Tesla has a market cap of just over $1 trillion. Yet small businesses are struggling as it refuses to pay them for their work, CNN reported.
What's happening?
CEO Elon Musk has garnered attention for his political activities and companies, including Tesla and SpaceX.
A shareholder meeting scheduled for November may even feature calls for his removal from his lofty position at Tesla.
CNN's recent investigation sheds new light on Tesla's business practices. Many of the small businesses that Tesla contracted were not paid for their labor or products, forcing at least two of them into bankruptcy.
"It's been horrible. If I didn't have my family, I don't think I would have made it," Jennifer Meissner, one of the business owners who went bankrupt, said.
Unpaid contractors have filed liens against Musk's companies. Liens are legal claims against property that allow a creditor to take the property if the debt isn't paid.
CNN's financial analysis shows that more than $110 million in liens have been filed against Tesla over the past five years, with a potential $24 million still owed.
For Meissner, the lack of payment from Tesla meant taking on high-interest loans and struggling to keep her business afloat and to pay her employees. Even after settling with Tesla in court, Meissner claims she has been underpaid by hundreds of thousands of dollars.
Why is Tesla important?
Tesla has become, for better or worse, almost synonymous with electric vehicles. Stories of Tesla vandalism and declining sales might make it seem like there has been a drop in EV interest.
However, analysis from Cox Automotive puts EV sales in the first half of 2025 in the United States at 607,089, a record high.
TCD Picks » Quince Spotlight
💡These best-sellers from Quince deliver affordable, sustainable luxury for all
|
Which of these factors is your biggest obstacle to purchasing an EV? Click your choice to see results and speak your mind. |
Cost concerns 💸 Transitioning to EVs is important because they play a crucial role in reducing planet-warming pollution, encouraging drivers to shun dirty fuel-powered vehicles in favor of cleaner electric versions.
According to the Environmental Protection Agency, even when accounting for mining for battery elements and manufacturing pollution, EVs produce much less pollution over their life cycles than gasoline-powered alternatives.
What's being done about EVs and Tesla?
With the One Big Beautiful Bill Act, the federal tax credit for EVs is set to expire Sept. 30. Those looking to take advantage should act quickly.
As for Tesla's outstanding debts to contractors, Meissner wants Musk to know how many lives have been hurt by the company's negligence in paying.
"When there are that many [liens], that looks like standard business to me, and that's shady," she told CNN.
Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Cool Picks
