Tesla union lawsuit exposes purported concerns over business profitability

Facebook
Twitter
LinkedIn
Reddit
Email
Tesla's Fremont, California factory. Source: Flickr, Pestoverde

Tesla has come under fire for its employment practices once more, with reports of discrimination complaints laying bare worries over profitability at the firm's very top.

An investigation by a local affiliate of CBS News, reported by Quartz, Business Insider and other US outlets, revealed that six former employees of the company’s upstate New York solar cell and module factory have filed racism and discrimination complaints with the US Equal Employment Opportunity Commission (EEOC) and the state’s Division of Human Rights.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

According to the News 4 Buffalo report, the employees, who are black and Hispanic and were fired in January, have alleged that racial epithets and slurs were used on the factory floor and that less-qualified white colleagues were prioritised for promotions. They say that 80% of the 47 workers fired in January were minorities.

An exchange between Tesla CEO Elon Musk and one former employee included in the report laid bare the former's purported concerns over the carmaker's business.

Responding directly via email to the concerns of a fired worker in early February, Musk allegedly wrote: “I wish I could spend time on the Buffalo factory, but Tesla must get cars to Europe and China and address critical service overload in the US or there will be no Tesla,” according to News 4 reporter Dan Tevlock on Twitter.

Musk is alleged to have written in a subsequent email: “We have a huge struggle right now to avoid being a money-losing company (aka not dead), but I’m hoping to visit Buffalo next quarter.”

The racism allegations come just a month after a federal administrative judge found that Tesla violated labour law on 12 different occasions when it tried to stop workers at its Fremont plant from unionising. And in 2018, workers at Fremont reported racial slurs, racist drawings, threats, and a lack of promotions given to African-Americans to the New York Times.

Contacted by PV Tech this week, Tesla had yet to respond at the time of publication.

NY State reported to write down factory by US$884m

Tesla has owned the ‘Gigafactory 2’ factory in Buffalo since it purchased SolarCity – the manufacturing outfit owned by Tesla CEO Elon Musk’s first cousins Peter and Lyndon Rive – for US$2.6 billion in 2016.

The factory was heavily subsidised by New York Governor Andrew Cuomo as part of a plan to jump-start the economy of upstate New York in 2013. The state invested US$959 million to bankroll construction but also equipment costs.

The deal allows Tesla to pay US$1 a year for 10 years to lease the plant but requires the carmaker to, in return, spend US$5 billion on operating expenses and capital in the state and bring 5,000 jobs. It also committed to employ 1,460 people by April 2020 or face penalties of US$41.2 million.

On November 7, CNET reported that Tesla and factory partner Panasonic employ 730 full-time staff and 43 contractors.

In early November, the Wall Street Journal reported that the state had written down the value of the factory by US$884 million.

According to an old page on the Tesla website, the Buffalo facility spans 1.2 million square feet, employs nearly 800 people, and produces items for Tesla's solar panel, Solar Roof and Powerwall home battery lines. It started production in 2017 and operations and production “continue to ramp.”

7 October 2025
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 7-8 October 2025 is our third PV CellTech conference dedicated to the U.S. manufacturing sector. The events in 2023 and 2024 were a sell out success and 2025 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.
21 October 2025
New York, USA
Returning for its 12th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.
16 June 2026
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 16-17 June 2026, will be our fifth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2027 and beyond.

Read Next

September 5, 2025
US solar tracker manufacturer Nextracker has launched a new electrical balance of systems (eBOS) trunk connector.
September 5, 2025
During a week of major US clean energy developments, ContourGlobal, PSE, Arevon, and Ameren Missouri advanced solar projects across four states in the US.
September 5, 2025
Newly formed firm Solaris Assets has acquired the business operations and assets of Texas-based residential solar installer Sunnova.
September 5, 2025
US solar tracker manufacturer Array Technologies has announced that two of its tracking systems are compatible with 2,000V solar systems.
September 4, 2025
Gavin Newsom has signed an executive order to accelerate the permitting of energy generation projects that could be set to lose IRA support.
September 4, 2025
US polysilicon company Highland Materials has aimed to begin construction at its polysilicon plant in the second half of 2026.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines