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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.

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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.

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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 Supercharger left offline as Swedish court backs union strike

The completed Supercharger has been stalled for nearly two years amid Tesla’s conflict with the IF Metall union in Sweden.

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Credit: NicklasNilsso14/X

Tesla’s Supercharger station in Ljungby, Sweden will remain without power after a Swedish administrative court rejected the company’s appeal to force a grid connection to the site. The completed Supercharger has been stalled for nearly two years amid Tesla’s conflict with the IF Metall union in Sweden.

The court ruled that the ongoing union strike against Tesla Sweden is valid grounds for the Supercharger’s connection delay, as noted in an Allt Om Elbil report. 

The Ljungby Supercharger was one of the first charging stations that were denied grid access after IF Metall launched its strike against Tesla Sweden in late 2023. Electricians at local grid operator Ljungby Energinät were pulled into a sympathy strike by the Seko union, preventing the site’s connection.

Tesla reported both Ljungby Energinät and Gävle Energi Elnät AB to the Swedish Energy Market Inspectorate, arguing that grid operators failed to meet their legal obligation to provide connection to the location within a reasonable time frame.

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The regulator ruled that the strike represented a valid exception under Swedish law, however, citing constitutional protections for industrial actions.

Tesla responded by appealing to the Administrative Court in Linköping, claiming it had the right to connection within a reasonable period, generally no more than two years. Tesla Sweden also argued that the country’s Electricity Act conflicts with EU law. The court rejected those arguments.

“The Administrative Court today finds that granting the company’s request in practice applies to the same thing as the blockade and that it would mean that the blockade would be ineffective. 

“Such a decision would contradict the principle that labor market conflicts should be resolved to the greatest extent possible by the labor market parties, not by the state. The industrial action is also constitutionally protected,” Chief Councilor Ronny Idstrand stated.

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The court also concluded that the Electricity Act does not conflict with EU regulations and that special reasons justified the extended delay.

While the ruling was unanimous, Tesla Sweden may appeal the decision to a higher administrative court.

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Tesla China exports 50,644 vehicles in January, up sharply YoY

The figure also places Tesla China second among new energy vehicle exporters for the month, behind BYD.

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Credit: Tesla China

Tesla China exported 50,644 vehicles in January, as per data released by the China Passenger Car Association (CPCA).

This marks a notable increase both year-on-year and month-on-month for the American EV maker’s Giga Shanghai-built Model 3 and Model Y. The figure also places Tesla China second among new energy vehicle exporters for the month, behind BYD.

The CPCA’s national passenger car market analysis report indicated that total New Energy Vehicle exports reached 286,000 units in January, up 103.6% from a year earlier. Battery electric vehicles accounted for 65% of those exports.

Within that total, Tesla China shipped 50,644 vehicles overseas. By comparison, exports of Giga Shanghai-built Model 3 and Model Y units totaled 29,535 units in January last year and just 3,328 units in December. 

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This suggests that Tesla China’s January 2026 exports were roughly 1.7 times higher than the same month a year ago and more than 15 times higher than December’s level, as noted in a TechWeb report.

BYD still led the January 2026 export rankings with 96,859 new energy passenger vehicles shipped overseas, though it should be noted that the automaker operates at least nine major production facilities in China, far outnumering Tesla. Overall, BYD’s factories in China have a domestic production capacity for up to 5.82 million units annually as of 2024.

Tesla China followed in second place, ahead of Geely, Chery, Leapmotor, SAIC Motor, and SAIC-GM-Wuling, each of which exported significant volumes during the month. Overall, new energy vehicles accounted for nearly half of China’s total passenger vehicle exports in January, hinting at strong overseas demand for electric cars produced in the country.

China remains one of Tesla China’s most important markets. Despite mostly competing with just two vehicles, both of which are premium priced, Tesla China is still proving quite competitive in the domestic electric vehicle market.

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Tesla adds a new feature to Navigation in preparation for a new vehicle

After CEO Elon Musk announced earlier this week that the Semi’s mass production processes were scheduled for later this year, the company has been making various preparations as it nears manufacturing.

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Credit: Uber

Tesla has added a new feature to its Navigation and Supercharger Map in preparation for a new vehicle to hit the road: the Semi.

After CEO Elon Musk announced earlier this week that the Semi’s mass production processes were scheduled for later this year, the company has been making various preparations as it nears manufacturing.

Elon Musk confirms Tesla Semi will enter high-volume production this year

One of those changes has been the newly-released information regarding trim levels, as well as reports that Tesla has started to reach out to customers regarding pricing information for those trims.

Now, Tesla has made an additional bit of information available to the public in the form of locations of Megachargers, the infrastructure that will be responsible for charging the Semi and other all-electric Class 8 vehicles that hit the road.

Tesla made the announcement on the social media platform X:

Although it is a minor development, it is a major indication that Tesla is preparing for the Semi to head toward mass production, something the company has been hinting at for several years.

Nevertheless, this, along with the other information that was released this week, points toward a significant stride in Tesla’s progress in the Semi project.

Now that the company has also worked toward completion of the dedicated manufacturing plant in Sparks, Nevada, there are more signs than ever that the vehicle is finally ready to be built and delivered to customers outside of the pilot program that has been in operation for several years.

For now, the Megachargers are going to be situated on the West Coast, with a heavy emphasis on routes like I-5 and I-10. This strategy prioritizes major highways and logistics hubs where freight traffic is heaviest, ensuring coverage for both cross-country and regional hauls.

California and Texas are slated to have the most initially, with 17 and 19 sites, respectively. As the program continues to grow, Florida, Georgia, Illinois, Washington, New York, and Nevada will have Megacharger locations as well.

For now, the Megachargers are available in Lathrop, California, and Sparks, Nevada, both of which have ties to Tesla. The former is the location of the Megafactory, and Sparks is where both the Tesla Gigafactory and Semifactory are located.

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