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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.”
Elon Musk
Tesla’s secretive “Project Crystal Sun” gets a big green light in Texas
Fort Bend County approved four incentive agreements Thursday for Tesla’s proposed $10.1 billion solar factory.
Fort Bend County commissioners on Thursday approved a package of tax incentives for Tesla’s proposed $10.1 billion solar cell factory near Needville, Texas, giving the company one of the last local approvals it needs before it decides where to build. All four Tesla agreements passed 4 to 0.
The votes covered a property tax abatement inside Reinvestment Zone No. 34, a Chapter 381 economic development agreement, a foreign trade zone non-objection paired with payments in lieu of certain taxes, and a separate payment in lieu of taxes “true up” agreement, according to agenda notes from the Fort Bend Commissioners Court meeting.
The project, known internally as “Project Crystal Sun,” would make solar cells and finished modules on roughly 3,000 acres near FM 762 and FM 1994, south of the Brazos River. As Teslarati reported when the filing first surfaced in August, Tesla’s application under the state’s JETI Act splits the investment into $1.5 billion in real property and $8.6 billion in equipment, with 9,712 permanent jobs projected by 2033 and commercial operations targeted for the first quarter of 2029. The plant would handle the full chain from ingot and wafer production through cell testing.
Inside Tesla’s secretive $10 Billion “Project Crystal Sun” filing
Thursday’s approval does not lock in the site. Tesla has told the Texas Comptroller it is still weighing other locations, and site selection adviser David Dennison told Lamar Consolidated ISD trustees in September that the race had narrowed to Fort Bend and one out of state rival with a “very compelling package,” according to the Houston Chronicle. Tesla hopes to decide before the end of 2026, and the incentives still need sign off from the Comptroller and the Governor’s office.
Local officials have now done nearly everything within their control. Commissioners created the reinvestment zone in an August 24 special meeting, with Interim County Judge Daniel Wong formally withdrawing himself over his engineering firm’s past work with Tesla. Lamar CISD trustees voted 7 to 0 on September 15 to advance a JETI agreement that would tax Tesla’s qualifying property at 50 percent of its value for maintenance and operations from 2029 through 2038.
The plant lines up with a target Elon Musk set on Tesla’s Q4 2025 earnings call in January, when he said the company would “work toward getting 100 GW a year of solar cell production, integrating across the entire supply chain from raw materials all the way to finished solar panels.” In March, Tesla was reported to be negotiating a $2.9 billion purchase of Chinese solar manufacturing equipment bound for Texas. The Houston area already hosts Tesla’s Megafactory in Brookshire, where Megapack 3 production has started. Tesla said on its Q3 call that Megapack supply for 2027 is nearly sold out, and Musk wrote on X Thursday that the company is “increasing production of Megapacks as much as possible,” as demand from data centers climbs.
Tesla revealed plans to develop its own maps internally to fix Navigation issues and give owners more control over their routing.
On the company’s Q3 2026 Earnings Call, a question was asked about FSD Navigation issues, particularly speed limit recognition, parking, and routing. These are issues that surface from version to version and seem to be seriously challenging for Tesla’s AI team to resolve.
Tesla’s Head of AI, Ashok Elluswamy, said in response to the question:
“You’re totally right that we shouldn’t be depending on external people’s maps. So we are building our own maps, but not like the same way as OneMoreMap. We are building an entirely new architecture with essentially AI-based mapping and navigation.”
He continued:
“It’s going to be super awesome. It’s going to be integrated with voice. You can talk to it, ask for different routes. It’s going to learn your personalized preferences, plus the fleet preferences. The collective intelligence of all the cars is going to flow into making the maps and navigation super cool.”
Elluswamy said this issue should be confronted, and the mapping should be available for people by the time the v15 release starts deploying to customers.
“And over the next several months,” he added, “it’s just going to take over all of the navigation functions, parking, destination handling. And it will know you better than you know yourself in some regard for the driving task, and then handle it fully.”
Tesla Summon got insanely good in FSD v14.3.2 — Navigation? Not so much
Navigation is perhaps the most notable complaint with FSD, and although it has gotten better, it is still flawed. Much of the time, FSD will take people on routes that are not preferred by the driver, but Tesla tried to combat this with a routing feature in the Summer 2026 Update.
Tesla currently relies on Google for map data, but it is sort of counterintuitive to believe the company would rely on a third party for this. These improvements will be welcome, as routing and navigation have been such a pain point for so many owners for so long.
Quotes via Motley Fool
Tesla Full Self-Driving (Supervised) showed a record attach rate at delivery for new vehicles in the third quarter of 2026.
75 percent of new vehicle deliveries in North America included a subscription to FSD software, up from 55 percent in the prior quarter, a 20-percentage-point sequential gain in the company’s most mature market.
Tesla Q3 2026 Earnings results: in-line revenues, slight beat on EPS
Tesla shed light on the Q3 Shareholder Deck that 75 percent of new deliveries came with an FSD subscription:
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets. “
The higher attach rate accompanied strong growth in the overall FSD consumer base, as active subscriptions rose to 1.75 million, a 67 percent year-over-year increase. For the first time, more than half of paid customers are on the monthly subscription, which is priced at $99 per month in the U.S.
People are buying FSD with a car attached, not the other way around
— Elon Musk (@elonmusk) October 21, 2026
The transition to subscriptions has accelerated since Tesla discontinued the one-time purchase option in most markets earlier this year. The recurring model improves revenue visibility and margins compared with large upfront payments. With three-quarters of North American deliveries now including FSD, the software is now an evidently large contributor to Tesla’s economics and ancillary revenue.
Geographic expansion remains important for further gains. FSD is now available in nine countries in the EU, and more than 100,000 customers have driven over 160 million kilometers. Tesla is pursuing broader EU-wide approval, with a related vote expected in December. Similar progress in additional markets could support higher attach rates beyond North America.
These results came as Tesla had a strong quarterly delivery performance of 486,532 vehicles in the quarter, which came with its largest passenger-vehicle backlog in four years. Battery supply continued to limit volume, but the company has pointed to FSD as a clear difference-maker that is helping sustain demand. As supervised capabilities improve, the attach rate will likely continue to improve.
At face value, it is a key measure of how Tesla is converting sales into autonomy progress.
Tesla’s secretive “Project Crystal Sun” gets a big green light in Texas
Tesla is building its own maps to fix Navigation issues
