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Tesla factory worker sues company over alleged race and sexual harassment
A new lawsuit filed by a former Tesla employee alleges that the company did not take action after what they claim was overwhelming evidence of a hostile workplace at the company’s Fremont, California factory.
Dewitt Lambert is being represented by the California Civil Rights Law Group who filed the suit this week which details charges including Race Harassment, Race Discrimination, Sexual Harassment, Retaliation, Failure to Prevent Harassment, Discrimination and Retaliation, Threats of Violence in Violation of the Ralph Act, Violation of the Bane Act, Failure to Accommodate, Failure to Engage in the Interactive Process, and Assault and Battery.
The suit and accompanying cellphone video which was taken in 2015, during the timeframe of the alleged harassment, show a tirade of racial slurs and strong language taking place inside a partially assembled Tesla Model S in the Fremont factory.
“The complaint alleges that Tesla failed, under California law, to take immediate and appropriate corrective action on Mr. Lambert’s behalf,” said Organ. “Because of this inaction my client is claiming psychological harm and medical problems. Tesla is liable for Mr. Lambert’s damages because it failed to adequately investigate and prevent damaging abuse from taking place in the workplace.”
The California Civil Rights Law Group sent Teslarati the video above and accompanying press release that includes a 10-month of the alleged discrimination, complaints and promotions of offending employees. It is not clear if the promotions are related to the allegations but it could certainly be seen as a motivating factor for the suit. It seems to indicate that Lambert was not able to get promoted while being subjected to the alleged workplace abuse while his supervisors were rewarded in light of the behavior.
A representative from Tesla provides Teslarati with the following statement in response to Lambert’s suit.
We believe strongly in having a good working environment and that people should look forward to coming to work every day. That means Tesla must always aspire to be transparent, respectful, fair and just. When we hear complaints or concerns raised by our employees, we take them very seriously.
A video recently came to light showing behavior by a group of employees at our factory acting in a way that we found disappointing and contrary to our values. It appears that a lawsuit is now being filed against Tesla in connection with this video. In the interest of transparency, we want to share what we know:
- Based on interviews we have done, in April 2016, an employee named Dewitt Lambert got into an argument with a coworker and threatened him with violence. Dewitt, this coworker, and other employees had been part of a group of friends who worked together at the factory and also socialized together outside of work. The other employee filmed Dewitt making the threat and Dewitt mistakenly believed that some of these other employees had provided the video to HR in order to get him in trouble. (In actuality, the video wasn’t provided to HR).
- Later that day, in an apparent attempt to turn the tables on the complaint that he thought had been made against him, Dewitt filed a complaint with HR about these other employees, claiming it was they who had mistreated him, including by using racially insensitive language.
- HR personnel investigated, interviewing all of the employees who were reportedly involved. That investigation turned up conflicting accounts of what happened, with other employees saying that Dewitt had the “dirtiest mouth” they had “ever heard,” including using the same racially insensitive language that he had complained about. In the end, there was no objective evidence that anything inappropriate occurred toward Dewitt. As a result, our HR team coached this group of employees on the importance of behaving professionally and the investigation was closed.
- Dewitt thereafter was transferred to another work area where he would have no further contact with those he complained about. There are no records of him complaining about new events for about a year after this. It seems that the transfer had its intended effect.
- On July 6, 2016, during an unrelated conversation with HR in which Dewitt was receiving a final written warning for posting proprietary photos of Tesla equipment on social media against company policy, Dewitt showed HR an old video (taken in late 2015) containing the kind of language that he had previously complained about. This was the first time any video was mentioned or shown. The investigation was reopened.
- The HR representative who had led the prior investigation left the company two days later on July 8, 2016 and didn’t hand off the investigation to anyone else.
- Although Dewitt continued to have regular interaction with HR on a host of topics, for which he thanked them for their support, we have no evidence indicating that he came to HR with any further complaints of this nature. Then, through an attorney, Dewitt submitted a letter six months later demanding a very large payment or he would file a lawsuit.
- Once again, we looked into his claims and found that the co-workers Dewitt complained about described the situation very differently. They claimed once again they had all been friends and socialized outside of work, and that all of them (including Dewitt) used similar insensitive language with each other on a regular, ongoing basis, including in social contexts outside of the workplace.
- Confirming this, one of the employees Dewitt accused shared personal instant messages (attached) which showed Dewitt using the same language when describing other colleagues involved in the argument from April 2016. One of those messages indicated why he apparently decided to make these accusations – he was upset because of his belief that these colleagues had turned a video into HR showing Dewitt threatening one of them. The employee stated this was what led Dewitt to conjure up false claims about these other individuals.
