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Tesla’s $137M racial discrimination verdict reduced to $15M

(Credit: Tesla)

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On Wednesday, April 13, United States District Judge William H. Orrick reduced the $137 million reward granted by jurors to former Tesla employee Owen Diaz to $15 million. Diaz had accused Tesla of racial discrimination.

Judge Orrick reduced the award of compensatory damages to $1.5 million and maintained the award for punitive damages to $13.5 million. Previously, the jury awarded Diaz $6.9 million in compensatory damages and $130 million in punitive damages.

“Tesla’s motion for a remittitur—that is, a reduction in the amount of damages—is granted in part. Great deference is owed to the jury’s verdict, but after careful review of the record, I conclude that the award of compensatory damages was excessive. I will not reduce it to $300,000, as Tesla advocates. It will be remitted to $1.5 million, the highest award supported by the evidence.

“The punitive damages award must also be remitted under Supreme Court precedent imposing constitutional limitations on punitive damages. But again, I will not reduce it to the one- to-one ratio to compensatory damages that Tesla urges. I conclude that, on these facts, the Constitution permits a punitive-damages award of $13.5 million—nine times the amount of compensatory damages,” Judge Orrick wrote.

Tesla advocated for a reduction in compensatory damages to $300,000, which Judge Orrick denied. However, in January 2022, the federal judge stated that he was inclined to reduce damages as they were “extremely high.” The federal judge also denied Tesla’s request for a new trial. “[T]he weight of the evidence amply supports the jury’s liability findings,” said court documents.

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Larry Organ, Diaz’ attorney, told Bloomberg that a $15 million reward is still a sizable one, even though it is significantly lower than the initial $137 awarded by the jury. David Oppenheimer from Berkeley Law stated that Diaz’s $15 million award remains one of the highest in a racial discrimination or employment discrimination case.

Diaz worked at Tesla’s Fremont Factory in California. He reported seeing the N-word, swastikas, and the phrase “death to all [N-words],” in the bathroom of the Fremont factory. He reported the incidents to his supervisor, who advised janitorial staff to take pictures of graffiti they found while cleaning the bathroom. Diaz also stated in court that some employees would call him the N-word while he worked at Tesla.

Diaz also testified that Tesla supervisor Ramon Martinez told him to “go back to Africa,” called him the N-word, and “I hate you [N-word].” He wrote an email that stated he did not feel safe around Martinez. These are only some of the racial discrimination Diaz experienced.

Tesla’s $137M verdict for racial discrimination reduced to $15M by Maria Merano on Scribd

The Teslarati team would appreciate hearing from you. If you have any tips, reach out to me at maria@teslarati.com or via Twitter @Writer_01001101

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Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Tesla Robotaxi’s biggest challenge seems to be this one thing

That big bright thing in the sky might be Tesla’s biggest challenge in terms of Robotaxi.

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Credit: Tesla

Tesla Robotaxi launched just a few days ago to a limited number of riders in Austin, Texas, but its biggest challenge seems to be how the automaker will figure out one thing: the Sun.

Among the company’s unique strategies, its emphasis on using cameras for self-driving is perhaps the most interesting. No other company has adopted the same strategy, as others have relied on cameras with either sensors or LiDAR rigs to accomplish their self-driving deployments.

Tesla, on the other hand, has called LiDAR unnecessary. CEO Elon Musk once called it “a fool’s errand,” stating it was not needed to build an effective self-driving fleet of vehicles.

Musk compared cameras to eyes. Humans don’t need sensors or LiDAR to operate vehicles on the road, so why should cars? This brought up some questions, especially regarding sun glare. Musk said that Tesla would use direct photon counting to see directly into brigt sunlight or even in the darkest conditions at night.

His quote during a recent earnings call was:

“Actually, it does not blind the camera. We use an approach which is direct photon count. When you see a processed image, so the image that goes from the sort of photon counter — the silicon photon counter — that then goes through a digital signal processor or image signal processor, that’s normally what happens. And then the image that you see looks all washed out, because if you point the camera at the sun, the post-processing of the photon counting washes things out.”
So far, this strategy has yielded mixed results. We have seen examples of both:

The Good

We’ve had a handful of people state that they have had no issue using the Robotaxi when it is driving into direct sunlight.

There are plenty of examples:

The Bad

The Verdict

This is obviously a weird case, and it seems that this could be one of the challenges Tesla will face with the deployment of Robotaxi.

While it will get figured out, this is something that could ultimately push back Tesla’s goal of having no safety monitor in the vehicles. However, the instance will be learned and used to improve in the future through its Neural Nets.

The first intervention was captured yesterday, requiring the Tesla safety monitor to stop the vehicle manually on the car’s touchscreen.

