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
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.
News
Tesla dispels reports of ‘sales suspension’ in California
“This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.”
Tesla has dispelled reports that it is facing a thirty-day sales suspension in California after the state’s Department of Motor Vehicles (DMV) issued a penalty to the company after a judge ruled it “misled consumers about its driver-assistance technology.”
On Tuesday, Bloomberg reported that the California DMV was planning to adopt the penalty but decided to put it on ice for ninety days, giving Tesla an opportunity to “come into compliance.”
Tesla enters interesting situation with Full Self-Driving in California
Tesla responded to the report on Tuesday evening, after it came out, stating that this was a “consumer protection” order that was brought up over its use of the term “Autopilot.”
The company said “not one single customer came forward to say there’s a problem,” yet a judge and the DMV determined it was, so they want to apply the penalty if Tesla doesn’t oblige.
However, Tesla said that its sales operations in California “will continue uninterrupted.”
It confirmed this in an X post on Tuesday night:
This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.
— Tesla North America (@tesla_na) December 17, 2025
The report and the decision by the DMV and Judge involved sparked outrage from the Tesla community, who stated that it should do its best to get out of California.
One X post said California “didn’t deserve” what Tesla had done for it in terms of employment, engineering, and innovation.
Tesla has used Autopilot and Full Self-Driving for years, but it did add the term “(Supervised)” to the end of the FSD suite earlier this year, potentially aiming to protect itself from instances like this one.
This is the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” naming. Previous Transportation Secretary Pete Buttigieg was vocally critical of the use of the name “Full Self-Driving,” as well as “Autopilot.”
News
New EV tax credit rule could impact many EV buyers
We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date. However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.
Tesla owners could be impacted by a new EV tax credit rule, which seems to be a new hoop to jump through for those who benefited from the “extension,” which allowed orderers to take delivery after the loss of the $7,500 discount.
After the Trump Administration initiated the phase-out of the $7,500 EV tax credit, many were happy to see the rules had been changed slightly, as deliveries could occur after the September 30 cutoff as long as orders were placed before the end of that month.
However, there appears to be a new threshold that EV buyers will have to go through, and it will impact their ability to get the credit, at least at the Point of Sale, for now.
Delivery must be completed by the end of the year, and buyers must take possession of the car by December 31, 2025, or they will lose the tax credit. The U.S. government will be closing the tax credit portal, which allows people to claim the credit at the Point of Sale.
🚨UPDATE: $7,500 Tax Credit Portal “Closes By End of Year”.
This is bad news for pending Tesla buyers (MYP) looking to lock in the $7,500 Tax Credit.
“it looks like the portal closes by end of the year so there be no way for us to guarantee the funds however, we will try our… pic.twitter.com/LnWiaXL30k
— DennisCW | wen my L (@DennisCW_) December 15, 2025
We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date.
However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.
If not, the order can still go through, but the buyer will not be able to claim the tax credit, meaning they will pay full price for the vehicle.
This puts some buyers in a strange limbo, especially if they placed an order for the Model Y Performance. Some deliveries have already taken place, and some are scheduled before the end of the month, but many others are not expecting deliveries until January.
Elon Musk
Elon Musk takes latest barb at Bill Gates over Tesla short position
Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now
Elon Musk took his latest barb at former Microsoft CEO Bill Gates over his short position against the company, which the two have had some tensions over for a number of years.
Gates admitted to Musk several years ago through a text message that he still held a short position against his sustainable car and energy company. Ironically, Gates had contacted Musk to explore philanthropic opportunities.
Elon Musk explains Bill Gates beef: He ‘placed a massive bet on Tesla dying’
Musk said he could not take the request seriously, especially as Gates was hoping to make money on the downfall of the one company taking EVs seriously.
The Tesla frontman has continued to take shots at Gates over the years from time to time, but the latest comment came as Musk’s net worth swelled to over $600 billion. He became the first person ever to reach that threshold earlier this week, when Tesla shares increased due to Robotaxi testing without any occupants.
Musk refreshed everyone’s memory with the recent post, stating that if Gates still has his short position against Tesla, he would have lost over $10 billion by now:
Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now
— Elon Musk (@elonmusk) December 17, 2025
Just a month ago, in mid-November, Musk issued his final warning to Gates over the short position, speculating whether the former Microsoft frontman had still held the bet against Tesla.
“If Gates hasn’t fully closed out the crazy short position he has held against Tesla for ~8 years, he had better do so soon,” Musk said. This came in response to The Gates Foundation dumping 65 percent of its Microsoft position.
Tesla CEO Elon Musk sends final warning to Bill Gates over short position
Musk’s involvement in the U.S. government also drew criticism from Gates, as he said that the reductions proposed by DOGE against U.S.A.I.D. were “stunning” and could cause “millions of additional deaths of kids.”
“Gates is a huge liar,” Musk responded.
It is not known whether Gates still holds his Tesla short position.