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Tesla sued by ex-employee after worker says he was fired for reporting race and safety issues

Tesla exhibits its electric cars and energy products at the 2018 LA Auto Show. [Credit: Christian Prenzler/Teslarati]

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Tesla is being sued by an ex-employee of the Fremont factory and Gigafactory Nevada after the worker alleges he was fired for reporting racial issues and safety discrepancies at the factories.

Marc Cage, an African American who worked at Gigafactory Nevada and Fremont, first claimed to have reported safety violations that could have resulted in massive explosions at the Nevada plant. Cage also said he also had experienced racial harassment at the Fremont factory from management.

“Tesla’s commitments to unrealistic production goals and frantic efforts to ramp up its production, often to make good on rash promises, overrode any commitment to employee safety,” Cage said in the complaint, which was filed in Alameda County Superior Court last Friday, according to Reuters. “Virtually every restroom in Tesla’s Fremont facility contained writings or carvings of racist symbols and slurs, including swastikas and prominent displays of the n-word.”

Claims of racism in Tesla facilities, especially the Fremont Factory, have been reported more frequently over the past few months. After Owen Diaz was awarded a $137 million judgment following his suit against the California-based automaker, more claims of racially-sensitive behavior by Tesla’s management and shift supervisors have been reported.

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Recently, the California Department of Fair Employment and Housing sued Tesla for alleged systemic racial discrimination and harassment at the Fremont factory. In a blog post just days before the suit was filed, Tesla stated the DFEH’s lawsuit was “misguided,” revealing that over the past five years, almost 50 complaints from various employees have made it to the State Agency to investigate Tesla. No instances of misconduct were found, Tesla said.

However, the filed lawsuit was made public just days later, on February 9th. Black and/or African American Tesla workers stated they are often the subject of unfair treatment, assigned to “more physically demanding posts and the lowest-level contract roles, paid less, and more often terminated from employment than other workers.” Workers also stated that racial symbols, including swastikas and other insensitive drawings are visible on everything from lunch tables to production equipment.

Cage vs. Tesla, Inc., 22-CV-007293, was filed in the Superior Court of California, County of Alameda.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

SpaceX-xAI merger discussions in advanced stage: report

The update was initially reported by Bloomberg News, which cited people reportedly familiar with the matter.

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Gage Skidmore, CC BY-SA 4.0 , via Wikimedia Commons

SpaceX is reportedly in advanced discussions to merge with artificial intelligence startup xAI. The talks could reportedly result in an agreement as soon as this week, though discussions remain ongoing.

The update was initially reported by Bloomberg News, which cited people reportedly familiar with the matter.

SpaceX and xAI advanced merger talks

SpaceX and xAI have reportedly informed some investors about plans to potentially combine the two privately held companies, Bloomberg’s sources claimed. Representatives for both companies did not immediately respond to requests for comment.

A merger would unite two of the world’s largest private firms. xAI raised capital at a valuation of about $200 billion in September, while SpaceX was preparing a share sale late last year that valued the rocket company at roughly $800 billion.

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If completed, the merger would bring together SpaceX’s launch and satellite infrastructure with xAI’s computing and model development. This could pave the way for Musk’s vision of deploying data centers in orbit to support large-scale AI workloads.

Musk’s broader consolidation efforts

Elon Musk has increasingly linked his companies around autonomy, AI, and space-based infrastructure. SpaceX is seeking regulatory approval to launch up to one million satellites as part of its long-term plans, as per a recent filing. Such a scale could support space-based computing concepts.

SpaceX has also discussed the feasibility of a potential tie-up with electric vehicle maker Tesla, Bloomberg previously reported. SpaceX has reportedly been preparing for a possible initial public offering (IPO) as well, which could value the company at up to $1.5 trillion. No timeline for SpaceX’s reported IPO plans have been announced yet, however.

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Tesla already has a complete Robotaxi model, and it doesn’t depend on passenger count

That scenario was discussed during the company’s Q4 and FY 2025 earnings call, when executives explained why the majority of Robotaxi rides will only involve one or two people.

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Credit: @AdanGuajardo/X

Tesla already has the pieces in place for a full Robotaxi service that works regardless of passenger count, even if the backbone of the program is a small autonomous two-seater. 

That scenario was discussed during the company’s Q4 and FY 2025 earnings call, when executives explained why the majority of Robotaxi rides will only involve one or two people.

Two-seat Cybercabs make perfect sense

During the Q&A portion of the call, Tesla Vice President of Vehicle Engineering Lars Moravy pointed out that more than 90% of vehicle miles traveled today involve two or fewer passengers. This, the executive noted, directly informed the design of the Cybercab. 