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Tesla owners take stand as Stockholm insists on blocking FSD tests

Despite the Tesla owners’ efforts, city officials appear unwilling to budge.

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Credit: Tesla China

Tesla owners in Sweden are taking it upon themselves to lobby for the approval of FSD-style tests in the City of Stockholm. The owners’ efforts come amidst city officials’ continued refusal to allow Tesla to test its autonomous driving system in the capital.

In open letters and social media posts, Tesla owners have urged Stockholm to reconsider its stance, pointing to broader support for FSD trials across Europe. But despite their efforts, city officials appear unwilling to budge, reinforcing the capital’s hardline stance on the Elon Musk-led EV maker.

Public support shows brand loyalty

A group of Swedish Tesla owners recently sent an open letter to Stockholm leaders. Among them is Alexander Kristensen, who has written a letter to officials urging them to allow Tesla to test FSD in the region.

“Members of the Traffic Committee are politically appointed by the Stockholm City Council, whose mandate is determined by the popular vote. Your stance—continuing to block a conditional pilot of FSD— is thus a political decision and fully subject to the electorate’s judgment in the next municipal election.

“When the City prevents tests that could validate and refine the technology locally, it is perceived as hampering life-saving innovation,” the Tesla owners wrote.

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The Swedish Transport Administration issued a response, acknowledging the Tesla owners’ feedback. The Transport Administration noted that it could proceed to grant a permit for Tesla to test FSD, but the company would still have to secure approval from local governments where the FSD-style tests will be conducted.

Stockholm remains firm

Despite this, Stockholm doubled down shortly after, stating that Tesla’s FSD software remains prohibited on city roads.

“Thank you for your comments and for taking an interest in traffic issues concerning the City of Stockholm. As previously stated, the City’s assessment of the current application remains unchanged and our position is set out in the opinion,” the City of Stockhom wrote.

In light of the city’s response, some Tesla owners have vowed to campaign against current officials in the next election.

The push for FSD testing comes as Tesla faces ongoing challenges in Sweden, including a labor dispute with unions over collective bargaining agreements. Since late 2023, the conflict has resulted in strikes, blockades, and legal battles, none of which appear close to resolution. Despite regulatory and labor headwinds, Tesla continues to expand in the region, including the recent installation of Superchargers in union-backed areas.

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xAI welcomes Memphis pollution results, environmental groups push back

Tests were conducted at Macedonia Church in Boxtown, The Links at Whitehaven, and City Hall Downtown.

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(Credit: xAI)

The City of Memphis has released initial air quality test results from three sites across the city, including one near Elon Musk’s xAI data center in South Memphis. 

According to city officials, the results showed no dangerous levels of pollutants. “At every site and for every pollutant tested, levels were either too low to detect or well below established safety thresholds,” the city’s report read.

xAI Welcomes Air Quality Test Results

Tests were conducted at Macedonia Church in Boxtown, The Links at Whitehaven, and City Hall Downtown. Memphis Mayor Paul Young stated that the data only represents a “snapshot in time” and that continued monitoring will take place.

“The City doesn’t control air quality regulations, but we stepped up to find answers. The initial results showed no dangerous levels of air pollutants at any of the tested sites. We are committed to ongoing testing to continue to inform and protect our community,” Mayor Young stated.

xAI, which opened a facility in Boxtown to house its Colossus supercomputer, welcomed the city’s initial findings. The artificial intelligence startup shared its comments in a post on social media platform X.

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“xAI welcomes the independent third-party data showing no dangerous pollutant levels at test sites near our Memphis data center. We have built a world-class data center in Memphis and we couldn’t have done it without the support of the local community and its leaders,” the company stated.

Critics Are Not Satisfied

Environmental advocates and local leaders, however, were not satisfied with the city’s initial tests. The Southern Environmental Law Center criticized the city’s approach, arguing that smog-forming emissions, including nitrogen oxides from xAI’s turbines, pose health risks that the city’s testing did not account for, as noted in a FOX 13 Memphis report.

“The city failed to measure ozone pollution–better known as smog–which we already know is a major problem in the Memphis area… As community members have warned for the last year, smog-forming pollution is a major concern with the unpermitted turbines being run at xAI’s South Memphis data center,” the group noted.

State Representative Justin J. Pearson (D-Memphis) echoed the group’s criticism.

“We do not need any more misleading reports that are more concerned with finding a conclusion conducive to Mayor Young’s unwavering support of xAI, rather than discovering the truth. Our review of the information released by the City of Memphis earlier this evening revealed a glaring and critical omission in their pollution testing and results: the monitoring of ozone which is a considerable factor in air pollution problems in Memphis,” he noted.

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