Elon Musk faces a new lawsuit from Tesla investor over workplace discrimination

Elon Musk has been accused of neglecting the issue of workplace harassment and discrimination.
By : HT Auto Desk
| Updated on: 20 Jun 2022, 09:33 AM
Tesla's toxic workplace culture has caused financial harm and irreparable damage to the company's reputation, claims the lawsuit against Elon Musk. (REUTERS)
Tesla's toxic workplace culture has caused financial harm and irreparable damage to the company's reputation, claims the lawsuit against Elon Musk. (REUTERS)
Tesla's toxic workplace culture has caused financial harm and irreparable damage to the company's reputation, claims the lawsuit against Elon Musk. (REUTERS)
Tesla's toxic workplace culture has caused financial harm and irreparable damage to the company's reputation, claims the lawsuit against Elon Musk.

Tesla CEO Elon Musk is facing a new lawsuit from an investor of the EV company over the workplace discrimination and harassment the automaker has been accused of. A Reuters report claims that Tesla investor Solomon Chau has sued Elon Musk and the automaker's board over the alleged workplace discrimination and harassment, accusing them of neglecting to tackle complaints about the issue. He also accused Musk and the Tesla board of engendering a toxic workplace culture. This comes as the latest legal trouble for Tesla, which has been accused of racial discrimination and sexual harassment in its plants.

(Also Read: Tesla can come to India but needs to follow govt policies: Minister)

Solomon Chau has said that the automaker has created a toxic workplace culture grounded in racist and sexist abuse and discrimination against its own employees, claims the report. "This toxic work environment has gestated internally for years, and only recently has the truth about Tesla's culture emerged," the investor added in the lawsuit.

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Chau also said that Tesla's toxic workplace culture has caused financial harm and irreparable damage to the company's reputation. Tesla's involvement in the case created quite an uproar. However, Tesla said that it doesn't tolerate discrimination and has taken steps to tackle workers' complaints.

The lawsuit accuses Musk and 11 board members of the company of having breached their fiduciary duty by failing to address and resolve the issues concerning internal reports of discrimination and harassment. This incident caused the EV manufacturer to lose high-value employees and incur costs for defending cases and settling fines for violations, claimed the lawsuit.

Tesla has been facing a wide range of troubles over the last few months. Elon Musk too has faced several lawsuits over variable accusations over the last few months. The new lawsuit comes as the latest in the list.

First Published Date: 20 Jun 2022, 09:31 AM IST
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