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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 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.
