Tesla faces California trial over racial discrimination claims

Tesla is facing a historic trial in California following a lawsuit by the state’s Civil Rights Department. The agency accuses the electric vehicle manufacturer of allowing pervasive racial harassment and segregation at its Fremont assembly plant.

Legal filings allege that Black employees were subjected to frequent racial slurs, threats, and the presence of swastikas and other hate symbols on factory walls and vehicles. The lawsuit further claims that Black workers were relegated to lower-paying areas, often referred to as ‘the plantation,’ and faced systematic barriers to promotions and pay equity.

Unlike federal cases, California state law does not cap damages for workplace discrimination, meaning Tesla could face significant financial penalties if found liable. The bench trial, overseen by Judge Peter Borkon, is scheduled to continue through October 30. Tesla has denied the allegations, stating it does not tolerate discrimination and has taken disciplinary action against employees found to have engaged in misconduct.