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Tesla faces federal lawsuit alleging racial harassment

Credit: Tesla

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Tesla faces a new lawsuit alleging severe harassment of Black employees at its Fremont, California factory, as filed by a federal civil rights agency this week.

On Thursday, the U.S. Equal Employment Opportunity Commission (EEOC) filed a lawsuit against Tesla in federal court, claiming that, since 2015, the company’s Black workers have been subject to racist slurs and graffiti, including images of swastikas and nooses, according to a report from Reuters.

The suit is just the latest in allegations of racial discrimination at the automaker’s Fremont, California factory, and it comes just over a week after another lawsuit claiming toxic work environments at Tesla’s factories was dismissed.

According to this week’s lawsuit, Tesla hasn’t investigated the claims of racist conduct since the EEOC first raised them, and it also claims that the automaker has fired some employees who reported cases of harassment. Tesla has said in the past that it doesn’t tolerate any racial discrimination, adding that it takes complaints from its workers very seriously.

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The lawsuit comes after it was found that the EEOC was investigating Tesla last year, with the agency saying that it discovered “reasonable cause” to believe the automaker went against federal discrimination laws. The EEOC then tried to enter into a settlement with Tesla, though discussions to settle reportedly failed. Investigations began when EEOC chair Charlotte Burrows filed an internal complaint with the commission, considered a charge against Tesla.

“Every employee deserves to have their civil rights respected, and no worker should endure the kind of shameful racial bigotry our investigation revealed,” Burrows said.

Reuters notes that the EEOC typically settles lawsuits directly with employers, adding that it’s somewhat uncommon for the agency’s cases to make it to trial.

The suit also represents the first set of federal charges brought against Tesla for allegations of racial discrimination, with similar lawsuits previously arising from the state of California and past employees. Stephen Diamond, a Santa Clara University law professor who has previously advised Tesla investors on social responsibility, notes that the escalation to the federal level could make it harder for the automaker to defend itself against allegations of discrimination.

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“If the federal government gets involved, it certainly adds credibility to the claims,” Diamond said. “Major institutional investors like pension funds will be very concerned about this type of behavior.”

The lawsuit is seeking to make Tesla pay compensation and punitive damages to an unspecified number of its Black workers at the Fremont location, and it would also force the automaker to improve policies related to discrimination and retaliation.

Tesla also faces a racial discrimination case from the California Civil Rights Department (DCR), which is considered a counterpart of the EEOC’s on the state level. That particular suit alleges that Tesla discriminated against Black workers in decisions about wages, promotions and general work assignments. Tesla requested that the DCR dismiss the case last year, saying it was politically motivated, though a judge denied the request.

In addition, a former Black contract elevator operator at the Fremont factory, Owen Diaz, is now seeking his third trial with Tesla from a 2017 lawsuit alleging racial discrimination. In the suit, Diaz said he was told to “go back to Africa” and was called the N-word without any action taken by the automaker despite his repeated complaints. A jury awarded Diaz $3.2 million in April after he rejected a separate payout in 2021 that the judge had reduced from $137 million to $15 million.

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Tesla is also facing a class-action lawsuit from around 240 employees in California, claiming that the company mistreated Black workers at the Fremont factory.

Former Tesla employee looks to add almost 240 plaintiffs in racism lawsuit

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.

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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla influencers argue company’s polarizing Full Self-Driving transfer decision

Tesla maintains it will honor transfers for orders with initial delivery windows before the deadline and offers full deposit refunds otherwise, citing longstanding fine print that the program is “subject to change at any time.”

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Tesla’s decision to tighten its Full Self-Driving (FSD) transfer promotion has ignited fierce debate among owners and enthusiasts.

The company quietly updated its terms in late February 2026, changing the eligibility from “order by March 31, 2026” to “take delivery by March 31, 2026.”

What began as a flexible incentive to boost sales, allowing buyers to transfer their paid FSD (Supervised) to a new vehicle, now excludes many, particularly Cybertruck owners facing delivery delays into summer or later.

Tesla maintains it will honor transfers for orders with initial delivery windows before the deadline and offers full deposit refunds otherwise, citing longstanding fine print that the program is “subject to change at any time.”

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The reversal has polarized the Tesla community, with accusations of a “bait-and-switch” clashing against defenses of corporate pragmatism. Many owners who placed orders under the original wording feel betrayed, especially as production backlogs and new unsupervised FSD rollout complicate timelines.

However, Tesla has allowed them to cancel their orders and receive a refund.

Critics of the decision argue that the change disadvantages loyal customers who helped fund FSD development, calling it poor communication and a revenue grab as Tesla pivots toward subscriptions.

Popular influencers have amplified the divide. Whole Mars Catalog struck a measured but firm tone, acknowledging the original “order by” language but emphasizing Tesla’s right to adjust terms. He has continued to defend Tesla in this particular issue:

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He criticized extreme backlash as “dramatization” and “spoiled kids,” noting the unsupervised FSD era and broader sales challenges make blanket transfers financially risky. Whole Mars advocated for polite outreach to CEO Elon Musk over the issue.

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In a contrasting perspective, Dirty TesLA voiced sharper frustration, posting that blocking transfers feels “crazy” and distancing himself from “people that want to worship a corporation and say they can do no wrong.” His stance resonated with owners who view the policy flip as disrespectful to early adopters.

Popular Tesla influencer Sawyer Merritt captured the frustration felt by thousands. In a widely shared thread viewed over 700,000 times, Merritt detailed how pre-change Cybertruck orders now risk losing FSD eligibility unless their initial delivery window falls before March 31.

