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The DFEH’s case against Tesla has been filed, and its allegations are very, very serious

The Fremont factory. (Credit: Tesla)

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Just a few days ago, Tesla noted in a blog post that the California Department of Fair Employment and Housing (DFEH) is intending to file a lawsuit against the company over alleged systemic racial discrimination and harassment in the its CA facilities. The DFEH’s lawsuit has now been filed, and just as Tesla’s blog post suggested, its accusations are indeed very, very serious. 

The lawsuit, which was electronically filed to the Superior Court of California, County of Alameda on February 9, 2022, pointed out that Tesla is currently the “largest and highest-profile” electric car company in the world. The suit also highlighted that “Tesla’s Fremont factory is the only nonunion major American automotive plant in the country.” And while a job at Tesla is typically seen as a “golden ticket” for those without a technical background or college degree to secure a job in tech and a path to a career and a living wage, there is segregation and a systemic racism issue prevalent in the company’s CA facilities. 

The Department of Fair Employment and Housing alleges that this segregation, as well as the absence of Black and/or African Americans in leadership roles, has resulted in rampant racism being left unchecked for years. 

“As early as 2012, Black and/or African American Tesla workers have complained that Tesla production leads, supervisors, and managers constantly use the n-word and other racial slurs to refer to Black workers. They have complained that swastikas, “KKK,” the n-word, and other racist writing are etched onto walls of restrooms, restroom stalls, lunch tables, and even factory machinery. They have complained that Black and/or African American workers are assigned to more physically demanding posts and the lowest-level contract roles, paid less, and more often terminated from employment than other workers. 

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“They have also complained that Black and/or African American workers are often denied advancement opportunities, and more often and more severely disciplined than non-Black workers. More significantly, these numerous complaints by Black and/or African American workers about racial harassment, racial discrimination, and retaliation lodged over a span of almost a decade have been futile. For example, Defendants turned, and continue to turn, a blind eye to years of complaints from Black workers who protest the commonplace use of racial slurs on the assembly line. Tesla was, and continues to be, slow to clean up racist graffiti with swastikas and other hate symbols scrawled in common areas.” 

Details of the allegations against Tesla were quite shocking, as they include instances that, for all intents and purposes, should have resulted in a quick termination against the perpetrators. This is something that Tesla has reportedly done in the past, as outlined by the company in its response to a $137 million jury verdict, which came as a result of a lawsuit filed by ex-employee Owen Diaz, who accused the company of racial abuse during his tenure around 2015 through 2016. According to Tesla, two contractors behind Diaz’s racial abuse were promptly terminated, while another was suspended following an internal investigation. 

Following are some of the detailed allegations outlined by the DFEH against Tesla. 

“Throughout the day, every day, Black and/or African American workers heard Defendants’ workers, leads, supervisors, and managers make racial slurs and comments about Black workers.27 Examples of the racist language include the n-word, “porch monkey,” “monkey toes,” “boy,” “hood rats,” and “horse hair.” Defendants’ workers, including production leads and supervisors, made references to Black and/or African Americans in racist comments and racist jokes such as “N[ ] word out of the hood,” “from the ghetto,” “Tesla [was] hiring lazy coons,” and “go back to Africa.”

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“Because the factory was racially segregated, Defendants’ workers referred to the areas where many Black and/or African Americans worked as the ‘porch monkey station.’ Defendants’ workers with tattoos of the Confederate flag made their racially incendiary tattoos visible to intimidate Black and/or African American workers. Racial slurs were also dispensed in Spanish and included ‘mayate’ and ‘negrita.’ Additionally, Defendants’ workers referred to the Tesla factory as the ‘slaveship’ or ‘the plantation,’ where Defendants’ production leads ‘crack[ed] the whip.’ Many Black and/or African American workers understood these terms to be references to how Defendants treated its Black and/or African American workers. One Black worker heard these racial slurs as often as 50-100 times a day.

“These Black and/or African American workers also had racial slurs directed at them. These workers were subjected to Defendants’ production associates, leads, and supervisors directly calling them the n-word throughout the day. One worker heard Defendants’ production associates and leads tell her to ‘Shut the fuck up, N[ ],’ and ‘All blacks look alike.’ Another Black worker reported that at least twice Defendants’ workers mocked him for eating watermelon during lunch. They accused him of being lazy, saying, ‘You’re eating watermelon, that’s why you’re lazy.’ These co-workers also speculated about his genitals and referred to him as ‘Mandingo’ or ‘big black guy.’ Another worker heard Defendants’ production lead and production associate crack racist jokes loud enough for others to hear. When he raised the jokes with them, the production associate slapped his shoulder and said it was just a joke. When another Black worker protested to being called a racial slur and asked Defendants’ production associates, leads, and supervisor to refer to him by his name, they retorted, ‘This N[ ] is crazy’ or ‘This N[ ] is tripping.’ They called him a snitch for complaining. 

