Elon Musk's Tesla sued over 'racial bigotry' at California plant

A United States civil rights agency has filed a lawsuit against Elon Musk-led Tesla, accusing the electric car manufacturer of permitting severe racial harassment against Black employees at its flagship assembly plant in California.

The United States Equal Employment Opportunity Commission (EEOC) initiated legal proceedings in a federal court on Thursday, alleging that from 2015 to the present, Black workers at Tesla’s Fremont facility have consistently endured racial slurs, offensive graffiti featuring symbols such as swastikas and nooses, and a hostile work environment.

According to the EEOC’s lawsuit, Tesla has failed to adequately investigate complaints of racial misconduct and has taken retaliatory measures against employees who reported harassment.

The lawsuit marks an escalation of federal charges following prior discrimination claims by the state of California and lawsuits brought by Tesla workers. Settlement negotiations with the EEOC broke down after the agency officially raised concerns last year.

Tesla is currently facing several race discrimination lawsuits that make similar allegations, including a class-action lawsuit filed by Fremont plant employees and a lawsuit by a California civil rights agency. In response to these claims, the company has consistently asserted its commitment to preventing discrimination and addressing employee complaints.

As of now, Tesla has not provided an immediate response to the latest lawsuit.

Stephen Diamond, a law professor at Santa Clara University, commented on the situation, saying, “If the federal government gets involved, it certainly adds credibility to the claims. Major institutional investors like pension funds will be very concerned about this type of behaviour.”

The EEOC’s investigation into Tesla began after the commission’s chair, Charlotte Burrows, filed an internal complaint against the company. Last year, the agency determined that there was “reasonable cause” to believe Tesla had violated federal laws prohibiting racial discrimination in the workplace, but attempts to reach a settlement agreement with the company proved unsuccessful.

In a statement, Chair Charlotte Burrows affirmed the EEOC’s commitment to combating workplace harassment: “Every employee deserves to have their civil rights respected, and no worker should endure the kind of shameful racial bigotry our investigation revealed.”

The EEOC’s lawsuit seeks compensatory and punitive damages for an unspecified number of affected Black workers, in addition to an order mandating Tesla to reform its anti-discrimination and anti-retaliation policies.

Tesla faces similar allegations from the California Department of Civil Rights, a state-level counterpart of the EEOC, which claims that Tesla discriminated against Black workers in decisions related to compensation, promotions, and work assignments. A California judge rejected Tesla’s attempt to dismiss this case last year.

Tesla has contended that the California department’s lawsuit is politically motivated and has argued that the agency violated state law by filing the suit without prior notification of all claims or an opportunity to settle.

In a separate case, Owen Diaz, a former Black elevator operator at the Fremont plant, is seeking a third trial in his 2017 lawsuit alleging severe racial harassment. A jury awarded him $3.2 million in April, following a prior award of $137 million in 2021, which a federal judge deemed excessive. Diaz opted for a new trial instead of accepting a reduced award of $15 million.

Furthermore, Tesla is currently facing a class-action lawsuit in a California state court over allegations of mistreatment of Black factory workers, with approximately 240 workers seeking to join the lawsuit.