Tesla Says Use of Cheap Labor Would Be ‘Unacceptable'

Tesla's reputation came under fire over the weekend after a report from The Mercury News said the car company used cheap foreign labor to build one of its new facilities.

The Mercury News reported that Tesla contractor Eisenmann and a subcontractor ISM Vuzem hired more than 140 workers from Eastern European countries and paid them as little as $5 an hour to build a car-painting facility in Fremont, California, CNBC reported.

One such worker, Gregor Lesnik, is attempting to sue his employers after reportedly falling three stories while building the Tesla facility and breaking both his legs.

Tesla, which is known for its higher-than-average hourly wages, said if the claims against its contractors are true, they are "totally unacceptable."

In a statement on Monday Tesla denied knowledge of its contractors' possible underpayment of workers; representatives declined to comment further.

Contact Us