Tesla has settled a prolonged racial discrimination lawsuit after a former elevator operator, who worked at the company’s Fremont, California factory between 2015 and 2016, won two jury verdicts against the company. The employee, jointly employed by Tesla and two other firms, reported experiencing racial slurs, demeaning treatment, and seeing racist caricatures within the workplace. Following his complaints, he alleged he was demoted and eventually resigned.
In the initial 2021 trial, the jury awarded the employee over $130 million in damages for the racially hostile work environment he endured, but this amount was later reduced to about $15 million by a judge in 2022. Tesla sought a retrial and was met with another defeat, leading to an award of more than $3 million to the former employee.
The lawsuit was part of broader allegations of racism at Tesla’s Fremont facility, which has been described in legal documents as reminiscent of the Jim Crow era. Despite denying these claims, Tesla faces ongoing legal challenges, including suits from the EEOC and the California Department of Fair Employment and Housing (DFEH). These suits accuse Tesla of allowing racial harassment and operating a racially segregated workplace. The company has publicly denied the allegations, asserting its commitment to opposing discrimination and harassment and highlighting its procedures for addressing complaints.
