Tesla faces a new lawsuit alleging severe harassment of Black employees at its Fremont, California factory, as filed by a federal civil rights agency this week.
On Thursday, the U.S. Equal Employment Opportunity Commission (EEOC) filed a lawsuit against Tesla in federal court, claiming that, since 2015, the company’s Black workers have been subject to racist slurs and graffiti, including images of swastikas and nooses, according to a report from Reuters.
The suit is just the latest in allegations of racial discrimination at the automaker’s Fremont, California factory, and it comes just over a week after another lawsuit claiming toxic work environments at Tesla’s factories was dismissed.
According to this week’s lawsuit, Tesla hasn’t investigated the claims of racist conduct since the EEOC first raised them, and it also claims that the automaker has fired some employees who reported cases of harassment. Tesla has said in the past that it doesn’t tolerate any racial discrimination, adding that it takes complaints from its workers very seriously.
The lawsuit comes after it was found that the EEOC was investigating Tesla last year, with the agency saying that it discovered “reasonable cause” to believe the automaker went against federal discrimination laws. The EEOC then tried to enter into a settlement with Tesla, though discussions to settle reportedly failed. Investigations began when EEOC chair Charlotte Burrows filed an internal complaint with the commission, considered a charge against Tesla.
“Every employee deserves to have their civil rights respected, and no worker should endure the kind of shameful racial bigotry our investigation revealed,” Burrows said.
Reuters notes that the EEOC typically settles lawsuits directly with employers, adding that it’s somewhat uncommon for the agency’s cases to make it to trial.
The suit also represents the first set of federal charges brought against Tesla for allegations of racial discrimination, with similar lawsuits previously arising from the state of California and past employees. Stephen Diamond, a Santa Clara University law professor who has previously advised Tesla investors on social responsibility, notes that the escalation to the federal level could make it harder for the automaker to defend itself against allegations of discrimination.
“If the federal government gets involved, it certainly adds credibility to the claims,” Diamond said. “Major institutional investors like pension funds will be very concerned about this type of behavior.”
The lawsuit is seeking to make Tesla pay compensation and punitive damages to an unspecified number of its Black workers at the Fremont location, and it would also force the automaker to improve policies related to discrimination and retaliation.
Tesla also faces a racial discrimination case from the California Civil Rights Department (DCR), which is considered a counterpart of the EEOC’s on the state level. That particular suit alleges that Tesla discriminated against Black workers in decisions about wages, promotions and general work assignments. Tesla requested that the DCR dismiss the case last year, saying it was politically motivated, though a judge denied the request.
In addition, a former Black contract elevator operator at the Fremont factory, Owen Diaz, is now seeking his third trial with Tesla from a 2017 lawsuit alleging racial discrimination. In the suit, Diaz said he was told to “go back to Africa” and was called the N-word without any action taken by the automaker despite his repeated complaints. A jury awarded Diaz $3.2 million in April after he rejected a separate payout in 2021 that the judge had reduced from $137 million to $15 million.
Tesla is also facing a class-action lawsuit from around 240 employees in California, claiming that the company mistreated Black workers at the Fremont factory.
Former Tesla employee looks to add almost 240 plaintiffs in racism lawsuit
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.
News
T-Mobile’s Starlink cellular doubles as free 5G trial for rival users

T-Mobile’s Starlink cellular is set to deliver satellite connectivity to users on rival carriers. The Starlink cellular beta program could double as a free trial for T-Mobile’s 5G network, blending space-based innovation with a strategic push to attract new customers. T-Mobile’s Starlink cellular service will launch soon, aiming to showcase both Starlink’s capabilities and T-Mobile’s terrestrial network.
“The wait is almost over,” T-Mobile announced in a Wednesday email to those who signed up for free beta access to the cellular Starlink service. “Our phone partners have been hustling to get more phones satellite-optimized, and in just a couple weeks, you’ll be invited to the beta.”
The Starlink cellular program includes “50GB of high-speed data and unlimited texts,” offering a robust test of T-Mobile’s 5G network alongside Starlink’s satellite connectivity. This package mirrors T-Mobile’s existing three-month free trial, which provides 50GB of premium mobile data via eSIM, allowing users to try T-Mobile without switching from their current provider.
Starlink cellular’s availability to rival carrier users via eSIM is a key draw, enabling seamless access to T-Mobile’s network and Starlink’s satellite service. T-Mobile sweetens the deal with perks like “$5 movie tickets, 25% off concert tickets, travel discounts, and T-Mobile Tuesdays for free stuff and great perks every week.” These incentives underscore T-Mobile’s strategy to convert beta testers into full-time customers.
Last week, T-Mobile reduced Starlink cellular’s price to $10 per month for both its customers and those on rival carriers, enhancing affordability. The company’s exclusive U.S. partnership with SpaceX gives it a head start in satellite connectivity. Meanwhile, competitors AT&T and Verizon, collaborating with AST SpaceMobile, may lag by a year or two due to fewer satellites.
By offering rival carrier users a free trial of its 5G network through the Starlink cellular beta program, T-Mobile positions itself as a leader in terrestrial and satellite connectivity. The initiative highlights the potential of SpaceX’s Starlink and leverages T-Mobile’s network strengths to capture a broader market, setting the stage for a new era of hybrid connectivity.
Elon Musk
Elon Musk’s OpenAI lawsuit clears hurdle as trial looms
Elon Musk says OpenAI betrayed its nonprofit mission. Who should steer AI’s future—visionaries or shareholders?

