TSLA336.870-2.43%
GM83.710-0.66%
F13.945-0.1%
RIVN14.780-0.09%
CYD45.630-0.8%
HMC31.9500.05%
TM188.250-0.93%
CVNA65.000-5.09%
PAG216.210-1.74%
LAD356.550-12.97%
AN196.900-8.06%
GPI250.010-9.67%
ABG203.940-4.6%
SAH77.310-2.95%
TSLA336.870-2.43%
GM83.710-0.66%
F13.945-0.1%
RIVN14.780-0.09%
CYD45.630-0.8%
HMC31.9500.05%
TM188.250-0.93%
CVNA65.000-5.09%
PAG216.210-1.74%
LAD356.550-12.97%
AN196.900-8.06%
GPI250.010-9.67%
ABG203.940-4.6%
SAH77.310-2.95%
TSLA336.870-2.43%
GM83.710-0.66%
F13.945-0.1%
RIVN14.780-0.09%
CYD45.630-0.8%
HMC31.9500.05%
TM188.250-0.93%
CVNA65.000-5.09%
PAG216.210-1.74%
LAD356.550-12.97%
AN196.900-8.06%
GPI250.010-9.67%
ABG203.940-4.6%
SAH77.310-2.95%

Tesla faces a new race-bias lawsuit from former employee

Tesla was found accountable for race discrimination after the trial in 2021.
Tesla lawsuit

A trial to decide how much money Tesla must pay to a Black elevator operator who was found by a jury to have experienced severe racial discrimination while working at the electric automaker’s flagship assembly plant began in federal court in San Francisco.

The five-day trial is expected to begin on March 27. One of the highest verdicts ever in a U.S. workplace discrimination case, $137 million, that the jury handed out to plaintiff Owen Diaz in 2021 was reduced by a judge last year. Lawyers for Diaz ultimately down the reduced settlement and chose to retry the case for damages.

Tesla was found accountable for race discrimination after the trial in 2021, but U.S. District Judge William Orrick reduced the verdict to $15 million. This week’s trial is also being presided over by Orrick, who has prohibited both sides from offering new evidence or subpoenaing fresh witnesses.

In his 2017 lawsuit, Diaz charged Tesla with neglecting to take action after he complained to managers that workers at the facility frequently used racist insults and scrawled swastikas, racist caricatures, and epithets on walls and workstations.

According to a California law that forbids employers from failing to avoid hostile work conditions based on race and other protected characteristics, Diaz sued Tesla for causing him emotional distress.

In 2021, the jury gave Diaz nearly $7 million in compensatory damages for emotional distress and $130 million in punitive damages, which are intended to punish and deter future unlawful behavior.

Orrick claimed that amount recognized the pervasive harassment Diaz endured while also taking into account the fact that Diaz had only been employed at the factory for nine months and had made no claims of physical harm or illness.

However, Tesla has stated that it does not tolerate discrimination. The automaker had requested Orrick to limit the jury’s initial award to no more than $600,000.

In a class action complaint in California state court and a related case brought by the state’s civil rights monitor, Tesla is also accused of permitting pervasive racial hostility at the Fremont facility. However, both cases are still in their early stages. 

Although the verdict in Diaz’s trial won’t directly impact those lawsuits or other legal proceedings, it might embolden employees to bring new claims against the business as it faces growing opposition to its dominance of the EV market.

Further Reading
More from Articles
AutoVision launches new AI-powered monthly used vehicle report

AutoVision launches AI-powered monthly used vehicle activity tracker

- August 18, 2026
On the Dash: AutoVision's new monthly report covers roughly 95% of used-vehicle activity nationwide, tracking every VIN as it enters, sells and shifts in price. The inaugural edition sets a...
Mtn. View Auto Group acquires Dutch Miller Nissan in Tennessee

Mtn. View Auto Group acquires Dutch Miller Nissan in Tennessee

- August 18, 2026
Mtn. View Auto Group has acquired Dutch Miller Nissan in Bristol, Tennessee, from Dutch Miller Automotive Group. The dealership has been renamed Mtn. View Nissan of Bristol, with Performance Brokerage...
U.S., Canada weigh 15% auto tariff as trade talks intensify

U.S., Canada weigh 15% auto tariff as trade talks intensify

- August 18, 2026
On the Dash: U.S. and Canadian negotiators are considering cutting the tariff on Canadian vehicles from 25% to 15%. Broader North American content deductions could push effective tariffs on some...
Unifor opens contract talks with GM as 30% of Canadian workers remain on layoff

Unifor opens contract talks with GM as 30% of Canadian workers remain on layoff

- August 18, 2026
On the Dash: GM labor talks could affect Canadian production and vehicle supply. Layoffs highlight ongoing uncertainty across GM’s Canadian operations. A new agreement could provide greater clarity on future...
CBT News
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.