Tesla has recently come under fire for not paying its bills, leading to at least two small American businesses going bankrupt. According to a report by CNN, contractors in Texas have filed liens for more than $110 million against Tesla in the last five years, with over $24 million still allegedly owed to dozens of businesses.
One such example highlighted in the report is a small pipe welding business that secured a multi-million-dollar contract with Tesla to build the Gigafactory Texas in Austin in 2022. The owner, Jennifer Meissner, dedicated her entire crew to the project, hired more employees, and bought new equipment, only for Tesla to stop paying its bills. This led to immense pressure on Meissner’s company, forcing her to take more loans and ultimately resulting in her bankruptcy.
Similarly, another local small business, Full Circle Technologies, faced a similar situation after Tesla failed to pay them $600,000 for installing security systems at the factory. The company was forced to take on high-interest loans and eventually filed for bankruptcy. While Tesla claimed that Full Circle breached their contract, the two companies ultimately settled without Tesla paying a cent.
Several other cases involving unpaid bills by Tesla have surfaced, with contractors left struggling to stay afloat. Some contractors have even claimed that Elon Musk’s companies have a reputation for not paying on time, with one subcontractor stating that Tesla “absolutely did not care about putting a company out of business.”
The report also found that Musk’s other companies, such as Twitter, have faced similar issues, with contractors only being paid when forced to. While Tesla’s outside counsel acknowledged the company’s poor payment practices, citing delays in payments even for legal bills.
Overall, the report sheds light on Tesla’s poor payment practices, with over $100 million in liens in Texas alone. While some attribute this to the sheer volume of accounts payable, others believe it reflects Tesla’s approach to doing business. Despite claims of “saving the future of the world,” the failure to pay contractors on time raises concerns about the company’s priorities.
