Investment Analysis Report: Tesla's H-1B Visa Employees Account for 2% of Its Workforce

According to Elon Musk’s response on social media, among Tesla’s approximately 150,000 employees, 2,908 hold H-1B visas, accounting for approximately

[1]. This incident originated from some netizens urging Tesla to reduce the number of H-1B visa employees, while Musk clearly stated that the recruitment of foreign professionals is based on [1].

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Indicator	Value	Investment Interpretation
Total Workforce	150,000 people	Large multinational manufacturing + technology enterprise
Number of H-1B Employees	2,908 people	Only 1.94% of the total workforce
Estimated Annual Salary Cost	$8,000 per H-1B employee per year	Higher than the industry average
Proportion of Total Labor Costs	Approximately 2%	Minimal impact on the overall cost structure [0]

Based on public data and industry benchmark analysis [0][1]:

• Total Labor Costs
  : Estimated at approximately
  $15 billion-$20 billion per year
• H-1B Related Costs
  : Approximately
  $250 million per year
  (including visa fees)
• Cost Savings Assumption
  : Even if H-1B employees are paid 10% less than local employees, annual savings would only be approximately
  $15 million-$20 million
• Impact on Net Profit
  : Only accounts for
  0.5%-0.8%
  of Tesla’s annual net profit, negligible

: The above chart shows Tesla’s workforce composition, cost structure, and sensitivity analysis of salary differences. H-1B employees account for only 2%, so the cost impact is extremely limited.

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Company Type	H-1B Proportion	Risk of Policy Impact	Investment Rating
Tesla	≈2%	Low	Stable
Amazon	≈5%	Medium-Low	Stable
Microsoft/Google	≈3%	Medium-Low	Stable
IT Outsourcing Companies (TCS, Infosys, Cognizant)	30%-50%	Extremely High	High Risk

: Compared to IT outsourcing companies that are highly dependent on H-1B visas, Tesla’s H-1B dependence is extremely low, and its policy risk exposure is much smaller.

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• H-1B employees account for only
  1.94%
  of the total workforce, far below the industry average
• Even if the U.S. government implements a new $100,000 visa fee policy [2][3], the direct impact on Tesla is:
  • Annual additional cost:
    $15 million-$20 million
    (assuming new H-1B employees)
  • Proportion of revenue:
    <0.01%
• Conclusion
  : The H-1B controversy
  does not constitute
  a short-term investment risk factor for Tesla

Tesla’s H-1B strategy reflects the core of its talent strategy:

Strategic Area	Key Talent Requirements	Role of H-1B Employees
FSD (Full Self-Driving)	AI/ML Algorithm Experts	Core R&D
Dojo Supercomputer	Chip Design/High-Performance Computing	Key Positions
4680 Battery	Materials Science/Electrochemistry	Technological Breakthroughs
Optimus Humanoid Robot	Mechatronics/Control Theory	Innovation Driver

• Musk emphasized “skill requirements” rather than “cost considerations”[1], indicating that Tesla regards H-1B as a
  strategic talent recruitment
  tool
• Compared to the “labor arbitrage” model of IT outsourcing companies, Tesla’s H-1B strategy is
  innovation-driven

2025 H-1B Policy Changes [2][3]:

• New $100,000 overseas application fee (effective September 2025)
• Shift to a wage-priority screening system
• Strengthened compliance reviews

:

Risk Dimension	Assessment	Investment Implication
Policy Exposure	Low (2% proportion)	Limited negative impact
Alternative Solutions	Can switch to local recruitment/overseas R&D	High flexibility
Strategic Importance	High-skilled talents are indispensable	Long-term value
Compliance Risk	Good historical record	Low legal risk

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1. H-1B Is Not a Cost Arbitrage Tool
   : The salary cost of Tesla’s 2,908 H-1B employees (1.94%) accounts for only a tiny proportion, so the investment logic of “cutting H-1B employees to save costs”
   does not hold

2. Low Policy Risk Exposure
   : Compared to IT outsourcing companies highly dependent on H-1B such as TCS and Infosys (over 93% of new H-1B employees will face the $100,000 fee)[2][3], Tesla’s risk of policy impact is
   significantly lower

3. Talent Strategy Reflects Innovation Capability
   : Tesla’s H-1B strategy focuses on
   cutting-edge technology fields
   such as FSD, AI, and chip design, reflecting its long-term strategy of “driving innovation with top global talents”

4. Limited Impact on ESG Ratings
   : H-1B employees account for only 2%, so controversies in the social dimension of ESG will not have a substantial impact on Tesla’s ratings

Evaluation Dimension	Score	Explanation
Financial Impact	★☆☆☆☆	Cost proportion <2%, impact is negligible
Policy Risk	★★☆☆☆	Low exposure, controllable
Talent Strategy	★★★★★	Reflects high-quality talent demand
Competitive Advantage	★★★★☆	Focuses on high-skilled positions

: The H-1B controversy for Tesla’s investment value; instead, it highlights the fundamental difference between its talent strategy and that of low-cost arbitrage enterprises. Investors should focus on Tesla’s core competitiveness (technological innovation, capacity expansion, profit margin improvement) rather than this human resources issue with an extremely low proportion.

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[1] LiveMint - “Tesla H-1B Visa Program: Elon Musk Advocates for Skilled Foreign Talent” (https://www.livemint.com/companies/tesla-h-1b-visa-program-elon-musk-advocates-for-skilled-foreign-talent-11768081068944.html)

[2] Economic Times - “What the H-1B visa looks like after the 2025 reset” (https://m.economictimes.com/nri/work/what-the-h-1b-visa-looks-like-after-the-2025-reset/articleshow/126264948.cms)

[3] Yahoo Finance - “Tata and Infosys to Bear Brunt of Trump’s $100,000 H-1B Fee” (https://finance.yahoo.com/news/tata-infosys-bear-brunt-trump-172928192.html)

[0] Jinling API Data - Tesla real-time quotes, company profile and financial data