Tesla in trouble again, sued for racial discrimination by US Civil Rights Agency

Tesla has been sued for racial discrimination by US Equal Employment Opportunity Commission which has alleged that the electric car brand is guilty of ignoring a hostile work environment for minorities at its plant in California.

By: HT Auto Desk
| Updated on: 29 Sep 2023, 10:37 AM
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File photo of the Tesla logo. Image has been used for representational purpose. (REUTERS)
File photo of the Tesla logo. Image has been used for representational purpose.

Tesla has been previously accused by former employees of ignoring complaints of racial discrimination at its Fremont factory. While the company has strongly denied such charges, it is the US Equal Employment Opportunity Commission that is taking on the Elon Musk-led company. It has been alleged by the agency that Tesla has subjected Black workers ‘to severe or pervasive racial harassment’ while also taking retaliatory action against those who registered official complaints.

Tesla has also faced the ire from California’s civil rights agency which had previously accused the company of turning a blind eye to complaints made by Black employees of ‘rampant racism.' The case of Owen Diaz was under the spotlight for quite some time. Diaz filed a lawsuit against Tesla in 2017 in which he said he was subjected to racist abuse and a hostile work environment. A court had ordered Tesla to pay him $137 million in a trial that ended in October of 2021. He rejected the offer and sought a re-trial. In this, Tesla would eventually be asked to pay $3.2 million. It was seen by many as a win for Tesla although the hurt to the brand image continues.

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Also Read : Tesla asked to pay millions to former employee

The plant at Fremont rolls out some very popular Tesla models like Model 3, Model S, Model Y and Model X. But even though Tesla continues to hit new sales and production highs with passing time, all may not be well with everyone tasked to be a part of the manufacturing facility.

(With inputs from Bloomberg)

First Published Date: 29 Sep 2023, 10:37 AM IST
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