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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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Elon Musk offers to pay TSA salaries as government shutdown leaves agents without paychecks

Elon Musk offered to personally cover TSA salaries as the DHS shutdown deepens travel chaos nationwide.

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Elon Musk says that he is willing to personally cover the salaries of Transportation Security Administration (TSA) workers caught in the crossfire of a partial government shutdown that has now dragged on for over a month. “I would like to offer to pay the salaries of TSA personnel during this funding impasse that is negatively affecting the lives of so many Americans at airports throughout the country,” Musk wrote.


The offer arrives as Congress let funding expire for the Department of Homeland Security on February 14, amid a disagreement over immigration enforcement, leaving most TSA employees classified as essential and on duty but working without pay. The timing could not be more disruptive, as the shutdown is colliding directly with spring break travel season when millions of Americans are in the air.

This is not the first time TSA workers have endured this kind of hardship. TSA agents are being asked to work without pay until congressional action unblocks their paychecks, having previously held out through the longest government shutdown in U.S. history at 43 days. The pattern reveals a systemic failure in how Congress funds critical security infrastructure, and Musk’s offer shines a spotlight on that recurring failure at a moment when the public is directly feeling its effects through long lines and terminal closures.

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Whether Musk can legally follow through remains unclear, as federal law generally prohibits government employees from receiving outside compensation related to their official duties.

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Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry

Tesla, SpaceX, and xAI unveiled TERAFAB, a $25B chip factory targeting one terawatt of AI compute annually.

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Tesla TERAFAB Factory in Austin, Texas

Elon Musk took the stage over the weekend at the defunct Seaholm Power Plant in Austin, Texas, to officially unveil TERAFAB, a $20-25 billion joint venture between Tesla, SpaceX, and xAI that he described as “the most epic chip building exercise in history by far.” The announcement marks the most ambitious infrastructure bet Musk has made since Gigafactory 1 in Sparks, Nevada, and it fuses three of his companies into a single, vertically integrated AI hardware machine for the first time.

TERAFAB is designed to consolidate every stage of semiconductor production under one roof, including chip design, lithography, fabrication, memory production, advanced packaging, and testing.  At full capacity, the facility would scale to roughly 70% of the global output from the current world’s largest semiconductor foundry from Taiwan Semiconductor Manufacturing Company (TSMC).

Elon Musk’s stated goal is one terawatt of computing power annually, split between Tesla’s AI5 inference chips for vehicles and Optimus robots, and D3 chips built specifically for SpaceXAI’s orbital satellite constellation.

Tesla Terafab set for launch: Inside the $20B AI chip factory that will reshape the auto industry

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The logic behind the merger of these three entities is rooted in a supply chain crisis Musk has been signaling for over a year. At Tesla’s Q4 2025 earnings call, he warned investors that external chip capacity from TSMC, Samsung, and Micron would hit a ceiling within three to four years. “We’re very grateful to our existing supply chain, to Samsung, TSMC, Micron and others,” Musk acknowledged at the Terafab event, “but there’s a maximum rate at which they’re comfortable expanding.” Building in-house was, in his framing, not a strategic option, but a necessity.

The space angle is where the announcement becomes genuinely unprecedented. Musk said 80% of Terafab’s compute output would be directed toward space-based orbital AI satellites, arguing that solar irradiance in space is roughly 5x greater than at Earth’s surface, and that heat rejection in vacuum makes thermal scaling viable. This directly feeds the SpaceXAI vision, which is betting that within two to three years, running AI workloads in orbit will be cheaper than doing so on the ground. The satellites, powered by constant solar energy, would effectively turn low Earth orbit into the world’s largest data center.

Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI

Historically, this announcement threads together every major Musk initiative of the past two years: the xAI-SpaceX merger, Tesla’s $2.9 billion solar equipment talks with Chinese suppliers, the 100 GW domestic solar manufacturing push, the Optimus humanoid robot program, and Starship’s development. TERAFAB is the capstone that ties them into a single coherent architecture — chips made on Earth, launched by SpaceX, powered by Tesla solar, run by xAI, and ultimately extended to the Moon.

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“I want us to live long enough to see the mass driver on the moon, because that’s going to be incredibly epic,”Musk said during the presentation.

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Rolls-Royce makes shocking move on its EV future

When Rolls-Royce unveiled its first all-electric model, the Spectre, in 2022, former CEO Torsten Müller-Ötvös declared the brand would cease production of internal combustion engine vehicles by the end of the decade.

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Rolls Royce Wheels
Credit: BMW Group

Rolls-Royce made a shocking move on its EV future after planning to go all-electric by the end of the decade. Now, the company is tempering its expectations for electric vehicles, and its CEO is aiming to lean on its legacy of high-powered combustion engines to lead it into the future.

In a significant reversal, Rolls-Royce Motor Cars has scrapped its ambitious plan to become an all-electric manufacturer by 2030. The luxury British marque announced the decision amid sustained customer demand for traditional combustion engines and shifting regulatory landscapes.

When Rolls-Royce unveiled its first all-electric model, the Spectre, in 2022, former CEO Torsten Müller-Ötvös declared the brand would cease production of internal combustion engine vehicles by the end of the decade.

The move aligned with the industry’s broader push toward electrification, promising silent, effortless power befitting the “Rolls-Royce of cars.”

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However, new CEO Chris Brownridge, who assumed the role in late 2023, has reversed course. “We can respond to our client demand … we build what is ordered,” Brownridge stated.

The company will continue offering its iconic V12 engines, which remain a cornerstone of its heritage and appeal to discerning buyers who appreciate the distinctive sound and character. He noted the original pledge was “right at the time,” but “the legislation has changed.”

While not abandoning electric vehicles entirely, the Spectre remains in production, with an electric Cullinan option forthcoming; the decision marks the end of a strict all-EV timeline. Relaxed emissions regulations and slowing EV demand, evidenced by a 47 percent drop in Spectre sales to 1,002 units in 2025, forced the reconsideration.

It was a sign that perhaps Rolls-Royce owners were not inclined to believe that the company’s all-EV future was the right move.

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Rolls Royce customers want more EVs, says company CEO

Rolls-Royce joins a growing roster of automakers reevaluating aggressive electrification targets.

Fellow luxury brand Bentley has pushed its full electrification from 2030 to 2035, while continuing to offer hybrids and ICE models. Mercedes-Benz walked back its 2030 all-EV goal, now aiming for about 50% electrified sales while keeping combustion engines into the 2030s. Porsche has abandoned its 80% EV sales target by 2030, delaying models and extending hybrids.

Mainstream giants are following suit. Honda canceled its U.S. EV plans, including the 0-Series and Acura RSX, facing a $15.7 billion hit as it doubles down on hybrids. Ford and General Motors have incurred tens of billions in writedowns, canceling models and pivoting to hybrids amid an industry total exceeding $70 billion in charges.

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This trend reflects a pragmatic shift driven by infrastructure gaps, consumer preferences, and policy changes. In the ultra-luxury segment, where emotional connection reigns, automakers are prioritizing flexibility over rigid deadlines, ensuring brands like Rolls-Royce evolve without alienating their core clientele.

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