News
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
Tesla released what analysts believe the company will report in terms of deliveries and energy deployments for Q2, but the figures seem to confirm a long-standing theory on the company’s vehicle division.
For years, Tesla was just looked at as a car company. Now that it has established itself as a powerhouse in energy, AI, and tech as a whole, the company is now less hellbent on achieving quarterly growth, on a sequential basis, at least from a major standpoint.
Tesla topped out its annual deliveries in 2023 at 1.81 million, and in the two years since, the company has reported a decrease in deliveries for the entire 12-month term both times.
With Tesla delivering 358,023 cars in Q1, a 6.3 percent increase over Q1 2025, but falling short of Wall Street expectations at 365,000-370,000 units, the narrative around vehicle deliveries and their importance continued to change earlier this year. Some might say it is convenient, but others might say it is the typical evolution of a company that continues to change over time.
For Q2, Tesla’s delivery consensus estimates sit at 406,024 units, analysts believe. They were surveyed from Daiwa, DB, Wedbush, Cowen, Canaccord, Baird, Wolfe, BMP Paribas, Goldman Sachs, RBC, Evercore ISI, Barclays, Bank of America, Wells Fargo, Morgan Stanley, Truist, UBS, Jefferies, JPM, Needham & Co., HSBC, and William Blair.
Credit: Tesla
Tesla is also expected to report deployments of 13.8 GWh this quarter.
The change to Tesla’s overall narrative now leans less on vehicle deliveries and more on its other projects. Most notably, Tesla’s Robotaxi project has taken the priority over most of its other business ventures, and investors and the public are more concerned about the deployment of vehicles into the fleet, the operation of a driverless ride-hailing service, Cybercab production and operation, and expansion into new cities.
Tesla analyst realizes one big thing about the stock: deliveries are losing importance
This big narrative switch happened when Tesla indicated it was looking at making transportation a service by launching a ride-hailing service that will operate using Tesla’s Full Self-Driving suite. Once unsupervised operation begins, Robotaxi could be a new way for people to get around, all without a driver in their car.
Instead, they will rely on the billions of miles Tesla has accumulated from its real-world fleet.
It is important to note that Tesla remains significant in the automotive sector, and deliveries must continue as they have for years. Tesla still has a strong automotive business and needs to execute further on all facets to keep its investors happy.
Tesla launched the slightly larger Model Y L in China last year, and it became a hit in no time. The longer wheelbase, larger interior, and slightly more forgiving legroom area in the Model Y L became a sought-after possibility for U.S. buyers, who have been begging the company for a larger SUV.
Now, Tesla needs it more than ever, especially considering the Model X was discontinued alongside its Model S sibling earlier this year. It looks to be more likely than ever, and based on recent reports, it will fall in line with CEO Elon Musk’s prediction that it would arrive in the United States in late 2026.
Recent reports from Forbes and Not a Tesla App both have indicated Tesla plans to bring the Model Y L to the U.S. this year. The reports cite “credible sources,” and an analyst from AutoForecast Solutions named Sam Fiorani stated that the car would enter production later this year.
Fiorani said:
“China, Australia, and India are supplied by the factory in China, which will not supply vehicles to the U.S. Production of the Model Y L is expected to begin in the U.S. in September, which will lead to sales beginning before the end of 2026.”
Production would take place at Gigafactory Texas.
Additionally, a few Model Y L units have been spotted under wraps in the United States, giving more indication that Tesla plans to bring the vehicle to the U.S. When Tesla is close to launching a vehicle in the U.S., it is not uncommon to see these models with the exact car covers that you see below:
Looks like another Tesla Model Y L was spotted in the U.S.! pic.twitter.com/jhsdkcN5Go
— TESLARATI (@Teslarati) June 26, 2026
It makes sense, especially considering Musk hinted the Model Y L would make it to the U.S. in late 2026, but it was up in the air. The CEO said the advent of self-driving might not warrant a larger SUV coming to the U.S. market specifically.
The problem is, consumers do not want to hear that. They love Tesla’s tech, FSD, and other features, but they need more space for growing families. The Model X is gone, and the most anyone can fit in a Tesla right now is seven people in the seven-seat Model Y. That back row is truly only large enough to fit small children comfortably.
