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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
Despite many recent rumors and various reports, Elon Musk confirmed today that SpaceX is not developing a phone based on Starlink, not once, but twice.
Today’s report from Reuters cited people familiar with the matter and stated internal discussions have seen SpaceX executives mulling the idea of building a mobile device that would connect directly to the Starlink satellite constellation.
Musk did state in late January that SpaceX developing a phone was “not out of the question at some point.” However, He also said it would have to be a major difference from current phones, and would be optimized “purely for running max performance/watt neural nets.”
Not out of the question at some point. It would be a very different device than current phones. Optimized purely for running max performance/watt neural nets.
— Elon Musk (@elonmusk) January 30, 2026
While Musk said it was not out of the question “at some point,” that does not mean it is currently a project SpaceX is working on. The CEO reaffirmed this point twice on X this afternoon.
Musk said, “Reuters lies relentlessly,” in one post. In the next, he explicitly stated, “We are not developing a phone.”
Reuters lies relentlessly
— Elon Musk (@elonmusk) February 5, 2026
We are not developing a phone
— Elon Musk (@elonmusk) February 5, 2026
Musk has basically always maintained that SpaceX has too many things going on, denying that a phone would be in the realm of upcoming projects. There are too many things in the works for Musk’s space exploration company, most notably the recent merger with xAI.
SpaceX officially acquires xAI, merging rockets with AI expertise
A Starlink phone would be an excellent idea, especially considering that SpaceX operates 9,500 satellites, serving over 9 million users worldwide. 650 of those satellites are dedicated to the company’s direct-to-device initiative, which provides cellular coverage on a global scale.
Nevertheless, there is the potential that the Starlink phone eventually become a project SpaceX works on. However, it is not currently in the scope of what the company needs to develop, so things are more focused on that as of right now.
Tesla has added a notable improvement to its Dashcam feature after complaints from owners have pushed the company to make a drastic change.
Perhaps one of the biggest frustrations that Tesla owners have communicated regarding the Dashcam feature is the lack of ability to retain any more than 60 minutes of driving footage before it is overwritten.
It does not matter what size USB jump drive is plugged into the vehicle. 60 minutes is all it will hold until new footage takes over the old. This can cause some issues, especially if you were saving an impressive clip of Full Self-Driving or an incident on the road, which could be lost if new footage was recorded.
This has now been changed, as Tesla has shown in the Release Notes for an upcoming Software Update in China. It will likely expand to the U.S. market in the coming weeks, and was first noticed by NotaTeslaApp.
The release notes state:
“Dashcam Dynamic Recording Duration – The dashcam dynamically adjusts the recording duration based on the available storage capacity of the connected USB drive. For example, with a 128 GB USB drive, the maximum recording duration is approximately 3 hours; with a 1 TB or larger USB drive, it can reach up to 24 hours. This ensures that as much video as possible is retained for review before it gets overwritten.”
Tesla Adds Dynamic Recording
Instead of having a 60-minute cap, the new system will now go off the memory in the USB drive. This means with:
- 128 GB Jump Drive – Up to Three Hours of Rolling Footage
- 1TB Jump Drive – Up to 24 Hours of Rolling Footage
This is dependent on the amount of storage available on the jump drive, meaning that if there are other things saved on it, it will take away from the amount of footage that can be retained.
While the feature is just now making its way to employees in China, it will likely be at least several weeks before it makes its way to the U.S., but owners should definitely expect it in the coming months.
It will be a welcome feature, especially as there will now be more customization to the number of clips and their duration that can be stored.
With the news of a merger between SpaceX and xAI being confirmed earlier this week by CEO Elon Musk directly, the first moves of an umbrella company that combines all of the serial tech entrepreneur’s companies have been established.
The move aims to combine SpaceX’s prowess in launches with xAI’s expanding vision in artificial intelligence, as Musk has detailed the need for space-based data centers that will require massive amounts of energy to operate.
It has always been in the plans to bring Musk’s companies together under one umbrella.
“My companies are, surprisingly in some ways, trending toward convergence,” Musk said in November. With SpaceX and xAI moving together, many are questioning when Tesla will be next. Analysts believe it is a no-brainer.
SpaceX officially acquires xAI, merging rockets with AI expertise
Dan Ives of Wedbush wrote in a note earlier this week that there is a “growing chance” Tesla could be merged in some form with the new conglomeration over the next 12 to 18 months.
“In our view, there is a growing chance that Tesla will eventually be merged in some form into SpaceX/xAI over time. The viewis this growing AI ecosystem will focus on Space and Earth together… and Musk will look to combine forces,” Ives said.
