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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 Semi is already winning over truck drivers
The consensus among participants is clear: the Semi feels quieter, quicker, and far less physically demanding than diesel rigs while delivering three times the power and dramatically lower operating costs.
Tesla’s all-electric Semi is proving more than just a flashy concept as it is winning converts among the professionals who know trucks best.
As fleets roll out Pilot Programs for Tesla across North America, drivers are raving about the Class 8 electric truck’s unique features, including a centered driver’s seat, massive touchscreen visibility, instant torque, and absence of gear-shifting fatigue.
These features are transforming long days behind the wheel into noticeably easier, less stressful shifts.
Tesla Semi pricing revealed after company uncovers trim levels
In a recent Wall Street Journal profile of early pilots, Dakota Shearer of IMC Logistics described backing out of a tight spot he had mistakenly entered:
“I backed right out of there, no problem. It’s like I’d never done it in the first place. That right there showed me that the technology the Tesla has makes a big difference.”
His colleague Angel Rodriguez of Hight Logistics, who switched from a 13-speed diesel, agreed:
“It’s just easier on your body. It’s less stressful because you’re not really having to engage the clutch and the stick shift.”
Veteran drivers in other tests echo the same enthusiasm. Tom Sterba, a Senior Driver at Saia, spent days testing the Semi and came away impressed with the navigation and overall feel:
“The navigation systems in these trucks are just unbelievable. That’s what I love about it.”
Sterba summed up the experience with a line that has since gone viral among trucking circles:
“I hope I retire in this truck.”
Pilot programs with ArcBest, thyssenkrupp Supply Chain Services, and Mone Transport delivered similar feedback. Drivers consistently praised the center-seat layout for eliminating blind spots, the smooth acceleration, and the overall comfort and safety.
Real-world data backed the hype, as ArcBest logged thousands of miles at efficient consumption rates, even over the challenging routes, like Donner Pass, while other fleets beat Tesla’s own efficiency targets.
The consensus among participants is clear: the Semi feels quieter, quicker, and far less physically demanding than diesel rigs while delivering three times the power and dramatically lower operating costs.
The latest chapter in the Semi’s story arrived just days ago on Jay Leno’s Garage, as Leno became the first outsider to drive the updated long-range production model, joined by Tesla Chief Designer Franz von Holzhausen, and Semi Program Director Dan Priestley.
Tesla reveals various improvements to the Semi in new piece with Jay Leno
The episode revealed major upgrades heading to volume production this year: the truck sheds roughly 1,000 pounds, adopts a 48-volt architecture, switches to fully electric steering with Cybertruck-derived actuators, and uses 4680 battery cells engineered for an over-one-million-mile lifespan.
Aerodynamics improved, enabling a 500-mile range on the long-haul version, and about 325 miles on the shorter-wheelbase standard-range model. Megachargers can now deliver up to 1.2 megawatts, adding roughly 300 miles in about 30 minutes.
Leno hauled heavy loads and marveled at the turning radius and effortless power delivery. “I don’t feel like I’m pulling anything,” he said during the episode.
With hundreds of Semis already accumulating over 13.5 million fleet miles and high uptime, the future of heavy-duty trucking looks electric. Drivers are giving raving reviews, and they’re ready to climb aboard the electric trucking industry for good.
Investor's Corner
Tesla and SpaceX to merge in 2027, Wall Street analyst predicts
The move, Ives argues, is no longer a distant possibility but a logical next step, fueled by deepening operational ties, shared AI ambitions, and Elon Musk’s vision for dominating the next era of technology.
Tesla and SpaceX are two of Elon Musk’s most popular and notable companies, but a new note from one Wall Street analyst claims the two companies will become one sometime next year, as 2027 could see the dawn of a new horizon.
In a bold new research note, Wedbush analyst Dan Ives has reaffirmed his long-standing prediction: Tesla and SpaceX will merge in 2027.
The move, Ives argues, is no longer a distant possibility but a logical next step, fueled by deepening operational ties, shared AI ambitions, and Elon Musk’s vision for dominating the next era of technology.
He writes:
“Still Expect Tesla and SpaceX to Merge in 2027. We continue to believe that SpaceX and Tesla will eventually merge into one company in 2027 with the groundwork already in place for both operations to become one organization. Tesla already owns a stake in SpaceX after the company’s $2 billion investment in xAI got converted to SpaceX shares following SpaceX’s acquisition of xAI earlier this year initially tying both of Musk’s ventures closer together but still represents <1% of SpaceX’s expected valuation. The recent announcement of a joint Terafab facility between SpaceX and Tesla further ties both operations together making it more feasible to merge operations given the now existing overlap being built out across the two with this the first step.”
The groundwork is already being laid. Earlier this year, SpaceX acquired xAI, converting Tesla’s $2 billion investment in the AI startup into a small equity stake, less than 1 percent, in SpaceX.
Regulatory filings cleared the transaction in March 2026, formally linking the two Musk-led companies financially for the first time. Then came the announcement of a joint TERAFAB facility in Austin, Texas: two advanced chip factories, one dedicated to Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
Ives calls Terafab the “first step” toward full operational integration.
SpaceX’s impending IPO, expected as soon as mid-June 2026, will turbocharge these plans. The company aims to raise approximately $75 billion at a roughly $1.75 trillion valuation, far exceeding earlier estimates.
Proceeds will fund Starship rocket flights, a NASA-contracted lunar base, expanded Starlink services across maritime, aviation, and direct-to-mobile applications, and crucially, orbital AI infrastructure
A major driver is the exploding demand for AI compute. U.S. data centers are projected to consume 470 TWh of electricity by 2030, constrained by power grids and land.