Tesla fans have requested a full-size SUV, and the company has made some hints that it could be in the plans.
The Model Y and Model Y L differ noticeably in size, with the Model Y L being a stretched, six-seat variant designed for great interior room. The Standard Model Y measures approximately 4,790mm in length, 1,982 mm in width with the mirrors folded, 1,624mm in height, and 2,890mm in wheel base.
In contrast, the Model Y L extends to be about 4,969–4,976mm long (roughly 179mm or 7 inches longer), stands 1,668mm tall (+44mm), and features a significantly longer 3,040 mm wheelbase (+150mm), while maintaining the same width.
This elongation primarily benefits rear passenger space and enables a 2+2+2 seating layout with captain’s chairs, though it slightly reduces maximum cargo capacity behind the rearmost seats and adds a bit of overall mass and turning radius. The result is a more spacious family hauler that still shares the core footprint and agile character of the original Model Y.
In a major development that will inevitably strengthen Tesla’s dominant position in the American EV market, Polestar has been effectively banned from selling new vehicles in the United States, starting with the 2027 model year.
The U.S. Department of Commerce denied Polestar authorization under the Connected Vehicle Rule, which prohibits vehicles containing certain connected technologies (Cellular, Wi-Fi, Bluetooth, etc.) linked to China or Russia due to national security risks, including potential data collection on American drivers.
🚨 A Tesla competitor goes down
Polestar will no longer sell new vehicles in the United States starting with the 2027 model year.
The U.S. Department of Commerce denied the brand authorization under the Connected Vehicle Rule, which restricts the sale of cars with software and… pic.twitter.com/TrwnQeoiES
— TESLARATI (@Teslarati) June 25, 2026
Polestar, which is majority-owned by China’s Geely Holding, could not obtain the required exemption despite producing some models domestically.
Polestar confirmed it will sell off any remaining inventory of the Polestar 3 and Polestar 4 models, while continuing service and warranty support for existing customers. No new models or major refreshes will reach U.S. buyers, and the company is pivoting its growth strategy to Europe, where it already generates the vast majority of its sales.
The outcome removes a direct premium EV competitor that had positioned itself as a stylish, performance-oriented alternative to Tesla’s lineup. The Polestar 2 challenged the Model 3, while the Polestar 3 and 4 targeted segments overlapping with the Model Y and upcoming Tesla offerings. Polestar’s U.S. sales had already been sluggish amid intense competition and slower demand, representing just 6 percent of its global volume in the first quarter of 2026.
While Polestar was not on Tesla’s level in the U.S., it still places a dent in the evergrowing field of Tesla competitors in the country, where it has long dominated EV sales.
Tesla faces none of these hurdles. As a U.S.-founded and U.S.-headquartered company with major manufacturing in Fremont, Austin, and Nevada, Tesla’s vehicles are built with compliant domestic and allied supply chains. Its Full Self-Driving technology, over-the-air software updates, and vertically integrated ecosystem were developed entirely in-house without foreign ownership entanglements that trigger national security reviews, at least in the U.S.
Of course, it did face a similar threat in China a few years back:
Elon Musk responds to reports of Tesla ban among China’s military over security concerns
The Connected Vehicle Rule, first advanced under the prior administration and upheld under the current one, is part of a broader U.S. effort to protect the domestic auto industry and critical technology from Chinese influence. High tariffs on Chinese-made EVs and related restrictions have already reshaped the market. Tesla benefits directly: it avoids these barriers while continuing to lead in U.S. EV sales volume, Supercharger network expansion, and energy storage integration.
By clearing Polestar from the new-vehicle playing field, the policy reduces competitive pressure in the premium and performance EV segments where Tesla has invested billions. American consumers seeking cutting-edge electric vehicles now have one fewer option tied to foreign adversaries — and one clearer path to the market leader that has driven the EV transition from the start.
For Tesla, this is more than regulatory relief. It is a strategic tailwind that reinforces its position as America’s premier EV innovator at a time when domestic manufacturing and technological independence matter most.
Tesla Q2 delivery consensus confirms this long-standing theory
Tesla looks keen to bring larger Model Y L to the U.S.