“Notably, Defendants’ leads, supervisors, and managers were active participants and/or witnesses to these racist comments. Black and/or African American workers reported that Defendants’ leads and supervisors on the production line often said, ‘That stupid N[ ] over there’ or ‘That fucking N[ ], I can’t stand them.’ Regarding a group of Black production associates, Defendants’ supervisor said that “there [was] too many of them in there. They are not Tesla material.” Defendants’ supervisors complained about where Black and/or African American workers were assigned, saying, ‘Monkeys work outside,’ and ‘Monkeys need a coat in cold weather.’ A supervisor pointedly asked one African American worker, ‘Do most Africans have bones through their noses?’ Another African American worker reported that a group of Defendants’ production leads often laughed at her whenever she walked by them. These leads muttered’ N[ ]’ or ‘Shut up, N[ ]’ to her at first. When she started getting awards for her work performance, these leads openly called her these racial slurs. 

“On a daily basis, Black and/or African American workers were confronted with racist writing while working at Tesla. They saw racist graffiti – including’ N[ ],’ ‘KKK,’ swastikas, the Confederate flag, a white supremist skull, ‘go back to Africa,’ and ‘mayate’ – written on the restroom walls, restroom stalls, lockers, workplace benches, workstations, lunch tables, and the break room. These slurs were even etched onto Defendants’ machinery. One Black worker observed ‘hang N[ ]’ penned next to a drawing of a noose in the breakroom restroom. This worker also saw ‘all monkeys work outside’ and ‘fuck N[ ]’ on the breakroom walls. These racial slurs and racial comments, apparent to all who walked by, were left up for months, without Defendants bothering to remove them.” 

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As noted by Tesla in its recent blog post, it would be asking the court to pause the DFEH’s case to ensure that facts and evidence will be heard. The EV maker also noted that despite repeated requests, the DFEH has declined to provide Tesla with specific allegations or the factual basis for its lawsuit. Tesla did note, however, that over the past five years, the DFEH has been asked on almost 50 occasions by individuals who believed that they were discriminated against or harassed to investigate the company. But on every single occasion, the DFEH did not find any misconduct against Tesla. 

Teslarati has sent an inquiry to the California DFEH about its case against Tesla, and why it waited years to file a case against the EV maker considering the gravity of the suit’s accusations. The DFEH’s response would likely be covered in a separate article that would be written in the near future. 

The DFEH’s lawsuit against Tesla can be viewed below. 

DFEH vs Tesla by Simon Alvarez on Scribd

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Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla Q1 Earnings: What Elon Musk and Co. will answer during the call

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Credit: Tesla

Tesla (NASDAQ: TSLA) is set to hold its Earnings Call for the first quarter of 2026 on Wednesday, and there are a lot of interesting things that are swirling around in terms of speculation from investors.

With the company’s executives, including CEO Elon Musk, answering a handful of questions that investors submit through the Say platform, fans want to know a lot of things about a lot of things.

These five questions come from Retail Investors, who are normal, everyday shareholders:

  1. When will we have the Optimus v3 reveal? When will Optimus production start, since we ended the Model S and Model X production earlier than mid-year? What’s the expected Optimus production rate exiting this year? What are the initial targeted skills?
  2. What milestones are you targeting for unsupervised FSD and Robotaxi expansion beyond Austin this year, and how will that drive recurring revenue?
  3. How will Hardware 3 cars reach Unsupervised Full Self-Driving?
  4. When do you expect Unsupervised Full Self-Driving to reach customer cars?
  5. When will Robotaxi expand past its current limited rollout?

Additionally, these are currently the three questions that are slated to be answered by Institutional Firms, which also answer a handful of questions during the call:

  1. Now that FSD has been approved in the Netherlands and is expected to launch across Europe this summer, can you discuss your Robotaxi strategy for the region?
  2. What enabled you to finish the AI5 tapeout early and were there any changes to the original vision? Last week, Elon said AI5 will go into Optimus and the Supercomputer, but one month ago said it would go into the Robotaxi. Has AI5 been dropped from the vehicle roadmap?
  3. Given the recent NHTSA incident filings, can you update us on the Robotaxi safety data? If safety validation remains the primary bottleneck, why not deploy thousands of vehicles to accelerate the removal of the safety driver?

The questions range through every current Tesla project, including FSD expansion and Optimus. However, many of the answers we will get will likely be repetitive answers we’ve heard in the past.

This is especially pertinent when the questions about when Unsupervised FSD will reach customer cars: we know Musk will say that it will happen this year. Is Tesla capable of that? Maybe. But a more transparent answer that is more revealing of a true timeline would be appreciated.

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Hardware 3 owners are anxiously awaiting the arrival of FSD v14 Lite, which was promised to them last year for a release sometime this year.

The Earnings Call is set to take place on Wednesday at market close.

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Elon Musk reveals shocking Tesla Optimus patent detail

What looked promising on paper and in simulations failed to deliver the reliability required for a robot expected to handle delicate tasks like folding laundry, assembling electronics, or assisting in factories and homes.