🚨 Wedbush’s Dan Ives says that Tesla and SpaceX will merge in 2027. SpaceX will IPO soon, his new note says:
“According to media reports, SpaceX could file a prospectus for an IPO imminently with the goal of raising ~$75 billion above the prior expectation of ~$50 billion…
— TESLARATI (@Teslarati) March 27, 2026
SpaceX’s strategy, launching millions of solar-powered satellites to host data centers in orbit, bypasses Earth’s energy bottlenecks. Solar energy captured in space avoids atmospheric losses and day-night cycles, offering a scalable solution for AI training and inference.
The xAI acquisition ties directly into this vision, positioning the combined entity as a leader in extraterrestrial computing.
The merger would create a formidable conglomerate spanning electric vehicles, robotics, satellite communications, human spaceflight, and defense.
Ives highlights SpaceX’s role in the Trump administration’s “Golden Dome” missile defense shield, which would leverage Starlink satellites for tracking.
For Tesla, access to SpaceX’s launch cadence and orbital assets could accelerate autonomous driving, Robotaxi fleets, and Optimus deployment.
Musk, who has signaled his desire to own roughly 25 percent of Tesla to steer its AI future, views the combination as essential to overcoming fragmented regulatory scrutiny from the FTC and DOJ.
Challenges remain. Antitrust hurdles could delay or reshape the deal, and shareholder approvals on both sides would be required. Yet Ives remains bullish, maintaining an Outperform rating on Tesla with a $600 price target, implying substantial upside from current levels. The analyst sees the merger as the “holy grail” for consolidating Musk’s disruptive tech empire.
If realized, a 2027 Tesla-SpaceX union would not only reshape corporate boundaries but redefine humanity’s trajectory in AI and space exploration. It would mark the moment two pioneering companies become one unstoppable force, pushing the limits of what’s possible on Earth and beyond.
News
Tesla ‘Killer’ heads to the graveyard as AFEELA taps out
SHM has officially discontinued development of its highly anticipated AFEELA electric vehicles. On March 25, the joint venture between Sony and Honda announced it would halt the AFEELA 1 luxury sedan and a planned SUV model.
There have been many Tesla “Killers” over the years, all of which have either failed to dethrone the automaker from its dominance in the United States, or even make it to the market altogether.
The Sony Honda Mobility (SHM) project, known as AFEELA, is the latest to make it to the grave, as the company announced its intentions to abandon the project earlier this week, Bloomberg reported.
SHM has officially discontinued development of its highly anticipated AFEELA electric vehicles. On March 25, the joint venture between Sony and Honda announced it would halt the AFEELA 1 luxury sedan and a planned SUV model.
🚗 Tesla Killers Graveyard:
Sony-Honda AFEELA
The sleek, AI-packed luxury sedan with PlayStation integration. Officially cancelled in March 2026 after Honda scaled back its EV plans.Fisker Ocean
Stylish SUV with solar roof promises. Company filed for bankruptcy in 2024 amid… https://t.co/Om14UhISOy— TESLARATI (@Teslarati) March 26, 2026
The decision follows Honda’s March 12 reassessment of its electrification strategy, which scrapped several upcoming EV programs amid slowing demand, high costs, and shifting market conditions.
SHM stated that it could no longer rely on key Honda technologies and manufacturing assets, leaving “no viable path forward.” Reservation fees for early buyers in California are being fully refunded, and the joint venture’s future is now under review.
Launched with fanfare in 2022, the AFEELA was positioned as a tech-forward premium EV blending Honda’s engineering reliability with Sony’s entertainment and AI expertise.
Prototypes featured advanced autonomous driving systems, immersive in-cabin displays, and even PlayStation integration, earning it early media labels as a potential “Tesla Killer.”
Priced around $90,000, the sedan was slated for limited production at Honda’s Ohio plant with deliveries targeted for late 2026. Industry watchers saw it as a serious challenger to Tesla’s dominance in software, connectivity, and premium appeal.
Yet, like many ambitious EV projects, it fell victim to broader industry headwinds: softening consumer demand, persistent high interest rates, and intense competition from established players.
The AFEELA joins a long list of vehicles once hyped as “Tesla Killers” that failed to deliver. In the late 2010s, Fisker’s second act, the Ocean SUV, promised stylish design and solid-state battery tech but collapsed into bankruptcy in 2024 after production delays, quality issues, and financial shortfalls.
Faraday Future poured billions into the FF 91 luxury sedan, touting it as a hyper-tech rival with unmatched performance and features; the company delivered fewer than 100 vehicles before fading into obscurity.
Lordstown Motors’ Endurance electric pickup generated massive pre-order buzz and Wall Street excitement but imploded after exaggerated range claims, a factory sale, and eventual bankruptcy.
Even Lucid Motors’ Air sedan, frequently called a Tesla slayer for its superior range and luxury, has struggled with sluggish sales and missed growth targets despite strong reviews.
Rivian’s R1T and R1S trucks enjoyed similar early acclaim and a blockbuster IPO, yet production ramp-up challenges and profitability woes have prevented it from dethroning Tesla.
The AFEELA’s quiet demise underscores a harsh reality in the EV sector. While Tesla’s first-mover advantage in software, charging infrastructure, and brand loyalty remains formidable, legacy automakers and tech newcomers alike continue to underestimate the complexities of scaling affordable, desirable electric vehicles.
As market realities force tough choices, the graveyard of “Tesla Killers” grows longer, another reminder that innovation alone is rarely enough to topple an established leader.
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Tesla lands on Fortune’s 2026 Most Innovative Companies and the Cybercab is why
Elon Musk says Tesla is developing a new vehicle: ‘Way cooler than a minivan’
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
