State Court Order Clears Path for Tesla Race Discrimination Case to Go to Trial

SACRAMENTO – The California Civil Rights Department (CRD) today issued the following statement on the Alameda County Superior Court’s order rejecting Tesla’s latest attempt to avoid accountability over claims of anti-Black harassment, discrimination, and retaliation:

“Tesla claims to be built on the promise of creating a more sustainable future,” said CRD Director Kevin Kish. “But its employment practices remain rooted in some of the ugliest relics of the past. Black workers are paid less for their work. They are subjected to racist slurs. They face threats of being fired for speaking out. In California, we will not and cannot allow these alleged practices to continue. We look forward to having our day in court to hold Tesla accountable and to protect the rights of workers in our state.”

Case Background

After approximately three years of investigation, CRD sued Tesla in 2022 alleging harassment, discrimination, and retaliation, as well as other claims, against the company’s Black employees. These allegations included the pervasive use of racial slurs, often in the presence of, or even by, supervisors and managers. The use of the n-word was allegedly especially pervasive at the Fremont factory, which Tesla workers, supervisors, and management alike referred to as the “plantation,” with Black workers as “slaves.”

In addition to the rampant harassment, Black workers were relegated to labor-intensive jobs, segregated, and paid less than non-Black workers. For example, one analysis of worker pay data from June 2018 through June 2024 showed that Black workers’ monthly compensation was $1,533 lower than that for white workers. When Black workers complain about these conditions, they have faced retaliation in the form of overly harsh performance reviews, reprimands, and termination.

As part of the lawsuit, CRD alleges that Tesla, despite knowing about these issues, has repeatedly failed to prevent or correct the rampant and ongoing racial harassment and discrimination at its California locations.

What Now?

In a newly issued court order, the Alameda County Superior Court has denied Tesla’s latest attempt to have the department’s lawsuit thrown out. The order holds that CRD’s evidence shows there are factual issues for a jury to decide as to whether Tesla is liable for systemic anti-Black harassment, discrimination, and retaliation. As a result, the case is currently on track to go to trial on July 20.

If you or someone you know has experienced employment discrimination, CRD may be able to assist you through its complaint process. The department also provides general information and factsheets online about civil rights protections for members of the public.

Workers who wish to contact CRD with respect to Tesla’s racially discriminatory practices can call (510) 789-1058 or email Tesla@calcivilrights.ca.gov.

You can learn more about the case by reading CRD’s opposition brief and the court’s order. Additional information is available in the department’s underlying lawsuit.

The California Civil Rights Department (CRD) is the state agency charged with enforcing California’s civil rights laws. CRD’s mission is to protect the people of California from unlawful discrimination in employment, housing, public accommodations, and state-funded programs and activities, and from hate violence and human trafficking. For more information, visit calcivilrights.ca.gov.

View Press Release (PDF) State Court Order Clears Path for Tesla Race Discrimination Case to Go to Trial