Tesla has removed wording about having a “majority-minority” workforce in its latest 10-K filing, following recent statements from CEO Elon Musk opposing Diversity, Equity and Inclusion (DEI) initiatives—and a history of allegations of racial discrimination at the automaker’s factories.
In Tesla’s 10-K filing released on Monday, the automaker has changed some of the wording alluding to DEI measures at the company, instead adding a few new paragraphs at the end. The omitted wording from the prior year’s annual report, which can be found near the end of the Item 1, Business section of Tesla’s 10-K filing last year, reads as follows:
“With a majority-minority workforce, empowering our employee resource groups to take charge in driving initiatives that attract, develop and retain our passionate workforce is vital to our continued success.”
Both this and last year’s filings include the same opening line for the section:
“At Tesla, our employees show up passionate about making a difference in the world and for each other.”
However, instead of the “minority-majority” workforce phrasing included in last year’s filing, the 10-K filed this week includes the following language:
“We remain unwavering in our demand that our factories, offices, stores and service centers are places where our employees feel respected and appreciated. Our policies are designed to promote fairness and respect for everyone. We hire, evaluate and promote employees based on their skills and performance. Everyone is expected to be trustworthy, demonstrate excellence in their performance and collaborate with others. With this in mind, we will not tolerate certain behaviors. These include harassment, retaliation, violence, intimidation and discrimination of any kind on the basis of race, color, religion, national origin, gender, sexual orientation, gender identity, gender expression, age, disability or veteran status.”
The filing goes on to mention Tesla’s anti-harassment training and leadership development programs, encouraging employees to speak up about misconduct by contacting the company integrity line, human resources, and managers, or by submitting concerns through the Take Charge process.
You can see Tesla’s full 10-K filing for the fiscal year 2023 here, along with its 10-K released a year ago for the fiscal year 2022 here. Although the “majority-minority” workplace phrasing has been removed from the 10-K filing, Tesla still says this on its website, adding that underrepresented groups represent 67 percent of the company’s U.S. workforce.
Musk and Tesla have also continually emphasized their opposition to racism in the workplace in response to allegations of discrimination over the years. Musk has instead recently made several statements on X calling DEI initiatives racist, even noting in December that he thinks “DEI must DIE.”
“The point was to end discrimination, not replace it with different discrimination,” Musk added.
“Diversity, Equity and Inclusion” are propaganda words for racism, sexism and other -isms.
This is just as morally wrong as any other racism and sexism. Changing the target class doesn’t make it right!
— Elon Musk (@elonmusk) December 16, 2023
Earlier this month, Musk reiterated his opposition to these programs, saying that “DEI is just another word for racism.”
Discrimination on the basis of race, which DEI does, is literally the definition of racism
— Elon Musk (@elonmusk) January 3, 2024
Musk has also opposed what he terms the “woke mind virus,” which he has criticized several times over the past few years.
Yeah, we have a lot to fix. The Internet is infested with the woke mind virus.
— Elon Musk (@elonmusk) January 11, 2024
Tesla has also faced multiple court cases alleging racial discrimination in the past, each of which the company and Musk have denied.
One such case included the high-profile trial of former contracted elevator operator Owen Diaz, who was denied his appeal by a judge in October for a third re-trial after being awarded $137 million by a jury in 2021. Diaz had worked at Tesla’s factory in Fremont, California, in 2015, and a second jury last April awarded him a $3.2 million verdict after he rejected a lowered settlement of $15 million from the first trial.
In a lawsuit in California in 2022, the Department of Fair Employment and Housing (DFEH) accused Tesla of operating a “racially segregated” workplace at the Fremont factory, to which the automaker responded by denying the claims and filing a formal complaint against the agency.
Earlier this month, Musk paid a visit to the Auschwitz concentration camp, and to a symposium opposing the rise of anti-semitism organized by the European Jewish Association (EJA), after X faced advertising boycotts and heavy criticism when Musk liked and replied to an anti-semitic post in November.
“I’m sorry for that post. It was foolish of me,” Musk said in an interview following the incident. “Of my 30,000 posts, it might literally be the worst and dumbest post I’ve ever done. I think over time it’ll be obvious that I’m far from anti-semitic.”
Tesla accused of race-based discrimination, retaliation by former HR manager
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Tesla analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.
Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.
In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.
The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.
Black said:
“IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”
IMHO it’s a mistake to keep $TSLA Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully…
— Gary Black (@garyblack00) January 29, 2026
On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.
Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.
Tesla begins Cybertruck deliveries in a new region for the first time
The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.
The S and X do not fit in these plans.
Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.
In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
SpaceX reportedly discussing merger with xAI ahead of blockbuster IPO
