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Ex-Tesla employee seeks do-over after $137M jury award gets reduced $97.6%

(Credit: Tesla)

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Tesla’s legal dispute with a former contract worker who accused the company of racial discrimination isn’t over just yet. In a recent update, Owen Diaz, who previously worked as an elevator operator at the Fremont Factory, indicated that he is seeking another retrial.

Diaz, who was awarded $3.2 million in a second trial over alleged racial abuse he experienced while working at Tesla, claimed that the trial proceedings were affected by unjustifiable character attacks from Tesla’s attorney. Tesla, for its part, is requesting a 45% reduction in the punitive damages awarded to Diaz, dubbing them “manifestly erroneous.”

Diaz’s case against Tesla caught headlines when he received a $137 million jury verdict in 2021. The former contract employee had claimed that he endured numerous racial attacks while working at the California plant. The substantial $137 million award was one of the largest ever for an individual suing over discrimination in the US.

However, while the $137 million jury verdict was historic, a judge later noted that the maximum compensation Diaz was entitled to was $15 million. Diaz refused to accept the judge’s stance, which ultimately led to a retrial. The retrial resulted in a $3.2 million verdict, 97.6% smaller than the initial $137 million jury verdict.

In a court filing, Diaz’s attorneys described the case’s retrial as flawed. The former Tesla contract worker’s legal team accused the company’s attorney, Alex Spiro, of calling them “phony civil rights lawyers” and repeatedly disparaging Diaz. Diaz’s legal team further claimed that Spiro violated trial regulations by introducing prohibited evidence, incorrectly questioning Diaz’s witnesses, and suggesting that Tesla had already compensated Diaz.

Diaz’s attorney, Michael Rubin, argued that the judge’s instructions to the jury to set the record straight on the matter ultimately ended up “highlighting Tesla’s poisonous messaging.” “There was no meaningful way to wipe Tesla’s improper accusations and suggestions from the jury’s consciousness,” Rubin noted, as noted in a Bloomberg News report.

Diaz’s legal team is requesting US District Judge William Orrick to order a new trial. The lawyer also noted that Tesla’s “misconduct” is the only plausible explanation behind the drastic reduction of the $137 million jury award since the case’s underlying facts have not changed.

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Tesla and its attorney, Alex Spiro, are yet to issue a comment on the matter.

Interestingly, Tesla has noted in its own court filing that the $3 million in punitive damages awarded by the jury is constitutionally disproportionate to Diaz’s relatively modest compensatory damages. A similar argument was made by Tesla when it challenged the case’s original $137 million jury verdict. Tesla has stated that Diaz should receive no more than $1.75 million in total damages.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads-up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla reveals plans for Robotaxi charging hub in Austin

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Credit: Grok Imagine

Tesla has revealed plans through permit submissions for a massive Robotaxi charging hub in Austin, Texas.

Tesla plans to build the Supercharger hub in multiple phases, with the second phase potentially introducing wireless induction charging, something the company has been developing for the Robotaxi fleet.

Initially, 48 Tesla Robotaxi-geared Superchargers will be built on a lot just across from the St. Elmo, Texas, Service Center. There are about 80 additional spots that will not be impacted by phase 1 of the construction process.

Filings show that the second phase of the project will turn those 80 additional spots into wireless charging for Robotaxi, but it might be an error. The Key Notes state that item 3 is listed as “V4 Charging Cabinet to Support 80 Wireless Chargers in Phase 2. However, the drawings point to V3 Cabinets that are already tied to Superchargers:

There are roughly 128 total spots in the lot, but it is unclear if they will all be used for charging based on what appears to be some sort of typo in the blueprint.

This is among the first Robotaxi charging hubs Tesla has started to develop, as it currently has four others planned throughout various areas: one in Phoenix, one in San Antonio, another in Irving, which will serve the Dallas-Fort Worth area, and another in Las Vegas.

These projects are necessary as Tesla expands its Robotaxi program. Now that preparations have started for the public launch of Cybercab, Robotaxi will likely be expanding aggressively, especially over the next two to three years.

Last night, The Information reported that Tesla was planning to launch Cybercab as soon as the end of August. Hours later, Tesla then announced it was launching a competition for fans to potentially ride in Cybercab during its first public rides.

Tesla Cybercab launch preparations have begun

Tesla’s plan to expand its charging infrastructure in the regions where Robotaxi will initially operate is great preparation for the expanding service. There is still a lot to do, including launching the Cybercab on time.

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Tesla Semi gets its largest order yet

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Credit: Einride

Tesla got its largest order for the all-electric Class 8 Semi yet, a 500-unit order from Einride AB, a Swedish trucking company.