- Dewitt alleges that he was not promoted as retaliation for having made complaints. This is false. Dewitt was promoted 12 months ago, and the reason he wasn’t given a second promotion within 12 months is that, among other things, he had been given a final written warning for posting pictures of confidential Tesla technology on Facebook in clear violation of company policy.
That brings us to today. We have been told by Dewitt’s attorney that they will be following up on their previous demand for a large payment by filing a lawsuit. The lawsuit has been timed to coincide with a carefully planned media blitz in an attempt to create a disingenuous narrative that is at odds with the facts.
It’s clear that our investigation should have continued uninterrupted until all the facts were known. We have terminated several employees based on what we’ve learned and have suspended Dewitt with pay so that we can finish investigating the circumstances of the instant messages that were just provided to us about his threats of violence against coworkers. We will continue to take action as necessary, including parting ways with anyone whose behavior prevents Tesla from being a great place to work. However, it’s also clear that Dewitt’s version of events is not supported by the facts. It would never be right to take action based on an accusation alone — there must be objective evidence or credible witnesses to ensure that an innocent person is not treated unfairly.
It is night and day to work at a company with strong purpose and great team spirit, where people look forward to coming to work. Monday either feels like jail or joy, and the people you work with make all the difference in the world.
The full lawsuit can be seen here:
https://www.teslarati.com/wp-content/uploads/2017/03/Tesla-Complaint-Filed-2017.03.27.pdf
Investor's Corner
Tesla stock gets hit with shock move from Wall Street analysts
Despite Tesla not being an automotive company exclusively, the Wall Street firms and analysts covering its shares are widely dialed in on its performance regarding quarterly deliveries. While it holds some importance, Tesla, from an internal perspective, is more focused on end-to-end AI, Robotaxi, self-driving, and its Optimus robot.
Tesla price targets (NASDAQ: TSLA) have received several cuts over the past few days as Wall Street firms are adjusting their forecast for the company’s stock following a miss in quarterly delivery figures for the first quarter.
Despite Tesla not being an automotive company exclusively, the Wall Street firms and analysts covering its shares are widely dialed in on its performance regarding quarterly deliveries. While it holds some importance, Tesla, from an internal perspective, is more focused on end-to-end AI, Robotaxi, self-driving, and its Optimus robot.
In a notable shift underscoring mounting caution on Wall Street, three prominent investment banks slashed their price targets on Tesla Inc. shares over the past two weeks following the electric-vehicle giant’s disappointing first-quarter 2026 delivery numbers. The revisions highlight softening EV sales figures and, according to some, execution challenges.
Tesla delivered 358,023 vehicles in the January-to-March period, a 14 percent sequential decline and a miss versus consensus forecasts of roughly 365,000 to 370,000 units.
Production hit 408,000 vehicles, yet the delivery shortfall, paired with limited updates on autonomous-driving progress and new-model timelines, rattled investors. Shares fell about 8.7 percent since April 1.
Wall Street analysts are now adjusting their forecasts accordingly, as several firms have made adjustments to price targets.
Goldman Sachs
Goldman Sachs cut its target from $405 to $375 while maintaining a Hold rating. Analyst Mark Delaney pointed to soft EV sales trends and margin pressures.
Truist Financial followed on April 2, lowering its target from $438 to $400 (Hold unchanged), with analyst William Stein citing misses in both auto deliveries and energy-storage deployments, plus a lack of fresh details on AI initiatives and upcoming vehicles.
It is a strange drop if using AI initiatives and upcoming vehicles as a justification is the primary focus here. Tesla has one of the most optimistic outlooks in terms of AI, and CEO Elon Musk recently hinted that the company is developing something for the U.S. market that will be good for families.
Baird
Baird’s Ben Kallo made a very modest trim, reducing its target from $548 to $538, keeping and maintaining the ‘Outperform’ rating it holds on shares. Kallo said the price target adjustment was a prudent recalibration tied to near-term risks.
Truist
Truist analyst William Stein pointed to deliveries and energy storage missing expectations, and cut his price target to $400 from $438. He maintained the ‘Hold’ rating the firm held on the stock previously.
JPMorgan
Adding to the bearish tone on Monday, April 6, JPMorgan’s Ryan Brinkman reiterated an Underweight (Sell) rating and $145 price target, implying roughly 60 percent downside from recent levels.
