has been imposed on ICE vehicles since 2017, but on April 1, 2025, the “Expensive Car Supplement,” or ECS, was applied to new EVs sold after that date, a move that was initiated in an act of fairness.

Tesla best-rated car brand in UK, beats Toyota in reliability: survey

However, the tax is now being blamed for sluggish EV sales across various parts of Europe. In the UK, manufacturers are blaming the tax for making it more difficult to reach sales quantities for binding green car sales targets. Missing these sales goals could cost manufacturers millions or even billions of dollars.

A leaked letter seen by This Is Money and MailOnline shows the UK is ready to reconsider the tax, which is combined with a Vehicle Excise Duty (VED) on cars in the second year after they are registered.

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The tax could be applied to vehicles at a higher price point, or it could be eliminated altogether. However, Ben Maguire, a Lib Dem MP for one region in the UK, said:

“We will consider raising the threshold for zero-emission cars only at a future fiscal event to make it easier to buy electric cars.”

Several companies said an adjustment to the tax would be “a move in the right direction,” and one of the major new car retailers in the UK said sales targets are “unrealistic” with the tax currently set at where it is.

UK reconsiders EV sales targets, listening to automakers

Even still, without the adjustment, retailers are concerned that EVs are not at a spot where consumers truly can justify them as a purchase. One company said “cost, lack of incentives, and lack of a public charging infrastructure” are the biggest bottlenecks in the adoption of EVs.

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Tesla’s new Model S and X spotted, but they leave a lot to be desired

The Model S and Model X testing mules spotted by The Kilowatts have few minor visual changes.

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1 day ago

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May 23, 2025

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Credit: Tesla

Tesla has been hinting for a few months now that the flagship Model S and Model X would be getting some attention in 2025 as the vehicles continue to be sold in extremely low volumes.

Both models seem to be under the knife, especially as their newest versions were spotted in California earlier this week.

However, images of the vehicles seem to show that Tesla is not planning a major overhaul, which begs the question: why even do it in the first place?

Tesla makes a decision on the future of its flagship Model S and Model X

The Model S and Model X are grouped with the Cybertruck in Tesla’s quarterly delivery releases, and Q1 saw just 12,881 units of the three cars delivered. The Cybertruck likely made up the majority of this number, as some outlets reported around 6,400 deliveries of the all-electric pickup in Q1.

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This is unconfirmed.

The Model S and Model X have stuck around for “sentimental reasons,” according to CEO Elon Musk, who said back in 2021:

“I mean, they’re very expensive, made in low volume. To be totally frank, we’re continuing to make them more for sentimental reasons than anything else. They’re really of minor importance to the future.”

However, the cars seem to be in need of a serious refresh. As Tesla changed up the exterior aesthetic on both the Model 3 and Model Y, recent images captured of the Model X by The Kilowatts seem to show this is not the strategy with the Model X or Model S:

As we can see, the overall aesthetic of the X, if this is what Tesla plans to release, has literally no changes from a purely visual standpoint. There is the addition of the front bumper camera, which was first implemented on the Cybercab unveiled in October 2024, and then on the new Model Y this year.

There are some new 20″ wheels, and the interior has been fitted with ambient lighting.

The Model S looked to be relatively the same, other than these few hardware changes, including a rear diffuser on this Plaid that was spotted:

While these changes are welcome and should be beneficial, they don’t seem like they will encourage major sales growth, which might be something Tesla is okay with.

Admitting the two cars are low volume and not contributors to the company’s long-term goals, Musk is likely willing to just upgrade things to make these more compatible and better functioning with the Full Self-Driving suite.

Earlier this year, VP of Vehicle Engineering Lars Moravy said the S and X were not going anywhere and would get “some love” before the end of 2025:

“Just give it a minute. We’ll get there. The upgrade a couple of years ago was bigger than most people thought in terms of architecture and structure of the car got a lot better, too. But, we’ll give it some love later this year and make sure it gets a little bit…you know, with the stuff we’ve been putting in 3 and Y. Obviously, with 3 and Y, the higher volume stuff, you’ve gotta focus there.”

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It seems these strategies have held true — the S and X appear to be getting what the 3 and Y got with the ambient lighting and front bumper camera (at least on the Model Y).

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Tesla set for ‘golden age of autonomous’ as Robotaxi nears, ‘dark chapter’ ends: Wedbush

Tesla is set to win big from the launch of the Robotaxi platform, Wedbush’s Dan Ives said.

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1 day ago

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May 23, 2025

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Tesla (NASDAQ: TSLA) is set to kick off its own “golden age of autonomous growth” as its Robotaxi platform nears launch and a “dark chapter” for the company has evidently come to a close, according to Wedbush analyst Dan Ives.

Ives has jostled his price target on Tesla shares a few times already this year, usually switching things up as the market sways and the company’s near-term outlook changes. His price target on Tesla has gone from $550 to $315 to $350 back to $500 this year, with the newest adjustment coming from a note released early on Friday.

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As CEO Elon Musk has essentially started to dwindle down his commitment to the Department of Government Efficiency (DOGE) altogether, Ives believes that Tesla’s “dark chapter” has come to a close:

“First lets address the elephant in the room…2025 started off as a dark chapter for Musk and Tesla as Elon’s role in the Trump Administration and DOGE created a life of its own which created brand damage and a black cloud over the story….but importantly those days are in the rear-view mirror as we are now seeing a recommitted Musk leading Tesla as CEO into this autonomous and robotics future ahead with his days in the White House now essentially over.”

Ives believes Tesla’s launch of Robotaxi should be the company’s way to unlock at least $1 trillion in value alone, especially as the Trump White House will fast-track the key initiatives the automaker needs to get things moving in the right direction:

“The $1 trillion of AI valuation will start to get unlocked in the Tesla story and we believe the march to a $2 trillion valuation for TSLA over the next 12 to 18 months has now begun in our view with FSD and autonomous penetration of Tesla’s installed base and the acceleration of Cybercab in the US representing the golden goose.”

There are some concerns moving forward, but none of which relate to the AI/autonomous play that Ives primarily focuses on within the Friday note. Instead, they are related to demand in both Europe and Asia, as Ives said, “there is still wood to chop to turn around Model Y growth” in both of those markets.

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Nevertheless, the big focus for Ives is evidently the launch of Robotaxi and the potential of the entire autonomous division that Tesla plans to offer as a ride-sharing service in the coming months. Ives also believes a 50 percent or more penetration of Full Self-Driving could totally transform the financial model and margins of Tesla moving ahead.

Aware of the setbacks Tesla could encounter, Ives still believes that Tesla will establish itself as “the true autonomous winner over” and that investors will recognize the AI vision the company has been so bullish on.

Ives pushed his price target to $500. Tesla shares are down just under 1% at the time of publication. They are trading at $337.88 at 11:45 on the East Coast.

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