Tesla
Lacks transparency. Publishes some details, but doesn't show its workers are paid and treated fairly.
Last researched 2 November 2026 · 16 sources
US electric carmaker selling the Model Y and Model 3, built in Shanghai.
Tesla's supply chain was linked to forced labour in 2025, and workers were seriously abused in its supply chain in 2016, which it has only partly put right.
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Why it's graded Lacks transparency
- Not met: Meets 1 of 6 Good requirements.
- Holds the grade back: It has 4 red flags: no evidence of a living wage, clear breaches of labour conditions, unaudited production in high-risk countries and forced or child labour. Two or more red flags means a poor grade.
- It isn't Harm on record: the most serious problem on its record (abuse of workers, last recorded in 2016) is more than 5 years old.
- Lacks transparency is still a poor grade: in supply chains like this, workers who can't be seen to be treated fairly are usually underpaid or unprotected.
Good requirements 1 of 6
- Not met: Pays a living wage, or holds a strong fair-pay certificationLiving wage: no evidence
- Not met: Respects worker rightsA confirmed problem counts against it: abuse of workers, last recorded in 2016
- Not met: Supply chain independently audited or certified, or at least 80% made in countries with strong labour standards
- Not met: No child or forced labour findings or links
- Met: Names the factories or farms that make its products, or is fully certified by a scheme that holds and audits that listMakes its products in its own factories
- Not met: Traces its battery metals to the mine and its aluminium to smelters outside Xinjiang
Red flags 4
- Red flag: No evidence it pays a living wageShown to explain the grade. It isn't one of the 3 red flags that set it.
- Red flag: Clear breaches of labour conditions
- Red flag: Made mostly in countries with poor worker rights, without a full independent audit of its supply chain
- Red flag: Forced, slave or child labour found in or linked to its supply chain
Stars it would earn as Good
None yet. Stars only show on Good companies. About stars
Where it's made
From press and retailer reports. Tesla makes its products in its own factories, but we haven't recorded its countries from it yet. The rest is shown as where cars and bikes are usually made.
| Country | Worker rights | Legal minimum wage | Forced labour risk |
|---|---|---|---|
| China | No guarantee of rights | Below a living wage | Moderate |
| JapanUsual for the industry | Strong protections | Close to a living wage | Low |
| ThailandUsual for the industry | No guarantee of rights | Below a living wage | Moderate |
| South KoreaUsual for the industry | No guarantee of rights | Close to a living wage | Low |
| GermanyUsual for the industry | Strong protections | About a living wage | Low |
| SpainUsual for the industry | Strong protections | Close to a living wage | Low |
| TürkiyeUsual for the industry | No guarantee of rights | Below a living wage | Very high |
| IndiaUsual for the industry | No guarantee of rights | Well below a living wage | High |
| MexicoUsual for the industry | Regular violations | Below a living wage | Moderate |
Evidence
What we found
- Risk across the industry, not a finding about this company: battery metals, aluminium and steel link carmakers to state-imposed forced labour in Xinjiang, child and forced labour in DR Congo's cobalt mines and deadly nickel smelters in Indonesia; aluminium auto parts and lithium-ion batteries from China are on the US forced labour list. Source
- Owns or runs its own production
- Publishes its mineral smelter list and uses independently audited smelters (RMAP) for tin, tantalum, tungsten and gold
- Modern slavery statement
- It belongs to a scheme such as IRMA or the Aluminium Stewardship Initiative, publishes some refiners or traces some of its metals, but doesn't show both its battery metals traced to the mine and its aluminium traced to smelters outside Xinjiang. Source
Research notes The Model Y and Model 3 sold in Australia are built at Tesla's own Gigafactory in Shanghai. Tesla is an IRMA purchasing member and joined the Aluminium Stewardship Initiative in 2024, publishes its 3TG smelters (63% engaged with RMI or conformant in its 2025 filing), and says it buys much of its lithium, cobalt and nickel directly from named mining companies (over 95%, 50% and 30% in 2021), but it doesn't show most of its battery metals traced to audited mines or its aluminium traced to smelters outside Xinjiang. Lead the Charge ranks its supply chain due diligence first among carmakers, while a jury found racial harassment at its Fremont plant and regulators' racism cases there are still open.