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Credit: Tesla

Elon Musk revealed a shocking detail on the Tesla Optimus patent that was revealed last week. Despite it being made public for the first time, Musk said the company has already moved on from the design, an incredible truth about the development of new technology: things move fast.

Musk dropped a bombshell about the Tesla Optimus humanoid robot hand patent that was released last week. Musk, candidly replying to a post late at night on X, revealed that what is a new technology to many fans and insiders is actually old news to those developing the tech directly.

“We already changed the design,” Musk said. “This one didn’t actually work.”

Patents, after all, are often viewed as blueprints for future products. Yet Musk revealed that the rolling contact mechanism—intended to provide smooth, low-friction articulation in the fingers—had already been scrapped after real-world testing exposed its shortcomings.

What looked promising on paper and in simulations failed to deliver the reliability required for a robot expected to handle delicate tasks like folding laundry, assembling electronics, or assisting in factories and homes.

The hand has been one of the biggest challenges for Tesla engineers since Optimus development started years ago. Musk has said that there is not enough recognition for how incredible and useful the human hand is, and designing one for a humanoid robot has been the biggest challenge of all.

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Tesla is stumped on how to engineer this Optimus part, but they’re close

This moment underscores the persistent engineering hurdles in achieving reliable humanoid hand dexterity. Human fingers are marvels of evolution: 27 bones, intricate tendons, ligaments, and a network of sensors working in perfect harmony. Replicating that in metal and silicon is extraordinarily difficult.

Rolling contacts promised reduced wear and precise motion, but testing likely revealed issues with durability under repeated stress, grip stability on varied surfaces, or the micro-precision needed for fine motor skills.

These aren’t minor tweaks, but instead they represent fundamental challenges that have plagued robotics teams for decades. Even advanced competitors struggle here—hands remain the Achilles’ heel of most humanoids because the margin for error is razor-thin.

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A fraction of a millimeter off, and a robot drops a glass or fails to button a shirt.

What makes Musk’s reply remarkable is how it signals Tesla’s direct communication style on prototype limitations. While many companies guard failures behind glossy marketing and vague timelines, Tesla openly shares setbacks.

Musk was forthcoming about the failure of this recent design. This transparency builds trust with investors, engineers, and fans. It shows Tesla treats Optimus development like true science: rapid iteration, rigorous testing, and zero tolerance for hype that doesn’t match reality.

The disclosure from Musk also highlights Tesla’s blistering pace of development. By the time the patents are published, which is often over a year after the initial filing, the technology has already evolved.

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Optimus is far from a static product, and it’s a living project advancing weekly.

In the high-stakes race for general-purpose robots, Tesla’s approach stands out. Admitting a finger-joint design “didn’t actually work” isn’t a weakness—it’s confidence.

True innovation demands confronting failure head-on, and Musk just reminded the world that Optimus is being engineered that way. The next version of those hands is already in testing, and it will be better because Tesla isn’t afraid to say what didn’t work.

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Tesla is sending its humanoid Optimus robot to the Boston Marathon

Tesla’s Optimus robot is heading to the Boston Marathon finish line

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Tesla’s Optimus humanoid robot will be stationed at the Tesla showroom at 888 Boylston Street in Boston, right along the final stretch of the Boston Marathon today, ready to cheer on runners and pose for photos with spectators.

According to a Tesla email shared by content creator Sawyer Merritt on X, Optimus will be at the Boston Boylston Street showroom on April 20, coinciding with Marathon Monday weekend. The Boston Marathon finishes on Boylston Street, and the surrounding area draws hundreds of thousands of spectators along with international broadcast coverage. Placing Optimus there puts it in front of a massive public audience at zero advertising cost.

The Tesla showroom is at 888 Boylston Street, between Gloucester Street and Fairfield Street. The final mile of the marathon runs directly along Boylston Street, with runners passing the big stores before reaching the finish line at Copley Square.

Optimus was first announced at Tesla’s AI Day event on August 19, 2021, when Elon Musk presented a vision for a general-purpose robot designed to take on dangerous, repetitive, and unwanted tasks. In March 2026, Optimus appeared at the Appliance and Electronics World Expo in Shanghai, where on-site staff stated that mass production of the robot could begin by the end of 2026. Before that, it showed up at the Tesla Hollywood Diner opening in July 2025 and at a Miami showroom event in December 2025.

Tesla’s well-calculated display of Optimus gives the public a low-pressure first encounter with a robot that Tesla is preparing  to soon deploy at scale. The company has previously indicated plans to manufacture Optimus robots at its Fremont facility at up to 1 million units annually, with an Optimus production line at Gigafactory Texas targeting 10 million units per year.

Tesla showcases Optimus humanoid robot at AWE 2026 in Shanghai

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Musk has said that Optimus “has the potential to be more significant than the vehicle business over time,” and separately that roughly 80 percent of Tesla’s future value will come from the robot program. Whether that holds depends on production execution. For now, Boston gets a preview of what that future looks like, standing at the finish line on Boylston Street while 32,000 runners pass by.

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