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Tesla responds to $137M jury order over alleged racism in Fremont Factory

(Credit: Joe Tegtmeyer)

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Tesla has issued a statement responding to a San Francisco jury’s recent decision, which ordered the company to pay $137 million to a former contract employee who worked at the Fremont factory. The former worker, Owen Diaz, had accused the company of ignoring the racial abuse that he suffered through while working at the California-based plant around 2015 through 2016. 

The jury’s decision was related by Lawrence Organ, the plaintiff’s lawyer from the California Civil Rights Law Group. “It’s a great thing when one of the richest corporations in America has to have a reckoning of the abhorrent conditions at its factory for Black people,” Organ stated. Tesla’s lawyers have not issued a comment about the ruling as of writing. 

The initial lawsuit alleged that Diaz, who worked as an elevator operator at the Fremont Factory for about a year in 2015 and 2016, was called a racial slur by a supervisor and other colleagues on a regular basis. The former employee also stated that other Fremont Factory workers had left derogatory cartoons depicting Black children around the facility. 

The jury deliberated for about four hours before agreeing that Tesla had created a hostile work environment by failing to address the racism being faced by Diaz. The jury agreed that a total amount of $137 million — comprised of $130 million worth of punitive damages and $6.9 million for emotional distress — was sufficient for the case. Tesla is expected to appeal the order. 

In response to the jury’s order, Tesla’s VP People Valerie Capers Workman posted a blog post on the company’s official website to explain some points about the case and the jury’s $137 million order. Workman noted that Diaz, as well as three other witnesses, testified at the trial that they regularly heard racial slurs on the Fremont factory floor. Such comments, however, were usually used by African-American workers amongst themselves. 

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The VP also admitted that racist graffiti was indeed found in the Fremont Factory’s bathrooms, which were, in turn, removed by janitorial staff. Workman added that Diaz had filed written complaints to his non-Tesla supervisors, which resulted in Tesla stepping in to address the reported issues. Two contractors were terminated and one was suspended as a result of the former contract worker’s complaints. Diaz had reportedly noted that he was “very satisfied” with the results of the investigations. 

Ultimately, Workman stated that Tesla today is not the same as the Tesla that Diaz worked with back in 2015 and 2016. She also remarked that the company has rolled out a number of inclusivity programs designed to ensure that incidents such as those experienced by the former contract worker would not happen anymore. These include a set of new behavior and language policies that the company posted back in July, which explains how derogatory words — including those used among friends of the same race or gender — would no longer be allowed in Tesla. 

“While we strongly believe that these facts don’t justify the verdict reached by the jury in San Francisco, we do recognize that in 2015 and 2016 we were not perfect. We’re still not perfect. But we have come a long way from 5 years ago. We continue to grow and improve in how we address employee concerns. Occasionally, we’ll get it wrong, and when that happens we should be held accountable.

“The Tesla of 2015 and 2016 (when Mr. Diaz worked in the Fremont factory) is not the same as the Tesla of today. Since then, Tesla has added an Employee Relations team, dedicated to investigating employee complaints. Tesla has added a Diversity, Equity & Inclusion team dedicated to ensuring that employees have the equal opportunity to excel at Tesla. And Tesla now has a comprehensive Employee Handbook (replacing the Anti-Handbook Handbook) where all of our HR policies, employee protections, and ways to report issues are published in one easy-to-find online document,” Workman wrote. 

Tesla’s full statement on the $137 million jury order could be accessed here.

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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 to fix 219k vehicles in recall with simple software update

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Credit: Tesla

Tesla is going to fix the nearly 219,000 vehicles that it recalled due to an issue with the rearview camera with a simple software update, giving owners no need to travel to a service center to resolve the problem.

Tesla is formally recalling 218,868 U.S. vehicles after regulators discovered a software glitch that can delay the rearview camera image by up to 11 seconds when drivers shift into reverse.

The affected models include certain 2024-2025 Model 3 and Model Y, as well as 2023-2025 Model S and Model X vehicles running software version 2026.8.6 and equipped with Hardware 3 computers. The National Highway Traffic Safety Administration (NHTSA) determined the lag violates Federal Motor Vehicle Safety Standard 111 on rear visibility and could increase crash risk.

Yet this is no ordinary recall. Owners do not need to schedule a service-center visit, hand over keys, or wait for parts.

Tesla fans call for recall terminology update, but the NHTSA isn’t convinced it’s needed

Tesla identified the issue on April 10, halted further deployment of the faulty firmware the same day, and began pushing a corrective over-the-air (OTA) software update on April 11.

By the time the NHTSA posted the recall notice on May 6, more than 99.92 percent of the affected fleet had already received the fix. Tesla reports no crashes, injuries, or fatalities linked to the glitch.

The episode underscores a deeper problem with regulatory language. For decades, “recall” meant hauling a vehicle to a dealership for hardware repairs or replacements. That definition no longer fits software-defined cars. When a fix arrives wirelessly in minutes — identical to an iPhone update — the term evokes unnecessary alarm and misleads the public about the actual risk and remedy.

Elon Musk has repeatedly called for exactly this change. After earlier NHTSA actions, he stated plainly: “The terminology is outdated & inaccurate. This is a tiny over-the-air software update.” On another occasion, he added that labeling OTA fixes as recalls is “anachronistic and just flat wrong.”

Musk’s point is simple: regulators must evolve their vocabulary to match the technology. Traditional recalls involve physical intervention and downtime; OTA updates do not. Retaining the old label distorts consumer perception, inflates perceived defect rates, and slows the industry’s shift to faster, safer software iteration.