Brinkman highlighted a “record surge in unsold vehicles” that adds to free-cash-flow woes, with inventory swelling to an estimated 164,000 units.
Tesla’s comfort level taking risks makes the stock a ‘must own,’ firm says
He lowered his Q1 2026 EPS estimate to $0.30 from $0.43 and full-year 2026 EPS to $1.80 from $2.00, both below consensus. Brinkman noted that expectations for Tesla’s performance have “collapsed” across financial and operating metrics through the end of the decade, yet the stock has risen 50 percent, and average price targets have increased 32 percent.
This disconnect, he argued, prices in an unrealistic sharp pivot to stronger results beyond the decade, while near-term realities remain materially weaker.
He advised investors to approach TSLA shares with a “high degree of caution,” citing elevated execution risk, competition, and valuation concerns in lower-price, higher-volume segments.
The revisions have pulled the overall consensus lower. Aggregators show the average 12-month price target now ranging from approximately $394 to $416 across roughly 32 analysts, with a prevailing Hold rating and a mixed split of Buy, Hold, and Sell recommendations.
Brinkman’s $145 target stands as a notable outlier on the bearish side.
Not Everyone Has Turned Bearish on Tesla Shares
Not all firms turned more pessimistic. Wedbush Securities held its bullish $600 target, stressing that AI and full self-driving technology represent the core value drivers, with current delivery softness viewed as temporary.
These moves reflect a broader Wall Street recalibration: near-term EV demand faces pressure from high interest rates, intensifying competition, especially from lower-cost Chinese rivals, and slower adoption.
At the same time, many analysts continue to see Tesla’s technology leadership in software-defined vehicles, autonomy, robotaxis, and energy storage as pathways to outsized long-term gains once macro conditions ease and new models launch.
With Tesla’s first-quarter earnings report due later this month, upcoming details on cost discipline, Cybertruck ramp-up, and AI roadmaps will likely shape whether these target adjustments prove prescient or overly cautious. Investors remain divided between immediate delivery realities and the company’s ambitious vision.
Tesla shares are trading at $348.82 at the time of publishing.
Elon Musk
Tesla Full Self-Driving feature probe closed by NHTSA
Actually Smart Summon allows owners to move their parked Tesla via a smartphone app remotely, directing the vehicle short distances in parking lots or private property while the driver supervises from the phone.
A probe into a popular Tesla self-driving feature has been closed by the National Highway Traffic Safety Administration (NHTSA) after over a year of scrutiny from the government agency.
The NHTSA has officially closed its investigation into Tesla’s Actually Smart Summon (ASS) feature, marking a regulatory win for the electric vehicle maker after more than a year of scrutiny.
Here’s our coverage on the launch of the probe:
Tesla’s Actually Smart Summon feature under investigation by NHTSA
The preliminary investigation, opened last January, examined roughly 2.59 million Tesla vehicles equipped with the feature across the Model S, Model X, Model 3, and Model Y lineups. ASS is not available for Cybertruck currently.
Actually Smart Summon allows owners to move their parked Tesla via a smartphone app remotely, directing the vehicle short distances in parking lots or private property while the driver supervises from the phone.
Here’s a clip of us using it:
Summon has had some good performances for me in the past
This was in October: https://t.co/w69Zp2bqeg pic.twitter.com/PVXSRj19E0
— TESLARATI (@Teslarati) April 5, 2026
Introduced as an upgrade to the original Smart Summon, the feature was designed to enhance convenience but drew attention after reports of low-speed incidents where vehicles bumped into stationary objects like posts, parked cars, or garage doors.
The NHTSA’s Office of Defects Investigation reviewed 159 incidents, including one formal Vehicle Owner’s Questionnaire complaint and media reports.
Notably, all events occurred at very low speeds, resulted only in minor property damage, and involved zero injuries or fatalities. The agency determined that the incidents were “extremely rare”, a fraction of one percent across millions of Summon sessions, and did not indicate a systemic safety-related defect.
A key factor in the closure was Tesla’s proactive response through over-the-air (OTA) software updates.
During the probe, Tesla deployed at least six updates that improved camera-based object detection, enhanced neural network performance for obstacle recognition, and refined the system’s response to potential hazards. These iterative improvements, delivered wirelessly to the entire fleet, addressed the primary concerns around detection reliability and operator reaction time.
