Small businesses are owed millions by Tesla, pushing some to bankruptcy
- Small businesses have filed more than $110 million in liens against Tesla in the past five years.
- Contractors claim they faced financial hardship, with some declaring bankruptcy due to unpaid bills.
- The high volume of liens suggests a troubling pattern in Tesla's payment practices that could jeopardize small businesses.
In Texas, many small businesses have struggled with unpaid bills from Tesla over the last five years, leading to significant financial distress. Contractors have filed liens totaling more than $110 million against Tesla, with over $24 million still owed to numerous businesses. Among those affected is Meissner, the owner of Professional Process Piping, who reported that Tesla stopped paying for over $1 million in services after she dedicated her entire workforce to a project. This abrupt cessation of payments forced her company to ultimately reach a settlement in bankruptcy court, although she is still out hundreds of thousands of dollars. Other companies, like Full Circle Technologies, faced similar fates and were driven to bankruptcy after completing work for Tesla and not receiving compensation for their efforts. The non-payment patterns revealed in the CNN analysis have raised serious concerns regarding professional ethics and business practices within Musk’s companies, indicating a trend of stipulations in contracts making it easier for Tesla to delay or deny payment. As the situation continues, many contractors are left hoping to recover their dues, while others feel that Teslas' business operations reflect a disregard for the consequences faced by small businesses providing essential services and products.