Key facts
- Tesla faces a trial over allegations of race discrimination at its Fremont, California plant.
- The California Civil Rights Department alleges Black workers experienced racist slurs, graffiti, unequal pay, and fewer promotions.
- The lawsuit claims the factory was racially segregated and Black workers were paid less and promoted less frequently than white counterparts.
- Tesla denies the allegations, stating it disciplines employees for misconduct and that its Fremont factory has a majority-minority workforce.
- The trial is a bench trial, meaning Judge Peter Borkon will decide liability.
- The trial is expected to continue through the end of October.
Tesla is on trial in Oakland, California, facing a lawsuit from the state's Civil Rights Department that accuses the electric vehicle maker of allowing rampant race discrimination and harassment at its flagship Fremont assembly plant. The trial, which began with opening statements on Monday and is expected to continue through the end of October, will be presided over by State Superior Court Judge Peter Borkon, who will decide liability in a bench trial.
The lawsuit, filed in 2022, alleges that Black workers at the Fremont plant were subjected to pervasive harassment, including racial slurs and graffiti, by other employees. Brett Watson, a lawyer for the California Civil Rights Department, told the court that hundreds of complaints to Tesla and the department showed these experiences were not isolated, with workers referring to the factory as a "slaveship," "the plantation," and "The Elon Slave Labor Association." Watson presented evidence of racist graffiti found in bathrooms, lockers, and on workplace surfaces.
The department also claims Tesla failed to prevent or stop this misconduct, paid Black workers less than others, and denied them promotion opportunities. The suit further includes allegations that the Fremont plant was racially segregated, with Black workers assigned to the lowest-paying and least desirable jobs.
Tesla has denied wrongdoing, calling the lawsuit "misguided" and stating it has always disciplined and terminated employees who engage in misconduct. Tyree Jones, lead lawyer for Tesla, argued that the state's lawsuit attacks how many Black people greet each other and that the company is being blamed for the actions of individuals, not management. Tesla also highlighted its majority-minority workforce and competitive wages.
This trial is the first government-led lawsuit against Tesla on behalf of dozens of workers and could have sweeping consequences for the company. It is one of many discrimination suits brought against Tesla, including a case from the Equal Employment Opportunity Commission, and follows a 2022 federal jury award of $137 million to a former employee for discrimination claims, which was later reduced.