Elon Musk’s Tesla, Other Ventures Face $100M Tab In Unpaid Bills To Small Businesses, Media Investigation Reveals

CNN ground reports showed that small and medium-sized contractors working on Tesla’s Texas Gigafactory and other ventures led by Musk faced delayed or denied payments, prompting some to file for bankruptcy.

Tesla is under fresh scrutiny after an investigation found the company and other Elon Musk–led ventures reportedly owe more than $100 million in unpaid bills to small contractors. 

The findings, based on a review of lawsuits and construction liens, reveal that dozens of businesses hired to work on Tesla’s Gigafactory in Texas and other Musk-owned properties say they were never paid, or faced months-long delays that forced them into financial crisis, according to a CNN report.

In Texas alone, Tesla has been the subject of over $110 million in lien filings over the past five years, with $24 million still reportedly unpaid. Contractors hired to install plumbing, paint buildings, and outfit facilities with robots and security systems say nonpayment from Tesla derailed their businesses. 

SpaceX and X have also reportedly faced similar accusations, including lawsuits related to fuel deliveries, jet travel, and construction services.

Among the most prominent cases is that of Jennifer Meissner, owner of Professional Process Piping, whose firm undertook a multimillion-dollar project for Tesla's Gigafactory. After dedicating her entire workforce to the project and investing in equipment, Meissner says Tesla suddenly stopped paying. 

Unable to cover wages, she filed for bankruptcy and drained her savings. “They just don’t understand how many lives they completely trashed,” 

Tesla ultimately settled in bankruptcy court, agreeing to pay $650,000 to Meissner’s subcontractors. However, Meissner says she remains hundreds of thousands of dollars in debt. In court, a Tesla attorney acknowledged that the company is often slow to pay, saying: “I don’t disagree that it does take Tesla some time to pay,” adding “that goes for legal bills, too … I know it full well.”

Other businesses have faced similar hardship. Full Circle Technologies, a small supplier of security equipment, filed for bankruptcy after Tesla allegedly failed to pay nearly $600,000 in outstanding invoices. Fuel supplier Sun Coast Resources claimed Tesla refused to pay for $2.7 million in diesel deliveries. Both cases were eventually settled.

In comparison, other large tech companies operating in Texas have faced far fewer such claims, according to CNN. Apple, for instance, had just $1.2 million in lien filings across comparable construction projects.

Tesla, SpaceX, and X have not responded to CNN’s requests for comment.

Industry experts said that lien filings are typically a last resort, and the volume filed against Musk’s companies may indicate a broader issue with how they manage contractor payments. 

“When there are that many [liens], that looks like standard business to me, and that’s shady,” Meissner said.

Some contractors said they were reluctant to take legal action or speak publicly, citing Musk’s reputation and frequent use of non-disclosure agreements. 

One Austin-based entrepreneur said, “Tesla was probably one of the only companies we did business with where it just felt like they absolutely did not care about putting a company out of business.”

On Stocktwits, retail sentiment was ‘bullish’ for Tesla and X, though message volume remained ‘low’ for Tesla and ‘normal’ for X. 

Sentiment for SpaceX was ‘bearish’ with ‘low’ message activity.

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