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A newly filed lawsuit alleges that Tesla subjected Black workers to slurs, racist graffiti and racial segregation at the electric-vehicle maker's California manufacturing facility.
The California Department of Fair Employment and Housing on Thursday filed the civil rights lawsuit on behalf of thousands of Black workers against Tesla, a $1 trillion company founded by Elon Musk, one of the world's richest men.
"After receiving hundreds of complaints from workers and a nearly three-year
investigation, (the department) found evidence that Tesla operates a racially segregated workplace where Black workers are subjected to racial slurs and discriminated against in job assignments, discipline, pay, and promotion," department Director Kevin Kish, said in a statement.
The department told Newsweek in an email that the lawsuit is the largest case involving racial discrimination in terms of the number of affected workers since the department was given prosecutorial authority in 2013.
The 39-page lawsuit, filed in Alameda Superior Court, alleges Black workers at Tesla's Fremont, California, facility were assigned the lowest and most physically demanding jobs and paid less than their white counterparts. Managers routinely referred to them as the n-word, as well as other slurs.
"Tesla strongly opposes all forms of discrimination and harassment and has a dedicated Employee Relations team that responds to and investigates all complaints," the company said in a blog post Wednesday titled "The DFEH's Misguided Lawsuit."
In the post, the company pointed to its training efforts to reinforce respect among employees while offering them ways to report concerns. It also said it always disciplines or terminates employees who engage in misconduct or use racial slurs.
Last month, Tesla relocated its headquarters to Austin, Texas. The company said in the post that Tesla is the last automobile manufacturer in California and its majority-minority workforce factory provides the "best paying jobs in the automotive industry to over 30,000 Californians."
"No company has done more for sustainability or the creation of clean energy jobs than Tesla," the company said. "Yet, at a time when manufacturing jobs are leaving California, the DFEH has decided to sue Tesla instead of constructively working with us. This is both unfair and counterproductive, especially because the allegations focus on events from years ago."
Founded in Palo Alto, California in 2003, Tesla employs more than 36,200 direct workers in California, as well as thousands of contract workers, according to the department.
The lawsuit states Black workers began complaining as early as 2012. However, Tesla ignored complaints from Black workers about racial harassment for nearly a decade while subjecting them to harsher discipline, passing them up for promotions and retaliating against those who complained, according to the lawsuit.
The company also assigned Black workers difficult menial jobs like cleaning the factory floor on their hands and knees, according to the lawsuit. The factory was so racially segregated that some areas were referred to as "the dark side," according to the lawsuit.
A 2018 New York Times article referenced by the lawsuit describes alleged racial harassment workers faced at the Fremont facility.
The article references a previous email from Musk sent to employees that cautioned against "being a huge jerk" to members of "a historically less represented group." Musk added, "if someone is a jerk to you, but sincerely apologizes, it is important to be thick-skinned and accept that apology."
The lawsuit seeks an unspecified amount for compensatory and punitive damages for the affected workers.
Newsweek has reached out to the California Department of Fair Employment and Housing and Tesla for additional comment.
About the writer
Jake Thomas is a Newsweek night reporter based in Portland, Oregon. His focus is U.S. national politics, crime and public ... Read more