A Houston-based fuel company says Tesla still hasn’t paid for millions of dollars’ worth of fuel it delivered to the electric carmaker’s massive Austin factory — and after two years of chasing down answers, they’ve taken the fight to court.
Sun Coast Resources filed a lawsuit in Harris County last week, accusing Tesla of dodging payment on $2.6 million in overdue invoices, some dating back to early 2023. According to the complaint, Tesla received the fuel, signed for it, and even acknowledged it owed money, but still hasn’t paid up.
“Tesla’s only reason for not paying is that Sun Coast supposedly didn’t follow Tesla’s invoice requirements,” the lawsuit states. “But Sun Coast has provided everything Tesla asked for, often more than once. Still, Tesla delays, blames internal confusion, and keeps dodging responsibility.”
Tesla has not commented publicly on the lawsuit.
A Texas Sized Deal Turns Into a Dispute
The two companies first signed a fuel supply agreement in August 2020. While Tesla is best known for electric vehicles and battery storage systems, building its sprawling Austin Gigafactory took plenty of diesel, gasoline, and other fuel products. Heavy machinery still runs on combustion.
Tesla’s 2,500-acre facility, about the size of 100 soccer fields, needed constant fuel deliveries during construction and early operations. Sun Coast says it became a regular vendor, supplying fuel not only to the factory but later to Tesla’s headquarters and logistics park as well.
The arrangement seemed straightforward. Tesla would request a fuel drop, Sun Coast would deliver it, and Tesla would later provide a purchase order number for invoicing. Tesla asked Sun Coast to bundle multiple deliveries into weekly invoices, and for a while, the process worked. From August 2020 through August 2024, Tesla paid more than $20 million to Sun Coast, according to court records.
But not everything got paid.
Delays, Excuses, and Personnel Turnover
Sun Coast’s complaint paints a picture of chaos inside Tesla’s billing department. The fuel supplier says it’s been passed from one Tesla employee to another, each citing new technicalities or changing documentation standards. Some Tesla representatives allegedly claimed certain invoices weren’t formatted properly or were missing internal approvals.
Sun Coast insists it met every request and resubmitted documents in multiple formats, only to be stalled again. The company’s frustration grew when even Tesla’s legal counsel got involved, only to make promises that still haven’t led to payment.
At one point, both companies held a joint call to walk through the unpaid invoices line by line. According to the filing, Tesla representatives promised a response within days and suggested some payments were forthcoming. That was weeks ago, and Sun Coast says it still hasn’t seen a dime.
A spreadsheet submitted as evidence shows more than two dozen unpaid invoices, the oldest dating back to January 2023.
Tesla’s Political Firestorm and Growing Fallout
This lawsuit arrives during a rocky stretch for Tesla. The company is dealing with consumer backlash, sharp declines in sales, and rising criticism tied to CEO Elon Musk’s political alignment with President Donald Trump. Musk has faced blowback for sweeping cuts to federal agencies and social programs, leading to widespread protests and attacks on Tesla showrooms.
Tesla is also the target of a class-action lawsuit alleging it manipulated vehicle odometers to shorten warranties. And earlier this week, Musk publicly denied reports that Tesla’s board is searching for a new CEO, dismissing claims that his political role has damaged the brand’s value.
Amid all this, the unpaid fuel bill is more than just a legal fight. It signals that their operational troubles may be hitting vendors too.
Sun Coast Wants a Judge to Step In
Sun Coast is asking the court to force Tesla to pay the $2.6 million it says is owed, along with attorneys’ fees and court costs. The company says it delivered the fuel, has the receipts, and did everything Tesla asked — yet still can’t get paid.
The case is now pending in Harris County District Court. If Tesla responds, it will have to explain why one of the world’s most valuable companies has left a Texas energy supplier holding the bag for diesel it burned long ago.
