News
The DFEH’s case against Tesla has been filed, and its allegations are very, very serious
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.
“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.”
“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.”
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
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
News
Tesla CEO Elon Musk says flying cars are coming
Tesla CEO Elon Musk said that flying cars will be coming to the market, something that his own company has hinted at previously.
Musk said on X, in response to a post that read, “We were promised flying cars and all we got is infinite superintelligence for everyone,” “You will get flying cars.”
You will get flying cars
— Elon Musk (@elonmusk) August 12, 2026
The post rang back to when Musk teased flying and hovering capabilities for the Tesla Roadster, the company’s supercar that has been delayed more times than anyone cares to count. It was set for an unveiling earlier this year, but it was then pushed back to August. There is still no sign of it coming.
However, that does not mean it won’t. But one of the biggest features of the Roadster that was teased was a SpaceX package that featured cold gas thrusters on the rear end that would help with white-knuckle acceleration. Another set would face the ground and would help the Roadster gain small bits of altitude, potentially helpful to jump over obstacles.
Elon Musk hints at Tesla Roadster’s “hovering” abilities in SpaceX package
But it is not a straightforward thing for Musk. As a serial entrepreneur, he tends to spend his time on major disruptors; currently, his largest projects are artificial intelligence and compute power, as well as SpaceX’s launches that will eventually make life multiplanetary.
In the past, he has been critical of flying cars and has been in favor of tunnels, one of the big reasons he started the Boring Company. In 2017 at a TED talk, he said:
“There is a challenge with flying cars in that they’ll be quite noisy. The wind force generated will be very high. Let’s just say that if something’s flying over your head, if there are a whole bunch of flying cars all over the place, that is not an anxiety-reducing situation…You’re thinking, ‘Did they service their hubcap? Or is it going to come off and guillotine me as they’re flying past?’”
However, he’s never been against them. He has also said he’s in favor of both tunnels and flying cars.
Contrary to press reports, I’m not against flying cars. Just said it was important to consider both pros and cons.
— Elon Musk (@elonmusk) March 24, 2015
Most recently, Musk said that anyone who wants a flying car should be able to get one. This was stated last October on the Joe Rogan Experience:
“My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars… I think if Peter wants a flying car, we should be able to buy one.”
Whether the Roadster will be Tesla’s flying car or potentially another one remains in the mind of Musk. Of course, the Roadster will have to make its way to production lines before we find out.
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
Investor's Corner
Tesla has one big financial question to answer for investors: Morgan Stanley
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
