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Tesla sued by female engineer over allegations of “pervasive harassment”
Tesla has been sued by a female engineer who alleges that a climate of “pervasive harassment” has impeded her career advancement. This lawsuit is one more in a series of recent accusations by females against Silicon Valley technology companies.
Update: Tesla issues an official response to the lawsuit
AJ Vandermeyden, 33, whose career at Tesla began in 2013 and continues today, has come forward at a time when nondisclosure statements prohibit most internal accounting of technology sector working conditions. Among Vandermeyden’s claims are a lower salary than males at comparable job assignments, promotions based on gender rather than qualifications, and a cultural climate where a female who raises concerns becomes the object of internal human resources scrutiny.
Her complaints include male co-workers engaging in sexual harassment that goes unaddressed by human resources. Vandermeyden insists she is dedicated to Tesla, which is part of her motivation for coming forward to advocate for fair treatment and reforms. The engineer owns a Tesla Model S and has a reservation for the upcoming Tesla Model 3. “Until somebody stands up, nothing is going to change,” she said in a recent interview to The Guardian about the discrimination lawsuit she filed last year. “I’m an advocate of Tesla. I really do believe they are doing great things. That said, I can’t turn a blind eye if there’s something fundamentally wrong going on.” She acknowledges that she may face serious risks for making the public aware of her lawsuit against Tesla.
AJ Vandermeyden sits in her Tesla outside her family’s home in San Carlos, California. Photograph: Ramin Talaie for the Guardian
Vandermeyden’s lawyer, Therese Lawless, states that many females in similar positions choose not to speak up. “It’s very difficult for women to come forward. They’re concerned that their career is going to be hindered or jeopardized.”
Vendermeyden moved up through the Tesla ranks to a manufacturing engineering position in the general assembly department, where she was paid less than the male engineers whose position and responsibilities she had assumed. This structure of strong relative percentages wages of males to females is typical throughout the Tesla organization, where its highest paid and most prestigious positions are held by males, with only two out of thirty vice-presidents self-describing as female. In Vandermeyden’s case, it was common for her to be the only female in meetings with forty to fifty males.
She outlined how this male-centric Tesla workplace can be hostile to women and dismissive when discussions around barriers to female workplace equality are raised. The response, she says, is often: “‘We’re focused on making cars. We don’t have time to deal with all this other stuff.’”
The complaint, which was filed in autumn, 2016, alleges that, although Vandermeyden designed a solution to compensate for inadequacies in vehicle quality testing which had been overlooked by supervisors and male engineers, she was not recognized for her problem-solving at the time of performance reviews. Instead, her lawsuit claims that Tesla retaliated against her for being a “whistleblower” when she raised concerns about these cars “sold in a defective state.” The result? Males were granted positions above her, according to the complaint, which her lawyers indicate is a pattern in which she and other female engineers were denied promotions even though they were “equally or more qualified” than the males. The lawsuit outlines how Tesla denied her overtime pay, rest breaks, and meal periods when she worked in sales, as well.
She also experienced “unwelcome and pervasive harassment by men on the factory floor including but not limited to inappropriate language, whistling, and cat calls,” the lawsuit says. Objections about sexual harassment, which she raised in 2015, went unheeded. Instead, Vandermeyden was told that, in order to advance her position, she must achieve what she felt was an unattainable factory performance standard, one that was not expected of male engineers. Despite the positive performance evaluations she received, Vandermeyden concluded that her best opportunities for career advancement and overcoming institutional barriers were to transfer to the purchasing department, her current position at Tesla, Inc.
Tesla is not alone in its alleged imbalanced gender culture. Tensions at Uber emerged last week when former engineer Susan Fowler wrote a blog post in which she chronicled a year of work at Uber. In that narrative, she described a chaotic internal culture, a human resources department that made excuses for sexual harassment, frequent episodes where victims were blamed, and a pattern of promotions based on insider preference rather than data-driven performance. Uber CEO Travis Kalanick this week addressed a group of 100+ Uber female engineers to listen to their concerns. Kalanick offered some concessions during his meeting with the female engineers. “So I empathize with you, but I can never fully understand, and I get that. I want to root out the injustice. I want to get at the people who are making this place a bad place. And you have my commitment to make that happen.”
Vandermeyden says, “It’s shocking in this day and age that this is still a fight we have to have.” Her statement acknowledges that any company with more than 30,000 employees will necessarily have a small number of individuals who make claims against the company. Yet, “that does not mean those claims have merit,” the statement adds. “Equal pay is something that is essentially in the back of your mind every single day. You have all these data points showing how you’ve exceeded some of the predecessors and improved on the system. It wears on you.”
Tesla CEO Elon Musk found himself embroiled in another employment controversy earlier this month in which an employee complained of unfair working conditions and discussed how other workers have approached the UAW about possible unionization. Musk used Twitter to wonder aloud whether that complainant was fact or fake news, a Tesla employee or a UAW shill.
Vandermeyden admits she wonders about her future at Tesla. “Half the time when I walk into work, I wonder if my badge is going to work.”
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
