Tesla’s Growing Contractor Debt: Over $24 Million in Liens Filed Against the EV Giant

Tesla, the crown jewel of Elon Musk’s sprawling business empire, is under increasing financial scrutiny after contractors across the country have filed more than $24 million in liens against the company for unpaid work. According to an investigation by CNN, many of these claims come from small, family-run businesses that played a role in building Tesla’s massive manufacturing footprint — including the company’s sprawling Gigafactories.

While unpaid invoices are not uncommon in large-scale construction projects, contractors and former partners say Tesla has developed a reputation for delayed payments and difficult billing procedures. Some claim the company’s slow pay cycles have pushed them to the brink of insolvency.

‘Like Tossing an Invoice Into a Black Hole’

The CNN report reveals that contractors often face what they describe as an impenetrable bureaucracy when attempting to collect from Tesla.

"Many of these businesses claim that sending an invoice to Tesla is like tossing it into a black hole," the report notes. As a result, some have resorted to filing liens and lawsuits just to get a response.

One such case involves Professional Process Piping, which filed for bankruptcy after Tesla allegedly left more than $500,000 in invoices unpaid. CNN’s review of court records found that $380,000 of those invoices were more than 90 days past due. At one point, Tesla’s unpaid work for the company topped $1 million — forcing the owner to pay for equipment from personal funds.

Tesla’s legal team countered by alleging the company had been overbilled and that the work was substandard. Still, the automaker’s own attorney admitted during bankruptcy proceedings: “I don’t disagree that it does take Tesla some time to pay. That goes for legal bills, too [...] I know it full well.”

Small Businesses Hit the Hardest

Full Circle Technologies, a small Austin-based security integration firm specializing in access control and video surveillance, also ended up in bankruptcy after claiming Tesla owed nearly $600,000. In court documents, the company said it had to take on high-interest loans to cover costs while waiting for payment.

Tesla responded by alleging that Full Circle breached its contract and owed Tesla money. Yet the owner told CNN that Tesla was “released from its obligation without paying a cent,” fueling contractor speculation that non-payment may be a deliberate negotiation tactic.

Another dispute involves Houston-based Sun Coast Resources, which sued Tesla for more than $2.6 million after the automaker allegedly failed to pay for fuel used at its Austin Gigafactory site.

Tesla vs. Apple: A Stark Contrast

In the same counties where Tesla owes $24 million in liens, Apple owes just $1.2 million. While a lien doesn’t prove wrongdoing — it simply asserts that money is owed — the scale of Tesla’s unpaid obligations dwarfs those of many peers.

According to CNN’s research, more than 100 companies currently hold active liens against Musk-owned businesses. This pattern raises questions about Tesla’s payment culture.

Reputation in Question

Some contractors see Tesla’s slow payments as incompetence; others view it as strategy. By delaying payments and forcing disputes into legal mediation, Tesla may be able to negotiate lower settlement amounts — but at the cost of vendor relationships.

An Austin entrepreneur told CNN anonymously: "[Elon Musk's] goal is to run through everything now — he doesn’t care what or who that impacts — to save the future of the world. 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."

Bigger Implications

The wave of liens and lawsuits could impact Tesla’s ability to secure willing contractors for future projects, especially as it ramps up operations in Texas, Nevada, and other locations. Large suppliers may weather delayed payments, but smaller contractors often lack the financial cushion to absorb months-long payment delays.

For now, Tesla remains silent on whether it plans to address the outstanding claims, leaving dozens of small businesses in limbo — and a growing paper trail of legal disputes that could shadow the EV maker’s next big expansion.

Originally reported by Rob Stumpf in MSN News.