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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 just gave what is perhaps its biggest signal yet that the launch of the Cybercab, its autonomous ride-hailing-geared car, is imminent.
The Cybercab has been spotted outside of Gigafactory Texas in massive numbers over the past few days, with hundreds of units being stored on property just days after the vehicle received a Certificate of Conformity from the EPA.
Today, things were a bit different.
Cybercabs spotted on Giga Texas property today had an addition: a Cybercab decal on the side, reminiscent of the “Robotaxi” ones that were placed on Model Ys just as the company launched its ride-sharing platform about a year ago.
Giga Texas drone operator Joe Tegtmeyer noticed the change today:
Tesla Cybercabs are now getting “Cybercab” logos on the side of them!
Tesla did the same with Model Ys that were given “Robotaxi” logos: https://t.co/DanANtw1m7 pic.twitter.com/FqOhH0S9Ks
— TESLARATI (@Teslarati) June 19, 2026
Tesla could be signaling that the Cybercab is preparing to enter the Robotaxi fleet in the coming weeks or months with this move. It seems more symbolic than anything; Tesla is ready to throw Cybercabs in the ride-hailing platform just as it did with Model Ys last year.
The addition of the Certificate of Conformity awarded to the Cybercab is another major factor working to Tesla’s advantage. The company now has permission from the EPA to allow the vehicle to operate on public roads and enter the chain of commerce. It’s officially street legal.
Tesla Cybercab specs revealed: range, curb weight, range ratings, and more
The big question that remains is whether Tesla will be able to operate the car without a safety monitor, especially considering it plans to put the car out there without a steering wheel or pedals. With the Cybercab only having a seating capacity of two, it is hard to believe Tesla will even consider putting a Safety Monitor in the car.
It did recently self-certify as Level 4 and has the ability to operate driverless vehicles in the State of Texas under a law that took effect on May 28. You can read more about that here:
Tesla’s Robotaxi dreams just took a massive step toward reality
We’d imagine Cybercabs will be on the roads as soon as July, but August will likely be a better estimate of when the car will be entered into the Cybercab fleet. It all depends at where Tesla is, as they’ve truly prioritized safety with the rollout of the Robotaxi platform.
Elon Musk has publicly questioned Moody’s credit assessments following the rating agency’s decision to assign SpaceX a Baa1 investment-grade rating, two notches above Tesla’s Baa3. The comments came amid discussions comparing the two companies’ financial profiles.
SpaceX earned its first-time Baa1 rating with a stable outlook from Moody’s. The agency highlighted the company’s leadership in orbital launches, the growing recurring revenue from its Starlink satellite network, strong vertical integration, U.S. government contracts, and emerging opportunities in AI infrastructure.
These factors were cited as supporting robust cash flows, margin expansion, and financial flexibility.
Musk responded directly: “Tesla’s credit rating is ridiculously low tbh,” and added, “Yeah, makes no sense. Tesla has over $40B in cash, no debt, and is consistently profitable!” His remarks underscored Tesla’s balance sheet strength and profitability at a time when many traditional automakers continue to report losses in the shift to electric vehicles.
Yeah, makes no sense.
Tesla has over $40B in cash, no debt and is consistently profitable!
— Elon Musk (@elonmusk) June 19, 2026
Tesla maintains a leading position in the global EV market, with diversification into energy and storage, battery technology, and robotics through projects like Optimus. Recent financial updates show the company generated positive free cash flow of $1.4 billion in Q1 2026, supported by operating cash flow of $3.9 billion. Cash and short-term investments stood at approximately $44.7 billion.
Moody’s has affirmed Tesla’s Baa3 issuer rating with a stable outlook in periodic reviews, acknowledging the company’s EV leadership, technology strengths, including AI for autonomous vehicles, solid profitability, and strong liquidity.
Tesla (TSLA) scores Baa3 Moody’s rating for ‘stable’ outlook
However, the agency has also noted challenges in the automotive segment and expectations for margin pressures.
Musk’s critique highlights a common debate about how traditional rating methodologies apply to high-growth, capital-intensive technology companies. SpaceX benefits from long-term government-backed contracts and diversified, recurring revenue streams, while Tesla’s valuation reflects heavy investment in future technologies such as autonomy and robotics.
Both ratings remain investment-grade, yet the one-notch difference has fueled online discussion about potential inconsistencies in evaluating innovative firms.
The exchange comes as SpaceX explores financing options following its recent valuation milestones, while Tesla continues executing on its multi-year roadmap. Musk’s pointed response serves as a reminder that credit ratings, though influential for borrowing costs, represent one lens through which markets assess corporate strength—and that company leaders often view their financial positions through the lens of long-term innovation and cash generation rather than short-term risk metrics alone.
A new report from Reuters claims that a transport authority in Sweden is pushing back against the approval of Tesla’s Full Self-Driving suite because it will travel over speed limits.
The report says the Swedish Transport Administration (TRV) recommends the European Union votes against FSD’s approval. TRV believes it should not be approved until Tesla disables FSD’s ability to speed.
TRV sent a letter to the European Union’s Technical Committee on Motor Vehicles (TCMV), which is set to meet on June 30 to discuss the potential approval of the Tesla FSD suite in the country. Tesla, which has received various approvals in Europe over the past two months, has not provided a comment.
Teslas operating on FSD do travel over the speed limit, depending on the Speed Profile that is chosen. Drivers have the ability to disengage FSD at any point; Tesla specifically states that those supervising the suite are responsible for its actions.
Let’s cut to the chase: humans operating any vehicle speed almost daily in the United States. Realistically, speed limits in the U.S. are more frequently treated as speed minimums. However, other countries are different, and driving behaviors are less aggressive.
TRV believes that “allowing automated systems to systematically exceed legal speed limits…risks undermining both the legal framework and the expected safety benefits of vehicle automation,” the report stated. It’s surprising that Tesla has not received this claim from other countries previously.
This could be a good argument to bring Max Speed back, the setting that previously allowed the driver to choose the absolute fastest the car would travel.
This would still put the responsibility of supervision in the hands of the driver. It would allow the driver to choose whether the car would travel over the speed limit or not, acknowledging that they set the speed, and if they get pulled over, there would be no ability to argue it.
However, it does not seem as if this is something Tesla will do, especially considering many U.S. drivers have requested the feature in an effort to eliminate speeding or at least tone it down. The company has not shown any interest in bringing it back.
Tesla has approvals for FSD in Europe in Estonia, Lithuania, Denmark, the Netherlands, and Belgium.
Tesla Cybercab launch is imminent after latest sighting at Giga Texas
Elon Musk says this part of Tesla ‘makes no sense’
