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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.

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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.

Tesla-Fremont-Supercharger-RevoZport

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.”

Tesla Fremont factory

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?

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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

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Tesla Cybercab spotted with interesting charging solution, stimulating discussion

The port is located in the rear of the vehicle and features a manual door and latch for plug-in, and the video shows an employee connecting to a Tesla Supercharger.

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Credit: What's Inside | X

Tesla Cybercab units are being tested publicly on roads throughout various areas of the United States, and a recent sighting of the vehicle’s charging port has certainly stimulated some discussions throughout the community.

The Cybercab is geared toward being a fully-autonomous vehicle, void of a steering wheel or pedals, only operating with the use of the Full Self-Driving suite. Everything from the driving itself to the charging to the cleaning is intended to be operated autonomously.

But a recent sighting of the vehicle has incited some speculation as to whether the vehicle might have some manual features, which would make sense, but let’s take a look:

The port is located in the rear of the vehicle and features a manual door and latch for plug-in, and the video shows an employee connecting to a Tesla Supercharger.

Now, it is important to remember these are prototype vehicles, and not the final product. Additionally, Tesla has said it plans to introduce wireless induction charging in the future, but it is not currently available, so these units need to have some ability to charge.

However, there are some arguments for a charging system like this, especially as the operation of the Cybercab begins after production starts, which is scheduled for April.

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Wireless for Operation, Wired for Downtime

It seems ideal to use induction charging when the Cybercab is in operation. As it is for most Tesla owners taking roadtrips, Supercharging stops are only a few minutes long for the most part.

The Cybercab would benefit from more frequent Supercharging stops in between rides while it is operating a ride-sharing program.

Tesla wireless charging patent revealed ahead of Robotaxi unveiling event

However, when the vehicle rolls back to its hub for cleaning and maintenance, standard charging, where it is plugged into a charger of some kind, seems more ideal.

In the 45-minutes that the car is being cleaned and is having maintenance, it could be fully charged and ready for another full shift of rides, grabbing a few miles of range with induction charging when it’s out and about.

Induction Charging Challenges

Induction charging is still something that presents many challenges for companies that use it for anything, including things as trivial as charging cell phones.

While it is convenient, a lot of the charge is lost during heat transfer, which is something that is common with wireless charging solutions. Even in Teslas, the wireless charging mat present in its vehicles has been a common complaint among owners, so much so that the company recently included a feature to turn them off.

Production Timing and Potential Challenges

With Tesla planning to begin Cybercab production in April, the real challenge with the induction charging is whether the company can develop an effective wireless apparatus in that short time frame.

It has been in development for several years, but solving the issue with heat and energy loss is something that is not an easy task.

In the short-term, Tesla could utilize this port for normal Supercharging operation on the Cybercab. Eventually, it could be phased out as induction charging proves to be a more effective and convenient option.

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Tesla confirms that it finally solved its 4680 battery’s dry cathode process

The suggests the company has finally resolved one of the most challenging aspects of its next-generation battery cells.

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tesla 4680
Image used with permission for Teslarati. (Credit: Tom Cross)

Tesla has confirmed that it is now producing both the anode and cathode of its 4680 battery cells using a dry-electrode process, marking a key breakthrough in a technology the company has been working to industrialize for years. 

The update, disclosed in Tesla’s Q4 and FY 2025 update letter, suggests the company has finally resolved one of the most challenging aspects of its next-generation battery cells.

Dry cathode 4680 cells

In its Q4 and FY 2025 update letter, Tesla stated that it is now producing 4680 cells whose anode and cathode were produced during the dry electrode process. The confirmation addresses long-standing questions around whether Tesla could bring its dry cathode process into sustained production.

The disclosure was highlighted on X by Bonne Eggleston, Tesla’s Vice President of 4680 batteries, who wrote that “both electrodes use our dry process.”

Tesla first introduced the dry-electrode concept during its Battery Day presentation in 2020, pitching it as a way to simplify production, reduce factory footprint, lower costs, and improve energy density. While Tesla has been producing 4680 cells for some time, the company had previously relied on more conventional approaches for parts of the process, leading to questions about whether a full dry-electrode process could even be achieved.

4680 packs for Model Y

Tesla also revealed in its Q4 and FY 2025 Update Letter that it has begun producing battery packs for certain Model Y vehicles using its in-house 4680 cells. As per Tesla: 

“We have begun to produce battery packs for certain Model Ys with our 4680 cells, unlocking an additional vector of supply to help navigate increasingly complex supply chain challenges caused by trade barriers and tariff risks.”

The timing is notable. With Tesla preparing to wind down Model S and Model X production, the Model Y and Model 3 are expected to account for an even larger share of the company’s vehicle output. Ensuring that the Model Y can be equipped with domestically produced 4680 battery packs gives Tesla greater flexibility to maintain production volumes in the United States, even as global battery supply chains face increasing complexity.

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Tesla Giga Texas to feature massive Optimus V4 production line

This suggests that while the first Optimus line will be set up in the Fremont Factory, the real ramp of Optimus’ production will happen in Giga Texas.

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Credit: Tesla/YouTube

Tesla will build Optimus 4 in Giga Texas, and its production line will be massive. This was, at least, as per recent comments by CEO Elon Musk on social media platform X.  

Optimus 4 production

In response to a post on X which expressed surprise that Optimus will be produced in California, Musk stated that “Optimus 4 will be built in Texas at much higher volume.” This suggests that while the first Optimus line will be set up in the Fremont Factory, and while the line itself will be capable of producing 1 million humanoid robots per year, the real ramp of Optimus’ production will happen in Giga Texas. 

This was not the first time that Elon Musk shared his plans for Optimus’ production at Gigafactory Texas. During the 2025 Annual Shareholder Meeting, he stated that Giga Texas’ Optimus line will produce 10 million units of the humanoid robot per year. He did not, however, state at the time that Giga Texas would produce Optimus V4. 

“So we’re going to launch on the fastest production ramp of any product of any large complex manufactured product ever, starting with building a one-million-unit production line in Fremont. And that’s Line one. And then a ten million unit per year production line here,” Musk stated. 

How big Optimus could become

During Tesla’s Q4 and FY 2025 earnings call, Musk offered additional context on the potential of Optimus. While he stated that the ramp of Optimus’ production will be deliberate at first, the humanoid robot itself will have the potential to change the world. 

“Optimus really will be a general-purpose robot that can learn by observing human behavior. You can demonstrate a task or verbally describe a task or show it a task. Even show it a video, it will be able to do that task. It’s going to be a very capable robot. I think long-term Optimus will have a very significant impact on the US GDP. 

“It will actually move the needle on US GDP significantly. In conclusion, there are still many who doubt our ambitions for creating amazing abundance. We are confident it can be done, and we are making the right moves technologically to ensure that it does. Tesla, Inc. has never been a company to shy away from solving the hardest problems,” Musk stated. 

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