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.
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.
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Tesla shares epic 2025 recap video, confirms start of Cybercab production
The cinematic montage, posted by the official Tesla account on X, celebrated the company’s progress in EVs, energy, and Robotaxi development.
Tesla has released an epic year-in-review video for 2025, recapping some of its major achievements from refreshed models to autonomy breakthroughs and production ramps.
The cinematic montage, posted by the official Tesla account on X, celebrated the company’s progress in EVs, energy, and Robotaxi development while looking ahead to an even bigger 2026.
Tesla’s 2025 highlights recap
Tesla has had a busy 2025, as highlighted in the recap video. The video opened with Elon Musk explaining the company’s pursuit of sustainable abundance. A number of milestones were then highlighted, such as the rollout of FSD v14, Optimus’ numerous demos, the opening of the Tesla Diner in Hollywood, LA, the completion of the world’s first autonomous car delivery, and the launch of the Robotaxi network in Austin and the San Francisco Bay Area.
Tesla also highlighted several of its accomplishments over the year. As per the company, the Model Y was the year’s best-selling vehicle globally again, and Teslas became more affordable than ever thanks to the Model 3 and Model Y Standard. Other key models were also rolled out, such as the refreshed Model S and X, as well as the new Model Y, the new Model Y Performance, and the six-seat, extended wheelbase Model Y L.
The Megablock was also unveiled during the year, and the Supercharger Network grew by 18%. Over 1 million Powerwalls were also installed during the year, and the Cybertruck became the first EV truck to get both an IIHS Top Safety Pick+ award and an NHTSA 5-Star safety rating.
Cybercab production confirmed
Interestingly enough, Tesla also confirmed in its 2025 recap video that the production of the Cybercab has started. This bodes well for the vehicle, as it could result in the vehicle really being mass-produced in the first half of 2026. Elon Musk confirmed during the 2025 Annual Shareholder Meeting that Cybercab production should earnestly start around April 2026.
Musk has also noted that the Cybercab will be Tesla’s highest-volume vehicle yet, with the company aiming for an annual production rate of about 2 million units. “If you’ve seen the design of the Cybercab line, it doesn’t look like a normal car manufacturing line,” Musk said earlier this year. “It looks like a really high-speed consumer electronics line. In fact, the line will move so fast that actually people can’t even get close to it.”
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Tesla Cybercab is changing the look of Austin’s roads, and it’s not even in production yet
Videos and photos showed the sleek, two-seat autonomous vehicles navigating traffic.
Even before entering production, Tesla’s Cybercab is already transforming the appearance of Austin’s streets, with multiple prototypes spotted testing in downtown areas recently.
Videos and photos showed the sleek, two-seat autonomous vehicles navigating traffic. Interestingly enough, the vehicles were equipped with temporary steering wheels and human safety drivers.
Recent Cybercab sightings
Over the weekend, enthusiasts captured footage of two Cybercabs driving together in central Austin, their futuristic silhouettes standing out amid regular traffic. While the vehicles featured temporary steering wheels and side mirrors for now, they retained their futuristic, production-intent exterior design.
Industry watcher Sawyer Merritt shared one of the vehicles’ videos, noting the increasing frequency of the autonomous two-seater’s sightings.
Previewing the autonomous future
Sightings of the Cybercab have been ramping in several key areas across the United States in recent weeks. Sightings include units at Apple’s Visitor Center in California, the Fremont factory test track, and in Austin’s streets.
The increased activity suggests that Tesla is in overdrive, validating the autonomous two-seater ahead of its planned volume production. Elon Musk confirmed at the 2025 Shareholder Meeting that manufacturing begins around April 2026 with ambitious targets, and during an All-Hands meeting earlier this year, Musk hinted that ultimately, Tesla’s factories should be able to produce one Cybercab every 10 seconds.
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Tesla celebrates 9 million vehicles produced globally
The achievement, announced by Tesla Asia on X, celebrated not just the Shanghai team’s output but the company’s cumulative production across all its factories worldwide.
Tesla has achieved a new milestone, rolling out its nine millionth vehicle worldwide from Giga Shanghai.
The achievement, announced by Tesla Asia on X, celebrated not just the Shanghai team’s output but the company’s cumulative production across all its factories worldwide. The milestone came as 2025 drew to a close, and it inspired praise from some of the company’s key executives.
Tesla’s 9 million vehicle milestone
The commemorative photo from Tesla Asia featured the Giga Shanghai team assembled on the factory floor, surrounding the milestone Model Y unit, which looked pristine in white. The image was captioned: “Our 9 millionth vehicle globally has just rolled off the production line at Giga Shanghai. Thanks to our owners and supporters around the world.”
Senior Vice President of Automotive Tom Zhu praised Tesla’s factory teams for the remarkable milestone. He also shared his gratitude to Tesla owners for their support. “Congrats to all Tesla factories for this amazing milestone! Thanks to our owners for your continued support!” Zhu wrote in a post on X.
Giga Shanghai’s legacy
Tesla’s nine million vehicle milestone is especially impressive considering that just 207 days ago, the company announced that it had built its eight millionth car globally. The eight millionth Tesla, a red Model Y, was built in Giga Berlin. The fact that Tesla was able to build a million cars in less than seven months is quite an accomplishment.
Giga Shanghai, Tesla’s largest factory by volume, has been instrumental to the company’s overall operations, having reached four million cumulative vehicles earlier in 2025. The plant produces Model 3 and Model Y for both domestic Chinese and export markets, making it the company’s primary vehicle export hub.
Tesla shares epic 2025 recap video, confirms start of Cybercab production
Tesla Cybercab is changing the look of Austin’s roads, and it’s not even in production yet