What independent sources say
| Source | Result | Details |
|---|---|---|
| Lead the Charge auto supply chain leaderboard | Listed | Tesla scored 48% on Human Rights & Responsible Sourcing in the Lead the Charge 2026 auto supply chain leaderboard (49% overall), 1st of 18 carmakers; detailed due diligence on nickel, lithium and cobalt, but no data on supplier audits and no collective agreement with its workers. View |
| News reporting and NGO investigations | Listed | Amnesty International's Recharge for Rights ranking (October 2024, the only edition) scored Tesla 49 out of 90 on battery supply chain human rights due diligence, second of 13 electric car makers. View |
| Australian Modern Slavery Register | Listed | Tesla's group modern slavery statements name Tesla Motors Australia and are lodged on the Australian register (2020 statement seen; a 2023 statement is published). View |
| UK Modern Slavery Statement Registry | Listed | Tesla publishes a Modern Slavery Act transparency statement (2023). View |
| US Department of Labor goods lists | Listed | The US Department of Labor's 2024 list names lithium-ion batteries from China (made with child labour inputs) and Chinese aluminium and aluminium auto parts (forced labour); the Teslas sold in Australia are built in Shanghai. View |
| US forced-labour import bans (UFLPA Entity List, CBP Withhold Release Orders) | Not listed | Neither Tesla nor the suppliers named in a 2025 investigation (Sanan Optoelectronics, Xincheng Auto Parts) is on the UFLPA Entity List (October 2026). View |
| Business & Human Rights Resource Centre | Problem found | Lists Tesla in the Sheffield Hallam (2022) and Bureau of Investigative Journalism (2025) investigations into Uyghur forced labour in car supply chains, with no response from Tesla to either. View |
Confirmed issues 4
Only confirmed problems are listed, and old ones drop off after 10 to 15 years. A problem the company has fully put right no longer counts against it, and nor does one it finds and is fixing itself. How problems are counted
| Last recorded | What happened | Made amends? |
|---|---|---|
| 2025 | Link through a supplierThe Bureau of Investigative Journalism found that Sanan Optoelectronics, which takes Uyghur workers through Xinjiang labour transfers, makes chips for Tesla through a partnership in Chongqing, and that Xincheng Auto Parts, which recruited through Xinjiang transfers from late 2022, has supplied Tesla (TBIJ via Business & Human Rights Resource Centre, 2025). Source · archived copy | Not knownTesla did not respond to several requests for comment from the Bureau of Investigative Journalism. |
| 2024 | Link through a supplierHuman Rights Watch found Tesla, which builds cars at its Shanghai Gigafactory, among carmakers failing to minimise the risk of Uyghur forced labour in the aluminium in their cars (Human Rights Watch, 2024). Source · archived copy | PartlyTesla told Human Rights Watch it had mapped its aluminium supply chain in several cases and found no forced labour, but did not say how much of its aluminium remains of unknown origin. |
| 2022 | Link through a supplierSheffield Hallam University and NomoGaia's Driving Force report named Tesla among carmakers with several supply chain exposures to steel, aluminium and copper made with Uyghur forced labour (Sheffield Hallam University, 2022). Source · archived copy | Not knownTesla did not respond to the Business & Human Rights Resource Centre's request for a response. |
| 2016 | A US federal jury found in 2021, and a second jury confirmed in 2023, that Tesla let Black worker Owen Diaz be racially harassed while working at its Fremont car plant in 2015-2016, awarding US$137 million, later cut to US$3.2 million (Electrek, 2026). Source · archived copy | PartlyTesla paid Owen Diaz after a second jury cut his award to US$3.2 million and settled some other claims, but it denies systemic racism and is contesting the regulators' cases. |
Unconfirmed reports
Credible reports that haven't been confirmed by a regulator, completed investigation or the company. They're shown for your information and don't affect the grade.