Elon Musk’s lawsuit against OpenAI and CEO Sam Altman has cleared a major hurdle. Judge Yvonne Gonzalez Rogers of the Northern District of California recently rejected OpenAI’s bid to dismiss the case, setting the stage for a high-stakes trial over the AI giant’s for-profit conversion. The ruling intensifies the rivalry between two tech titans vying for dominance in artificial intelligence (AI).
Elon Musk is an OpenAI co-founder who provided significant early funding. In the lawsuit, Musk alleged that OpenAI’s shift from a non-profit to a for-profit entity violates contractual obligations and constitutes fraud. Last year, The lawsuit was filed against Altman, OpenAI, and its key investor, Microsoft, aiming to block the conversion to a for-profit company.
In March, a ruling denied Musk’s request for a preliminary injunction. However, Judge Rogers recently expedited the trial and set it for March 2026. On Thursday, she dismissed some claims but upheld key allegations, allowing the case to proceed.
“Musk adequately alleges that the defendants promised to maintain OpenAI’s non-profit status and structure in order to obtain his contributions and that they intended to do so in order to obtain the capital needed to create a for-profit venture to enrich themselves,” Gonzalez Rogers wrote.
She also rejected OpenAI’s attempt to dismiss Musk’s claim of an implied contract. “Although there is no express contract, Musk adequately pleads in the alternative that there is an implied-in-fact contract,” the California judge noted.
“In the world of litigation, this is a big win,” said a person close to Musk, highlighting the retention of “big-ticket items” like the fraud allegation.
OpenAI, which can appeal the decision, countersued Musk last month. It claims Musk’s lawsuit is a “bad-faith” effort to hinder its progress and benefit his AI venture, xAI.
OpenAI’s push to become a for-profit public benefit corporation aims to streamline fundraising but has sparked a backlash from AI experts like Geoffrey Hinton. Former employees warn that OpenAI’s change of direction could prioritize profits over its mission to advance AI for humanity’s benefit.
Financial Times attempted to contact OpenAI and its biggest investor, Microsoft. OpenAI declined to comment, and Microsoft did not respond.
As Elon Musk and OpenAI head toward trial, the outcome could reshape the AI landscape, with implications for governance, innovation, and the balance between profit and public good.
News
Neuralink device gets FDA recognition for speech restoration
Neuralink device gets FDA’s ‘breakthrough’ designation. With Link, a man with ALS now types, navigates, and speaks.

Neuralink’s brain-computer interface (BCI) device, Link, has secured the U.S. Food and Drug Administration’s (FDA) “breakthrough” designation for restoring communication in patients with severe speech impairment. This milestone advances Elon Musk’s vision of merging human cognition with technology.
The Link device targets individuals with neurological conditions like Amyotrophic Lateral Sclerosis (ALS), stroke, spinal cord injury, cerebral palsy, and multiple sclerosis. In a recent X video, Neuralink’s third PRIME Study participant, Bradford G. Smith, who lives with ALS, showcased the device’s potential.
Using Link, Smith regained his ability to communicate, leveraging AI to narrate with a synthesized version of his former voice. “I am typing this with my brain,” Smith wrote. “It is my primary communication.”
Smith edited the X video with the help of Link. In the video, he demonstrated how Link enabled him to control a computer cursor to communicate, highlighting the BCI’s ability to interface with external devices.
Before Link, Smith relied on an eye tracker, which limited communication in bright settings and restricted his mobility. Now, Neuralink’s implant enables him to connect more freely. His experience shows Neuralink’s progress in empowering paralyzed individuals and those with neurodegenerative diseases through revolutionary assistive solutions.
The company is also exploring applications for vision restoration and other health challenges. In 2024, Neuralink received the FDA’s ‘breakthrough device’ tag for its Blindsight device. Elon Musk explained that Blindsight would help people who have lost both eyes and function in their optic nerve to see. However, Neuralink’s current focus remains on mobility and communication.
Neuralink recently expanded its patient registry to include participants worldwide. The PRIME Study, likely the primary target for new registrants, tests Link’s base capabilities. Meanwhile, the CONVOY study explores Link’s ability to control robotic devices, like an assistive robotic arm. This broader access underscores Neuralink’s commitment to scaling its trials.
The company is reportedly preparing for a $500 million funding round, with preliminary talks valuing Neuralink at $8.5 billion pre-money and potentially $9 billion post-money, though terms remain fluid. Neuralink has not commented on the speculation about funding.
By earning FDA breakthrough status, Neuralink positions Link as a transformative tool for those with severe speech impairments. Smith’s experience illustrates its potential to restore independence, while ongoing trials and funding efforts signal the company’s ambition to redefine human-technology interaction for neurological conditions and beyond.
-
News2 weeks ago
Tesla’s Hollywood Diner is finally getting close to opening
-
Elon Musk2 weeks ago
Tesla doubles down on Robotaxi launch date, putting a big bet on its timeline
-
News1 week ago
Tesla is trying to make a statement with its Q2 delivery numbers
-
Investor's Corner1 week ago
LIVE BLOG: Tesla (TSLA) Q1 2025 Company Update and earnings call
-
News5 days ago
NY Democrats are taking aim at Tesla direct sales licenses in New York
-
Elon Musk2 weeks ago
Tesla Semi fleet from Frito-Lay gets more charging at Bakersfield factory
-
Elon Musk2 weeks ago
Tesla offers new discounts on Cybertruck inventory
-
Investor's Corner1 week ago
Tesla (TSLA) releases first quarter 2025 earnings results