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The controversy underscores deeper tensions—between Tesla’s need for revenue discipline and owners’ expectations of goodwill. As FSD evolves toward unsupervised capability, the community remains split: some see the change as necessary business, others as a broken promise. Whether Tesla reconsiders under pressure or holds firm remains to be seen, but it does not appear they are planning to budge.

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Tesla Semi’s latest adoptee will likely encourage more of the same

Public visibility matters. When shoppers see a trusted name like Ralph’s running clean, high-tech trucks on public roads, skepticism fades. Competitors such as Albertsons, which pre-ordered Semis years ago, and other chains chasing ESG targets now have proof that electric autonomy works in real-world grocery fleets.

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Credit: X | ChargePozitive

The latest adoptee of the Tesla Semi will likely encourage more businesses in the same realm to adopt the all-electric Class 8 truck, as a new company utilizing the Semi has been spotted in Southern California.

A sleek, futuristic Tesla Semi truck branded for Ralph’s Supermarkets was spotted cruising a Los Angeles highway in a viral 13-second dashcam video posted March 2, by X user ChargePozitive.

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This sighting confirms Kroger’s March 2025 partnership with Tesla to deploy up to 500 autonomous electric Semis.

While the initial announcement targeted Midwest supply chains, the California appearance under the Ralph’s banner shows the program expanding to Kroger’s West Coast operations. Ralph’s, a staple for millions of Southern California shoppers, is now hauling groceries with the Semi, which has zero tailpipe emissions and claims up to 500 miles of range per charge.

Tesla Semi pricing revealed after company uncovers trim levels

The timing could not be better for sustainable logistics. Traditional trucking accounts for a massive share of retail emissions, but Tesla’s Semi slashes fuel and maintenance costs while leveraging full autonomy to ease driver shortages and improve safety.

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Tesla’s expanding Megacharger network, including new sites along major freight corridors and partnerships like the recently-announced one with Pilot Travel Centers, is removing range anxiety and making nationwide scaling realistic. There’s still a long way to go, but things are moving in the right direction.

Public visibility matters. When shoppers see a trusted name like Ralph’s running clean, high-tech trucks on public roads, skepticism fades. Competitors such as Albertsons, which pre-ordered Semis years ago, and other chains chasing ESG targets now have proof that electric autonomy works in real-world grocery fleets.

PepsiCo’s successful pilots already demonstrated viability, and Ralph’s sighting adds retail credibility.

As Tesla ramps high-volume Semi production through 2026, this isn’t an isolated curiosity. Instead, it’s a catalyst. More grocers adopting the platform will accelerate industry-wide decarbonization, cut operating expenses, and deliver tangible environmental wins.

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The future of sustainable supply chains is already on the highway, and Ralph’s just made it impossible to ignore.

Moving forward, Tesla hopes to expand the Semi program into other regions, including Europe, which CEO Elon Musk recently said is a total possibility next year.

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Tesla ramps Cybercab test manufacturing ahead of mass production

Tesla still has plans for volume production, which remains between four and eight weeks away, aligning with Musk’s statements that early ramps would be deliberately measured given the Cybercab’s novel architecture and full reliance on Tesla’s vision-based Full Self-Driving technology.

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Credit: Joe Tegtmeyer | X

Tesla is seemingly ramping Cybercab test manufacturing ahead of mass production, which is scheduled to begin next month, the company said.

At Tesla’s Gigafactory Texas, production of the Cybercab, the company’s groundbreaking purpose-built Robotaxi vehicle, is accelerating markedly. Drone footage from Joe Tegtmeyer captured striking aerial footage today, revealing what appears to be the largest public sighting of Cyebrcabs to date.

A total of 25 units were observed by Tegtmeyer across the Gigafactory Texas property, marking a clear step-up in testing and validation activities as Tesla prepares for a broader output.

Tesla Cybercab production begins: The end of car ownership as we know it?

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In the footage, 14 metallic gold Cybercabs were parked in a tight formation outside the factory exit, showcasing their sleek, autonomous-only design with no steering wheels, pedals, or traditional controls. Another 9 units sat at the crash testing facility, likely undergoing structural and safety validations, while two more appeared at the west end-of-line area for final checks.

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Tegtmeyer noted additional Cybercabs driving around the complex, hinting at active movement and real-world testing beyond static parking.

This surge follows the first production Cybercab rolling off the line in mid-February 2026, several weeks ahead of the originally anticipated April start.

That milestone, celebrated by Tesla employees and confirmed by CEO Elon Musk, kicked off low-volume builds on the dedicated “unboxed” manufacturing line, a modular process designed to slash costs, reduce factory footprint, and enable faster assembly compared to conventional methods.

Industry observers interpret the jump to dozens of visible units in early March as evidence that Tesla has transitioned into higher-volume test manufacturing.

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Tesla still has plans for volume production, which remains between four and eight weeks away, aligning with Musk’s statements that early ramps would be deliberately measured given the Cybercab’s novel architecture and full reliance on Tesla’s vision-based Full Self-Driving technology.

The Cybercab, envisioned as a sub-$30,000 autonomous two-seater for robotaxi fleets, represents Tesla’s bold pivot toward scalable autonomy and robotics.

Tesla fans and enthusiasts on X praised the imagery, with many expressing excitement over the visible progress toward deployment. While challenges remain, including software maturity, regulatory hurdles, and supply chain scaling, the increased factory activity underscores Tesla’s momentum in turning the Cybercab vision into reality.

As Giga Texas continues expanding and refining the manufacturing process of the Cybercab, the coming months will prove to be a pivotal time in determining how quickly this revolutionary vehicle reaches roads in the U.S. and internationally.

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