Tesla Faces New Discrimination Lawsuit: A Historic Trial Over Treatment of Black Workers

Tesla is facing a new trial in California starting Monday, accused of allowing widespread racial discrimination against Black workers at its Fremont factory. The case is before the Superior Court in Oakland, with a scheduled conclusion on October 30.

Details of the Lawsuit: Harassment and Unequal Pay

The case dates back to 2022, when California's Civil Rights Department accused Tesla of failing to prevent or stop widespread racial harassment against Black workers at the plant. The department says Black workers were subjected to racial slurs and offensive graffiti on factory walls by other employees, and that Tesla paid them less than their peers and denied them promotion opportunities.

Tesla denies any wrongdoing. The company has previously said it doesn't tolerate discrimination and has fired employees found responsible for misconduct. Neither the company nor its lawyers responded to requests for comment. Judge Peter Borkon will decide the case without a jury.

Financial Risks and a Decade of Similar Claims

Losing the case could cost Tesla millions of dollars in damages, as California law sets no cap on compensation in employment discrimination cases. The company has faced accusations of a hostile work environment at Fremont and other facilities for about a decade.

This trial follows a $137 million payout to a former worker in a similar case, adding to the pressure on the electric automaker.