Tesla’s rapid, remote remedy demonstrates the safety advantage of over-the-air capability. Problems that once required weeks of dealer appointments are now resolved in hours, often before most owners notice. As more automakers adopt software-first designs, the entire regulatory framework needs to catch up.

Updating “recall” terminology would align language with reality, reduce public confusion, and recognize that modern vehicles are no longer static hardware — they are continuously improving computers on wheels.

For the 219,000 Tesla owners involved, the process is already complete. The camera works, the car is safe, and no one left their driveway. That is the new standard — and the vocabulary should reflect it.

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Tesla is seeing record sales rebounds in key markets globally

Tesla reported robust sales momentum in April 2026, extending a multi-month recovery in its two largest markets amid intensifying global EV competition.

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Credit: Tesla

Tesla is seeing record sales rebounds in key markets across the world, and as skeptics and bears of the company that builds electric powertrains rejoice on the weak registration figures that have been reported in the past, the Musk-fronted company is keen on making a comeback.

Tesla reported robust sales momentum in April 2026, extending a multi-month recovery in its two largest markets amid intensifying global EV competition.

While the company does not release official monthly global delivery figures—reserving those for quarterly reports—data from local registration and wholesale sources show significant year-over-year gains in China and several European countries, building on a turnaround from 2025’s declines.

In China, Tesla’s Shanghai Gigafactory shipped 79,478 Model 3 and Model Y vehicles in April, a 36% increase from the same month last year. The figure marks the sixth consecutive month of year-on-year growth for China-made EVs, which include both domestic sales and exports to Europe and other regions.

Although down slightly from March’s 85,670 units, the April performance underscores Tesla’s resilience against domestic rivals like BYD. Wholesale volumes from the plant have helped Tesla regain ground after softer retail figures earlier in the year, with analysts noting improved demand fueled by competitive pricing and new configurations

Europe also delivered encouraging results. Registrations—a close proxy for sales—surged in multiple countries. France posted a 112 percent jump, Sweden 111%, Denmark 102%, and Ireland 100%. The Netherlands rose 23%, while Belgium and Romania recorded gains of 47% and 53%, respectively.

These double- and triple-digit increases reflect a broader EV market recovery across the continent, where battery-electric vehicle market share climbed to 20.5% in Q1 2026 from 13.2% a year earlier. Chinese brands continue to challenge Tesla’s position in some markets, but the U.S. automaker’s rebound has been widespread in Northern and Western Europe.

Germany, Europe’s largest auto market, contributed to the positive momentum. Although full April registration data had not yet been released as of early May, March’s figures were record-setting: 9,252 Tesla vehicles registered, a staggering 315% increase year-over-year and the company’s strongest March performance in years.

That month alone accounted for 72% of Tesla’s Q1 total in Germany (12,829 units, up 160%). Industry observers expect April to follow suit, supported by new EV subsidies and rising fuel prices.

The April figures come after Tesla’s Q1 2026 global deliveries of 358,023 vehicles, which showed modest growth but trailed some analyst expectations. The European and Chinese rebounds suggest accelerating demand heading into Q2, driven by refreshed lineups, competitive pricing, and expanding charging infrastructure.

However, Tesla faces ongoing pressure from lower-cost Chinese competitors and softening demand in select markets like Norway and Portugal, where April registrations fell sharply.

Overall, April’s data paints an optimistic picture for Tesla. The company’s ability to post consistent growth in China while reclaiming share in Europe signals renewed strength after 2025’s challenges.

Investors and analysts will watch closely for May and June numbers as Tesla prepares its Q2 report, which could confirm whether this rebound translates into sustained record-setting momentum. With approximately 450 words, this snapshot highlights how targeted execution is paying dividends in Tesla’s most critical regions

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Tesla Semi hauls fresh Cybercab batch as Robotaxi era takes hold

A Tesla Semi was filmed hauling Cybercab units out of Giga Texas for the first time.

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A Tesla Semi loaded with Cybercab units was recently filmed leaving Gigafactory Texas, marking what appears to be the first documented delivery run of Tesla’s autonomous two-seater. The footage shows multiple Cybercabs secured on a flatbed trailer being hauled by a production Tesla Semi, a truck rated for a gross combination weight of 82,000 lbs. The location is consistent with Giga Texas in Austin, where Cybercab production has been ramping since February 2026.

The sighting follows a wave of Cybercab activity at the Austin facility. In late April, drone operator Joe Tegtmeyer spotted approximately 60 Cybercabs parked in two organized groups in the factory’s outbound lot, the largest concentration observed to date. Units being staged in an outbound lot is a standard pre-delivery step, and the Semi footage is the logical next frame in that sequence.


This is not the first time Tesla has used its own Semi to move Tesla products. When the Semi was unveiled in 2017, Musk noted it would be used for Tesla’s own operations, and over the years Semi prototypes were spotted carrying cargo ranging from concrete weights to Tesla vehicles being delivered to consumers. In 2023, a Semi was photographed transporting a Cybertruck on a trailer ahead of that vehicle’s delivery launch.

The Cybercab itself was first revealed publicly at Tesla’s “We, Robot” event on October 10, 2024, at Warner Bros. Studios in Burbank, where 20 pre-production units gave attendees rides around the studio lot. Musk stated at the event that Tesla intends to produce the Cybercab before 2027. The first production unit rolled off the Giga Texas line on February 17, 2026, with Musk posting on X: “Congratulations to the Tesla team on making the first production Cybercab.”

Tesla’s annual production goal is 2 million Cybercabs per year once multiple factories reach full design capacity, with the company targeting a price under $30,000 per unit. Tesla has confirmed plans to expand its robotaxi service to seven cities in the first half of 2026, including Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas, building on the unsupervised service already running in Austin. Musk has said he expects robotaxis to cover between a quarter and half of the United States by end of year.

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