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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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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’s newest “Folding V4 Superchargers” are key to its most aggressive expansion yet

Tesla’s folding V4 Supercharger ships 33% more per truck, cuts deployment time and cost significantly.

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Tesla V4 Supercharger installation ramping in Europe

Tesla is rolling out a folding V4 Supercharger design, an engineering change that allows 33% more units to fit on a single delivery truck, cuts deployment time in half, and reduces overall installation cost by roughly 20%.

The folding mechanism addresses one of the least glamorous but most consequential bottlenecks in charging infrastructure: getting hardware from factory floor to job site efficiently. By collapsing the form factor for transit and unfolding into an operational configuration on arrival, the new design dramatically reduces the logistics overhead that has historically slowed Supercharger rollouts, particularly at large or remote sites where multiple units are needed simultaneously.

The timing aligns with a broader acceleration in Tesla’s network strategy. In March 2026, Tesla’s Gigafactory New York produced its final V3 Supercharger cabinet after more than seven years and 15,000 units, pivoting entirely to V4 cabinet production. The V4 cabinet itself is already a generational leap, delivering up to 500 kW per stall for passenger vehicles and up to 1.2 MW for the Tesla Semi, while supporting twice the stalls per cabinet at three times the power density of its predecessor. The folding transport innovation layers logistical efficiency on top of that technical foundation.

Tesla launches first ‘true’ East Coast V4 Supercharger: here’s what that means

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Tesla Charging’s Director Max de Zegher, commenting on the V4 cabinet when it launched, captured the operational philosophy behind these changes: “Posts can peak up to 500kW for cars, but we need less than 1MW across 8 posts to deliver maximum power to cars 99% of the time.” The design philosophy has always been about maximizing real-world throughput, not just peak specs, and the folding transport upgrade extends that thinking into the supply chain itself.

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Elon Musk

The Boring Company clears final Nashville hurdle: Music City loop is full speed ahead

The Boring Company has cleared its final Nashville hurdles, putting the Music City Loop on track for 2026.

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The Boring Company has cleared one of its most significant regulatory milestones yet, securing a key easement from the Music City Center in Nashville just days ago, the latest in a series of approvals that have pushed the Music City Loop project firmly into construction reality.

On March 24, 2026, the Convention Center Authority voted to grant The Boring Company access to an easement along the west side of the Music City Center property, allowing tunneling beneath the privately owned venue. The move follows a unanimous 7-0 vote by the Metro Nashville Airport Authority on February 18, and a joint state and federal approval from the Tennessee Department of Transportation and the Federal Highway Administration on February 25. Together, these green lights have cleared the path for a roughly 10-mile underground tunnel connecting downtown Nashville to Nashville International Airport, with potential extensions into midtown along West End Avenue.

Music City Loop could highlight The Boring Company’s real disruption

Nashville was selected by The Boring Company largely because of its rapid population growth and the strain that growth has placed on surface infrastructure. Traffic has become a persistent problem for residents, convention visitors, and airport travelers alike. The Music City Loop promises an approximately 8-minute underground transit time between downtown and the Nashville International Airport (BNA), removing thousands of vehicles from surface roads daily while operating as a fully electric, zero-emissions system at no cost to taxpayers.

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The project fits squarely within a broader vision Musk has championed for years. In responding to a breakdown of the Loop’s construction costs, Musk posted on X: “Tunnels are so underrated.” The comment reflected a longstanding belief that underground transit represents one of the most cost-effective and scalable infrastructure solutions available. The Boring Company has claimed it can build 13 miles of twin tunnels in Nashville for between $240 million and $300 million total, a fraction of what comparable projects cost elsewhere in the country.

The Las Vegas Loop, The Boring Company’s first operational system, has served as a proof of concept. During the CONEXPO trade show in March 2026, the Vegas Loop transported approximately 82,000 passengers over five days at the Las Vegas Convention Center, demonstrating the system’s capacity during large-scale events. Nashville draws millions of convention visitors and tourists each year, and local business leaders have pointed to that same capacity as a major draw for supporting the project.