- California's Civil Rights Department, which says Black workers at Fremont faced slurs and racist graffiti and earned about US$1,533 a month less than white workers from 2018 to 2024, took its case against Tesla to trial in September 2026; no verdict has been reported (Electrek, 2026). Source
- The US Equal Employment Opportunity Commission sued Tesla in 2023, saying Black workers at Fremont had faced routine racial slurs, graffiti and threats since at least 2015 and were punished for complaining; the case is in mediation (Manufacturing Dive, 2023; Electrek, 2026). Source
- A US labour judge found in 2019 that Tesla broke federal labour law 12 times to thwart a union at Fremont, including firing a union supporter and a tweet by Elon Musk implying staff would lose stock options; in 2024 a federal appeals court struck out the order on the tweet and sent the worker's reinstatement back to the labour board (PV Tech, 2019; Legal Dive, 2024). Source
- Swedish union IF Metall ended a strike of more than 1,000 days, begun in October 2023, without Tesla signing a collective agreement, and said Tesla had bought out the striking workers (International Employment Lawyer, 2026). Source
Sources and actions
Sources 16
Show all 16 sources
- China: Carmakers Implicated in Uyghur Forced Labor (Human Rights Watch, 2024) · archived copy · Tesla builds cars at its Shanghai Gigafactory; mapped aluminium in several cases; didn't say how much is of unknown origin
- Tesla scorecard 2026 (Lead the Charge) · search the archive · 49% overall, 48% human rights, 1st of 18; no collective agreement with its workers
- IRMA members and partners · search the archive · Tesla, Inc. is an IRMA purchasing member
- ASI welcomes Tesla Inc. as new Industrial User member (Aluminium Stewardship Initiative, 2024) · search the archive · Tesla joined ASI as an Industrial User member in March 2024; Lathrop-Harlan site aiming for certification
- China: More than 30 automobile brands have products with Xinjiang forced labour risks (Business & Human Rights Resource Centre, 2025) · archived copy · TBIJ investigation naming Tesla; Tesla did not respond
- Report: Driving Force: automotive supply chains and forced labor in the Uyghur Region (Business & Human Rights Resource Centre) · archived copy · Tesla named with several exposures; did not respond
- Tesla, Inc. Conflict Minerals Report (SEC Form SD, filed 2025) · search the archive · 3TG smelter list published; 241 of 341 eligible smelters (63%) engaged with RMI or conformant; no battery mineral refiners or mines named
- List of Goods Produced by Child Labor or Forced Labor (US Department of Labor, 2024) · search the archive · Aluminium from China and auto parts made with it
- The most popular new cars in Australia by country of origin (Chasing Cars, August 2025) · search the archive · Tesla Model Y and Model 3 sold in Australia come from China
- Tesla is sourcing lithium, nickel and cobalt directly from mines (Electrek, 2022) · search the archive · Over 95% of lithium hydroxide, 50% of cobalt and over 30% of nickel sourced directly in 2021; nine mining companies listed
- Tesla racism trial begins in California over treatment of Black Fremont workers (Electrek, September 2026) · archived copy · Civil Rights Department bench trial from 21 September 2026; Owen Diaz verdicts (US$137 million in 2021, US$3.2 million on retrial); EEOC case in mediation
- Tesla's unionising pushback violated federal labour law, court finds (PV Tech, 2019) · search the archive · Labour judge found 12 violations, including firing a union supporter and Musk's tweet
- Fifth Circuit overturns NLRB's Musk tweet decision (Legal Dive, 2024) · search the archive · Order on the tweet vacated; reinstatement order vacated and remanded
- Did coerced labour build your car? (The Bureau of Investigative Journalism, 2025) · search the archive · Sanan Optoelectronics' Chongqing partnership makes chips for Tesla; Xincheng Auto Parts has supplied Tesla
- Tesla settles some worker racism claims from California plant (Insurance Journal/Bloomberg, June 2026) · search the archive · Three workers' claims settled; class decertified; state case set for trial
- Tesla beats three-year Nordic strike without signing labour deal (International Employment Lawyer, 2026) · search the archive · IF Metall ended its strike after more than 1,000 days without a deal
Company details
- Owned by
- Tesla, Inc.
- Headquarters
- United States
- Employees
- About 125,000
- Last researched
- 2 November 2026
- Cite this page
- Labour Lens, "Is Tesla ethical? Labour rating", https://www.labourlens.net/brand/tesla, last researched 2 November 2026, accessed [date].
- Method
- Researched with AI assistance against published rules. How we check · What Lacks transparency means
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Grades are opinions based on the evidence listed here. Send us evidence, or a right of reply if you represent Tesla.