Tesla is accused of refusing to pay over $2 million in overdue fuel bills for deliveries made to its Texas facility.
Tesla, the electric car maker led by Elon Musk, is facing legal action over an unpaid debt exceeding $2 million for fuel deliveries.
Sun Coast Resources claims Tesla has not paid for over two years of fuel deliveries to its Texas facility.
The unpaid amount totals $2,638,777, with the debts dating back to 2020.
Fuel deliveries to Tesla’s Texas facility remain unpaid.
According to the complaint, Sun Coast began providing fuel to Tesla’s Texas facility in August 2020, under a master services agreement.
Despite Tesla’s need for fuel to power heavy equipment used for constructing its facility, the company allegedly refused to settle its outstanding bills.
The fuel delivered included diesel, gasoline, and other products necessary for the construction process.
Sun Coast claims that Tesla initially paid over $20.7 million for fuel deliveries between August 2020 and August 2024.
However, not all fuel deliveries were paid for, and a balance of more than $2.6 million remains outstanding.
The fuel provider states that it has repeatedly made efforts to resolve the issue, but Tesla continues to delay payments.
Tesla’s alleged excuses for non-payment
The fuel provider argues that Tesla has given a series of excuses for the non-payment.
According to Sun Coast, the primary reason Tesla provided for the delayed payments was that the company did not comply with its invoice submittal requirements.
However, Sun Coast claims that it has gone to great lengths to meet Tesla’s demands, providing the necessary documentation multiple times.
Despite these efforts, Tesla allegedly continues to delay payments and offer new justifications for the failure to settle the bills.
“Tesla’s only reason for not paying Sun Coast is that Sun Coast has allegedly not complied with its requirements for invoice submittals,” Sun Coast added.
“To the contrary, Sun Coast has jumped through all of Tesla’s proverbial hoops and provided all the documentation Tesla has requested, often multiple times, and Tesla continues to delay and make excuses as to why it has not paid for products that it knows it received.”
Ongoing disputes and delays continue affecting payments.
The situation has continued to worsen despite efforts by both parties to resolve it.
Sun Coast claims it re-explained payment details during a joint call with Tesla’s legal team.
Despite promises from Tesla, Sun Coast claims no payments have been made, and the invoices remain unpaid.
While Tesla has never denied receiving the fuel, the company has yet to respond to Sun Coast’s requests for payment.
The fuel provider claims that Tesla assured them it would make partial payments but has yet to follow through on these promises.
Elon Musk’s leadership and impact on Tesla’s operations
This legal battle comes at a time when Tesla and its CEO, Elon Musk, are facing growing scrutiny.
Musk has made headlines recently for his political role as the head of the Department of Government Efficiency (DOGE) under President Donald Trump.
Musk’s political role has raised concerns among investors about his ability to effectively manage Tesla.
The protests and vandalism affecting Tesla dealerships, along with declining sales, have further added to concerns about the company’s future.
Investors have begun to call for Musk to step down as CEO, citing his increased focus on political matters rather than the operational needs of Tesla.