California trial opens over Tesla racial discrimination allegations

A California bench trial opened Monday over a lawsuit brought by the state against Tesla on behalf of dozens of Black workers at the company’s Fremont factory. The workers allege daily racial slurs, unequal pay, fewer promotions and bullying by supervisors.

State lawyers showed photographs of racist slurs, swastikas, Ku Klux Klan references, a Confederate flag and the phrase “go back to Africa” found around the plant. One worker said he heard racial slurs 50 to 100 times a day.

Filed in February 2022, the lawsuit alleges that Tesla violated California’s Fair Employment and Housing Act. The state also claims the factory was racially segregated and that Black employees were paid less, promoted less often and terminated more frequently than white workers.

The parties’ opening arguments

Brett Watson, representing California, argued that the complaints showed a broader pattern rather than isolated incidents. Tesla denies wrongdoing, calls the case misguided and says it has disciplined or fired employees for racial slurs and harassment.

Tesla lawyer Tyree Jones said the state was attacking the company even though Tesla was the victim of racist graffiti at the plant. He also emphasized Tesla’s role as an electric-car manufacturer and major California employer.

The state then called three former Black Tesla employees. One testified that after another employee allegedly used a racial slur against him, Tesla issued the disciplinary notice to him rather than to the alleged instigator.

Nadia Clark, a former security manager, testified that a white employee called her the N-word more than ten times in succession. She said she reported the incident to human resources, received no response and left Tesla that day.

Bench trial and requested remedies

Judge Peter Borkon is hearing the case without a jury. California is seeking financial damages and an injunction that could require Tesla to change its labor practices and internal policies. The trial is expected to continue through the end of October.

It is the first lawsuit brought by a government agency on behalf of dozens of Tesla workers to reach trial. Legal experts cited in the report said the case could have broad consequences for Tesla because the state is not bound by the same arbitration agreements as individual employees.

Tesla faces dozens of other discrimination lawsuits. In 2022, a federal jury awarded former employee Owen Diaz $137 million, although a judge later reduced the amount. Tesla has denied wrongdoing in those cases as well.