“Autonomy and Cybercab are going to change the global market size and mix quite significantly. I think that’s quite obvious. General transportation is going to be better served by autonomy as it will be safer and cheaper. Over 90% of vehicle miles traveled are with two or fewer passengers now. This is why we designed Cybercab that way,” Moravy said. 

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Elon Musk expanded on the point, emphasizing that there is no fallback for Tesla’s bet on the Cybercab’s autonomous design. He reiterated that the autonomous two seater’s production is expected to start in April and noted that, over time, Tesla expects to produce far more Cybercabs than all of its other vehicles combined.

“Just to add to what Lars said there. The point that Lars made, which is that 90% of miles driven are with one or two passengers or one or two occupants, essentially, is a very important one… So this is clearly, there’s no fallback mechanism here. It’s like this car either drives itself or it does not drive… We would expect over time to make far more CyberCabs than all of our other vehicles combined. Given that 90% of distance driven or distance being distance traveled exactly, no longer driving, is one or two people,” Musk said. 

Tesla’s robotaxi lineup is already here

The more interesting takeaway from the Q4 and FY 2025 earnings call is the fact that Tesla does not need the Cybercab to serve every possible passenger scenario, simply because the company already has a functional Robotaxi model that scales by vehicle type.

The Cybercab will handle the bulk of the Robotaxi network’s trips, but for groups that need three or four seats, the Model Y fills that role. For higher-end or larger-family use cases, the extended-wheelbase Model Y L could cover five or six occupants, provided that Elon Musk greenlights the vehicle for North America. And for even larger groups or commercial transport, Tesla has already unveiled the Robovan, which could seat over ten people.

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Rather than forcing one vehicle to satisfy every use case, Tesla’s approach mirrors how transportation works today. Different vehicles will be used for different needs, while unifying everything under a single autonomous software and fleet platform.

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Tesla Cybercab spotted with interesting charging solution, stimulating discussion

The port is located in the rear of the vehicle and features a manual door and latch for plug-in, and the video shows an employee connecting to a Tesla Supercharger.

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Credit: What's Inside | X

Tesla Cybercab units are being tested publicly on roads throughout various areas of the United States, and a recent sighting of the vehicle’s charging port has certainly stimulated some discussions throughout the community.

The Cybercab is geared toward being a fully-autonomous vehicle, void of a steering wheel or pedals, only operating with the use of the Full Self-Driving suite. Everything from the driving itself to the charging to the cleaning is intended to be operated autonomously.

But a recent sighting of the vehicle has incited some speculation as to whether the vehicle might have some manual features, which would make sense, but let’s take a look:

The port is located in the rear of the vehicle and features a manual door and latch for plug-in, and the video shows an employee connecting to a Tesla Supercharger.

Now, it is important to remember these are prototype vehicles, and not the final product. Additionally, Tesla has said it plans to introduce wireless induction charging in the future, but it is not currently available, so these units need to have some ability to charge.

However, there are some arguments for a charging system like this, especially as the operation of the Cybercab begins after production starts, which is scheduled for April.

Wireless for Operation, Wired for Downtime

It seems ideal to use induction charging when the Cybercab is in operation. As it is for most Tesla owners taking roadtrips, Supercharging stops are only a few minutes long for the most part.

The Cybercab would benefit from more frequent Supercharging stops in between rides while it is operating a ride-sharing program.

Tesla wireless charging patent revealed ahead of Robotaxi unveiling event

However, when the vehicle rolls back to its hub for cleaning and maintenance, standard charging, where it is plugged into a charger of some kind, seems more ideal.

In the 45-minutes that the car is being cleaned and is having maintenance, it could be fully charged and ready for another full shift of rides, grabbing a few miles of range with induction charging when it’s out and about.

Induction Charging Challenges

Induction charging is still something that presents many challenges for companies that use it for anything, including things as trivial as charging cell phones.

While it is convenient, a lot of the charge is lost during heat transfer, which is something that is common with wireless charging solutions. Even in Teslas, the wireless charging mat present in its vehicles has been a common complaint among owners, so much so that the company recently included a feature to turn them off.

Production Timing and Potential Challenges

With Tesla planning to begin Cybercab production in April, the real challenge with the induction charging is whether the company can develop an effective wireless apparatus in that short time frame.

It has been in development for several years, but solving the issue with heat and energy loss is something that is not an easy task.

In the short-term, Tesla could utilize this port for normal Supercharging operation on the Cybercab. Eventually, it could be phased out as induction charging proves to be a more effective and convenient option.

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