Critics of Tesla’s autonomous features had initially pointed to the crashes as evidence of rushed deployment, especially given the feature’s reliance on the company’s vision-only Full Self-Driving (FSD) stack. However, NHTSA’s decision to close the case without seeking a recall underscores the low-severity nature of the events and the effectiveness of software-based fixes in modern vehicles.
It definitely has its flaws. I used ASS yesterday unsuccessfully:
It was pouring when I left the gym so I tried to Summon my Model Y
It turned the opposite way and drove out of range, stopping here and forcing me to walk even further across the lot in the rain for it 🤣
One day pic.twitter.com/iD10c8sriB
— TESLARATI (@Teslarati) April 5, 2026
However, improvements will come, and I’m confident in that.
The closure comes as Tesla continues to push boundaries with its autonomous driving ambitions, including unsupervised FSD rollouts and robotaxi initiatives. For owners, the ruling reinforces confidence in Actually Smart Summon as a convenient, low-risk tool rather than a hazardous experiment.
While broader NHTSA reviews of Tesla’s higher-speed FSD capabilities remain ongoing, this outcome highlights how data-driven analysis and rapid OTA remediation can satisfy regulators in the evolving landscape of automated driving technology.
Tesla has not issued an official statement on the closure, but the move is widely viewed as bullish for the company’s autonomy roadmap, reducing one layer of regulatory overhang and allowing focus on further refinements.
Elon Musk
Tesla uses Model S and X ‘sentimental’ value to enforce massive pricing move
By slashing production and creating immediate scarcity, the company has transformed these remaining vehicles into limited-edition relics. The price hike is not driven by rising material costs or new features.
Tesla is using the “sentimental” value that CEO Elon Musk talked about with the Model S and Model X to enforce one of the most massive pricing moves it has ever applied as it begins to phase out the flagship vehicles.
Tesla quietly executed one of its most calculated pricing plays yet. After officially ending production of the Model S and Model X, the company raised prices on every remaining new and demo unit by roughly $15,000.
The refreshed starting prices now sit at:
- $109,990 for the Model S AWD
- $124,900 for the Model S Plaid
- $114,900 for the Model X AWD
- $129,900 for the Model X Plaid
NEWS: Tesla has raised the price on all remaining new (and demo) Model S and Model X vehicles left in inventory by $15,000.
New starting prices:
• Model S AWD: $109,990
• Model S Plaid: $124,900
• Model X AWD: $114,900
• Model X Plaid: $129,900 pic.twitter.com/qBEhsYAfXr— Sawyer Merritt (@SawyerMerritt) April 5, 2026
Every vehicle comes fully loaded with the Luxe Package, Full Self-Driving Supervised, four years of premium connectivity and service, and lifetime free Supercharging. What looks like a simple inventory adjustment is, in reality, a masterclass in monetizing nostalgia.
These are not ordinary cars. For many owners, the Model S and Model X represent the purest expression of Tesla’s original promise—the sleek, over-engineered flagships that proved electric vehicles could be faster, quieter, and more desirable than their gasoline counterparts.
Tesla removes Model S and X custom orders as sunset officially begins
They are the vehicles that carried Elon Musk’s vision from Silicon Valley startup to global automaker.
The final units rolling off the line carry an emotional weight that numbers alone cannot capture. Buyers are not simply purchasing transportation; they are acquiring a piece of Tesla history, the last examples of the very models that defined the brand’s first decade.
Tesla, with this move, understands this sentiment deeply.
By slashing production and creating immediate scarcity, the company has transformed these remaining vehicles into limited-edition relics. The price hike is not driven by rising material costs or new features.
It is driven by the knowledge that a certain segment of buyers, loyalists, collectors, and enthusiasts, will pay a premium precisely because these cars are about to disappear. The strategy converts emotional attachment into margin.
Where other automakers might discount outgoing models to clear lots, Tesla is betting that sentiment is worth more than volume.
The move also quietly rewards existing owners. Scarcity instantly boosts resale values for the hundreds of thousands of Model S and X already on the road, reinforcing brand loyalty among the very people who helped build Tesla’s reputation.
In the end, Tesla’s pricing decision reveals a sophisticated understanding of its audience. As the company pivots toward next-generation platforms, it has found a way to extract one final, lucrative chapter from its heritage.
For buyers willing to pay the new prices, the premium is not just for the car; it is for the feeling of owning the last true originals. Tesla has turned sentiment into strategy, and in the process, reminded everyone that even in the EV era, emotion remains a powerful line on the balance sheet.
Tesla stock gets hit with shock move from Wall Street analysts
Tesla Full Self-Driving feature probe closed by NHTSA
