A U.S. judge refuses to dismiss a lawsuit accusing Tesla of discriminating against American citizens in hiring to pay less to foreign workers. The judge is skeptical that the software engineer who sued will prevail, but sees enough facts to move the case forward. The electric carmaker allegedly prefers foreign visa holders for engineering jobs and layoffs disproportionately target U.S. citizens.

The judge dismissed claims by a second plaintiff but gave her two weeks to amend her complaint. Tesla denies the allegations and calls them “preposterous.” President Trump imposed a $100,000 fee on new H-1B visas to deter businesses from abusing the program. The lawsuit states that Tesla heavily relies on H-1B visa holders, hiring 1,355 in 2024 while laying off over 6,000 U.S. workers.

The lawsuit alleges Tesla hired a significant number of H-1B visa holders in 2024 but lacks evidence to show a preference over U.S. citizens. The judge remains skeptical of the discrimination claims, citing the lack of conclusive statistics. Tesla and the plaintiffs’ lawyers have not responded to requests for comment on the ongoing legal battle.

Read more at Yahoo Finance: Tesla must face lawsuit alleging anti-American bias in hiring, US judge rules