Tesla is facing a lawsuit brought by the state of California over allegations that Black employees at its Fremont factory were subjected to racial harassment, unequal pay and promotion opportunities, and discriminatory treatment.
The bench trial began in California on 21 September, with the California Civil Rights Department alleging that Tesla failed to adequately address repeated complaints of racial discrimination at the facility.
The state presented evidence of racist graffiti allegedly found across the factory, including racial slurs, references to the Ku Klux Klan, swastikas, Confederate symbols and other racist messages. Prosecutors also presented accounts from Black workers who alleged that racial slurs and harassment were directed at employees.
The lawsuit, filed in February 2022, alleges that Black workers at the Fremont facility were paid less, promoted less frequently and terminated more often than white employees. The state has also alleged that the workplace was racially segregated and that Tesla failed to comply with California’s Fair Employment and Housing Act.
The state is seeking financial damages as well as changes to Tesla’s workplace practices and internal policies. The case is being heard by Judge Peter Borkon without a jury, with the trial expected to continue through October.
Tesla has denied wrongdoing and disputed the state’s allegations. The company has said it disciplines or terminates employees who engage in misconduct, including racial harassment, and has argued that its Fremont workforce is majority-minority and that the factory provides highly paid automotive jobs.
Three former Black Tesla employees testified for the state on the opening day of the trial. One former employee, who worked at Tesla from 2021 to 2024, alleged repeated bullying and said the company responded differently to a complaint involving a racial slur. A former senior security manager, who worked at Tesla for six years, also testified about handling discrimination complaints and alleged that he had witnessed Black employees being treated differently from workers of other races.
The case is among the first government-led racial discrimination lawsuits against Tesla involving workers to reach trial and could result in financial penalties as well as changes to the company’s employment practices if the court rules against the company.