The Music City Loop was first announced in July 2025. Construction began within hours of the February 25 state approval, with The Boring Company’s Prufrock tunneling machine already in the ground the same evening. The first operational segment is targeted for late 2026, with the full route expected to be complete by 2029. The project represents one of the largest privately funded infrastructure efforts currently underway in the United States.

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Elon Musk

Elon Musk demands Delaware Judge recuse herself after ‘support’ post celebrating $2B court loss

A banner on the post read “Katie McCormick supports this,” using LinkedIn’s heart-in-hand “support” icon, an endorsement stronger than a simple “like.” Musk’s lawyers argue the action creates “a perception of bias against Mr. Musk,” warranting immediate recusal to preserve judicial impartiality.

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Ministério Das Comunicações, CC BY 2.0 , via Wikimedia Commons

Tesla CEO Elon Musk’s legal team has filed a motion demanding that Delaware Chancellor Kathaleen McCormick disqualify herself from an ongoing high-stakes Tesla shareholder lawsuit.

The filing, submitted March 25, cites an apparent LinkedIn “support” reaction from McCormick’s account to a post celebrating a $2 billion jury verdict against Musk in a separate California securities-fraud case.

The move escalates long-simmering tensions between Musk, Tesla, and the Delaware judiciary, where McCormick previously presided over the landmark challenge to Musk’s record $56 billion 2018 compensation package.

Delaware Supreme Court reinstates Elon Musk’s 2018 Tesla CEO pay package

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The LinkedIn post was written by Harry Plotkin, a Southern California jury consultant who assisted the plaintiffs who sued Musk over 2022 tweets about his Twitter acquisition. Plotkin praised the trial team for “standing up for the little guy against the richest man in the world.”

The New York Post initially reported the story.

A banner on the post read “Katie McCormick supports this,” using LinkedIn’s heart-in-hand “support” icon, an endorsement stronger than a simple “like.” Musk’s lawyers argue the action creates “a perception of bias against Mr. Musk,” warranting immediate recusal to preserve judicial impartiality.

McCormick swiftly denied intentional endorsement. In a letter to attorneys, she stated she was unaware of the interaction until LinkedIn notified her. She wrote:

“I either did not click the ‘support’ icon at all, or I did so accidentally. I do not believe that I did it accidentally.”

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The chancellor maintains the reaction was inadvertent, but critics, including Musk allies, call the explanation implausible given the platform’s deliberate interface.

McCormick’s central role in the Tesla pay-package litigation underscores the stakes. In Tornetta v. Musk, in January 2024, she ruled the 2018 performance-based stock-option grant, potentially worth $56 billion at the time and now valued far higher, was invalid.

The package consisted of 12 tranches of options, each vesting only after Tesla achieved ambitious market-cap and operational milestones. McCormick found Musk exercised “transaction-specific control” over Tesla as a controlling stockholder, the board lacked sufficient independence, and proxy disclosures to shareholders were materially deficient.

Applying the entire-fairness standard, she concluded defendants failed to prove the deal was fair in process or price and ordered full rescission, an “unfathomable” remedy she described as necessary to deter fiduciary breaches.

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After the ruling, Tesla shareholders ratified the package a second time in June 2024. McCormick rejected that ratification in December 2024, holding that post-trial votes could not cure defects.

Tesla appealed. On December 19 of last year, the Delaware Supreme Court unanimously reversed the rescission remedy while largely leaving McCormick’s liability findings intact. The high court deemed total unwinding inequitable and impractical, restoring the package but awarding the plaintiff only nominal $1 damages plus reduced attorneys’ fees. Musk ultimately received the full award.

The current recusal motion arises in yet another Tesla derivative suit before McCormick. Legal observers say granting it could signal heightened scrutiny of judicial social-media activity; denial might reinforce perceptions of an insular Delaware bench.

Broader fallout includes accelerated corporate migration out of Delaware, Musk himself moved Tesla’s incorporation to Texas after the first ruling, and renewed debate over whether the state’s specialized courts remain the gold standard for corporate governance disputes.

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A decision is expected soon; whichever way it lands, the episode highlights the fragile balance between judicial independence and public confidence in high-profile litigation.

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