Einride made the announcement this morning following its second-quarter earnings call. The company said it plans to use 500 Tesla Semi units on its fleet intelligence platform, called Saga AI. The deployments will serve large companies like Amazon and will extend Einride’s electric freight network across logistics routes in California, New Jersey, Texas, Illinois, and Georgia.

The deployment is being carried out in several phases over the next two years as Tesla ramps production of the Semi at its dedicated production facility in Sparks, Nevada. Einride will receive its first Semi units in September.

Saga AI

Saga AI is Einride’s dedicated fleet intelligence platform. It enables scaled adoption of electric trucks for freight use and allows shippers to integrate electric capacity without the operational burden or capital risks of managing a fleet. This helps integrate cost-efficient logistics and makes budgeting and forecasting much more accurate.

Tesla Semi’s Adoption

The Tesla Semi is now gathering large-scale clients past those who have helped the company operate a Pilot Program to gain initial information and feedback from real-world drivers.

Perhaps the biggest and most notable is that of Frito-Lay and PepsiCo., who have worked with Tesla for the past several years to dial in the finer details of the truck, including its efficiency and operation-related components.

Tesla Semi gets strange-but-understandable comparison from Jay Leno

There has been tremendous progress in that time, and it even catalyzed Tesla to make some design changes, which were unveiled earlier this year.

But Einride CEO Roozbeh Charli says his company’s partnership with Tesla will continue to push those things forward:

“This deployment is yet another proof point that we can execute at the scale our customers demand. Working closely with Tesla to bring next-generation Semis into active operations quickly and at scale is a testament to the strength of that partnership, and how quickly this technology is maturing from promise to daily operations.”

Tesla Semi is already winning over truck drivers

Additionally, Dan Priestley, the Director of the Semi Program at Tesla, said the partnership is ideal due to Einride’s focus on sustainable transport:

“Einride is at the forefront of sustainable freight, and we are thrilled to deepen our relationship with them through this order of 500 Semis. EV heavy trucks provide lower costs per mile from fuel savings, reduced maintenance, and better uptime over diesel trucks. These savings increase further through operational efficiency when deploying EV trucks at scale, and we are excited that Einride recognizes this and look forward to supporting their deployments.” 

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India tells Elon Musk’s X to “Follow the Law” in latest censorship update

Elon Musk says X now exposes government censorship, but India’s secrecy laws complicate that promise.

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Elon Musk’s promise to make government censorship requests on X “clearly visible” is running into a wall in India, where the law forbids the very disclosure Musk is promising.

On August 15, Musk responded to an update from X’s open-source algorithm team by writing “Any censorship required by governments is now clearly visible.” The claim referred to a change X pushed two days earlier to its public xai-org/x-algorithm repository, which now includes a controversial filter written directly into the code. The filter suppresses posts from 665 accounts flagged by Brazil’s Superior Electoral Court from appearing in the For You feed of any viewer located in Brazil, unless the viewer already follows the account. The election tied to the filter is scheduled for October 4.

India’s government wasn’t as impressed, and responded on Monday that “X will have to follow the law of the land,” in response to Musk’s transparency push covered by the Times of India. The problem is structural rather than political. India issues content blocking orders under Section 69A of its IT Act, and Rule 16 of the accompanying 2009 Blocking Rules requires those orders to stay confidential. Publishing an India equivalent of the Brazil filter, naming specific accounts and citing specific government orders, would itself violate Indian law. Government use of Section 69A has grown from roughly 6,000 orders a year between 2018 and 2023 to about 24,300 in 2025, according to a Tech Times report.

Elon Musk shares details on X vs. Brazil conflict

The contrast puts Musk’s transparency pledge in an odd spot. It works largely as advertised in Brazil, where electoral law requires disclosure and X can point to specific account IDs and a specific court order in public code. It cannot work the same way in India, where the law requires the opposite. X users in India will keep seeing content disappear from search and their feeds without any public accounting of why, even as X tells the rest of the world that its censorship compliance is now inspectable.

This isn’t the first time X’s fights with a national government have shaped how the platform operates. Brazil’s Supreme Court ordered X to suspend the accounts of sitting lawmakers and journalists in 2024, a standoff that cost X its Brazilian revenue for months and froze Starlink’s local accounts before the investigation into Musk and X was closed in March with no evidence of wrongdoing found. X also sued California over a state law requiring moderation disclosures, arguing the mandate itself violated the First Amendment.

Whether India’s government pursues anything beyond a public statement remains to be seen. For now, the mismatch between what X can legally publish and what different governments legally allow it to publish is the real story behind Musk’s seven word claim.

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