Let’s take a look at the potential.
The Case for Synergies – Building the Ultimate AI Ecosystem
A triple merger would create a unified “Musk Trinity,” blending Tesla’s physical AI with Robotaxi, Optimus, and Full Self-Driving, SpaceX’s orbital infrastructure through Starlink and potential space-based computer, and xAI’s advanced models, including Grok.
This could accelerate real-world AI applications, more specifically, ones like using satellite networks for global autonomy, or even powering massive training through solar-optimized orbital data centers.
The FCC welcomes and now seeks comment on the SpaceX application for Orbital Data Centers.
The proposed system would serve as a first step towards becoming a Kardashev II-level civilization and serve other purposes, according to the applicant. pic.twitter.com/TDnUPuz9w7
— Brendan Carr (@BrendanCarrFCC) February 4, 2026
This would position the entity, which could ultimately be labeled “X,” as a leader in multiplanetary AI-native tech.
It would impact every level of Musk’s AI-based vision for the future, from passenger use to complex AI training models.
Financial and Structural Incentives — and Risks
xAI’s high cash burn rate is now backed by SpaceX’s massive valuation boost, and Tesla joining the merger would help the company gain access to private funding channels, avoiding dilution in a public-heavy structure.
The deal makes sense from a capital standpoint, as it is an advantage for each company in its own specific way, addressing specific needs.
Because xAI is spending money at an accelerating rate due to its massive compute needs, SpaceX provides a bit of a “lifeline” by redirecting its growing cash flows toward AI ambitions without the need for constant external fundraising.
Additionally, Tesla’s recent $2 billion investment in xAI also ties in, as its own heavy CapEx for Dojo supercomputers, Robotaxis, and Optimus could potentially be streamlined.
Musk’s stake in Tesla and SpaceX, after the xAI merger, is also uneven. His ownership in Tesla equates to about 13 percent, only increasing as he achieves each tranche of his most recent compensation package. Meanwhile, he owns about 43 percent of the private SpaceX.
A triple merger between the three companies could boost his ownership in the combined entity to around 26 percent. This would give Musk what he wants: stronger voting power and alignment across his ventures.
It could also be a potential facilitator in private-to-public transitions, as a reverse merger structure to take SpaceX public indirectly via Tesla could be used. This avoids any IPO scrutiny while accessing the public markets’ liquidity.
Timeline and Triggers for a Public Announcement
As previously mentioned, Ives believes a 12-18 month timeline is realistic, fueled by Musk’s repeated hints at convergence between his three companies. Additionally, the recent xAI investment by Tesla only points toward the increased potential for a conglomeration.
Of course, there is speculation that the merger could happen in the shorter term, before June 30 of this year, which is a legitimate possibility. While this possibility exists but remains at low probability, especially when driven by rapid AI/space momentum, longer horizons, like 2027 or later, allow for key milestones like Tesla’s Robotaxi rollout and Cybercab ramp-up, Optimus scaling, or regulatory clarity under a favorable administration.
Credit: Grok Imagine
The sequencing matters: SpaceX-xAI merger as “step one” toward a unified stack, with a potential SpaceX IPO setting a valuation benchmark before any Tesla tie-up.
Full triple convergence could follow if synergies prove out.
Prediction markets are also a reasonable thing to look at, just to get an idea of where people are putting their money. Polymarket, for example, sits at between a 12 and 24 percent chance that a Tesla-SpaceX merger is officially announced before June 30, 2026.
Looking Ahead
The SpaceX-xAI merger is not your typical corporate shuffle. Instead, it’s the clearest signal yet that Musk is architecting a unified “Muskonomy” where AI, space infrastructure, and real-world robotics converge to solve humanity’s biggest challenges.
Yet the path is fraught with execution risks that could turn this visionary upside into a major value trap. Valuation mismatches remain at the forefront of this skepticism: Tesla’s public multiples are unlike any company ever, with many believing they are “stretched.” On the other hand, SpaceX-xAI’s private “marked-to-muth” pricing hinges on unproven synergies and lofty projects, especially orbital data centers and all of the things Musk and Co. will have to figure out along the way.
Ultimately, the entire thing relies on a high-conviction bet on Musk’s ability to execute at scale. The bullish case is transformative: a vertically integrated AI-space-robotics giant accelerates humanity toward abundance and multi-planetary civilization faster than any siloed company could.
Elon Musk confirms SpaceX is not developing a phone
Tesla adds notable improvement to Dashcam feature
