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Tesla plans to appeal $137M payout in race discrimination case

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Tesla is planning to appeal the verdict reached by a Northern District of California jury, which required the automaker to pay out nearly $137 million to Owen Diaz, a former Fremont factory contract employee who stated he suffered racial abuse in the production facility.

On October 4, 2021, a jury found Tesla liable for emotional distress and punitive damages, valuing the payout to Diaz at $6.9 million and $130 million, respectively. Diaz said that employees drew racially sensitive logos and graffiti around and near the plant and also used racial slurs in the facility.

Tesla issued a statement regarding the verdict of Diaz vs. Tesla on the day of the judgment, stating that three witnesses apart from Diaz noted that they heard the use of racial slurs regularly, but that all of the witnesses agreed that the use of some derogatory terms was not appropriate in the workplace. However, they also stated that “most of the time they thought the language was used in a ‘friendly’ manner and usually by African-American colleagues. Diaz made complaints to non-Tesla supervisors and “didn’t make any complaints about the n-word until after he was not hired full-time by Tesla – and after he hired an attorney,” Tesla VP of People Valerie Capers Workman wrote in a blog post.

Tesla responds to $137M jury order over alleged racism in Fremont Factory

Capers Workman also indicated that while living with his children, Diaz recommended they work at Tesla with him, despite the complaints of racial hostility and harassment at the Fremont Factory.

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“While we strongly believe that these facts don’t justify the verdict reached by the jury in San Francisco, we do recognize that in 2015 and 2016 we were not perfect. We’re still not perfect. But we have come a long way from 5 years ago. We continue to grow and improve in how we address employee concerns. Occasionally, we’ll get it wrong, and when that happens we should be held accountable,” she added.

Now, Tesla said in a 10-Q filing with the SEC that it will appeal the decision. The company wrote:

“On October 4, 2021, in a case captioned Diaz v. Tesla, a jury in the Northern District of California returned a verdict of $136.9 million against Tesla on claims by a former contingent worker that he was subjected to race discrimination while assigned to work at Tesla’s Fremont factory from 2015-2016. The Company does not believe that the facts and law justify the verdict and intends to pursue next steps in post-trial motions and on appeal.”

It was unclear until now whether Tesla would appeal the decision, according to the Associated Press.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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BYD profit surges 100.4% as smart EVs drive growth

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BYD-2024-sales-price-war-overcapacity-concerns
(Credit: BYD)

China’s leading automaker, BYD, reported a 100.4% profit surge in the first quarter, partly driven by its smart electric vehicle (EV) features. BYD’s net profit reached 9.2 billion yuan ($1.26 billion), exceeding the company’s earlier forecast of RMB 8.5 billion ($1.1 billion) to RMB 10 billion ($1.3 billion), according to a Friday stock filing.

The Chinese automaker’s revenue for the quarter hit RMB 170.4 billion ($23 billion), up 36.4% year-on-year, though growth slowed from the prior quarter’s 52.7% rise. BYD’s dominance in China grew stronger, with its market share climbing to 13.6% from 12.1% a year earlier. The company’s “God’s Eye” driver-assistance system–now standard across its lineup at no extra cost–and a new supercharging EV platform have fueled its edge.

Industry observers noted that BYD’s strides with God’s Eye and EV supercharging platform have encouraged Leapmotor, Geely, and Toyota to push harder with their affordable smart EVs. BYD’s strategy of slashing prices while enhancing technology has roiled the market, solidifying its lead in China’s fiercely competitive EV sector.

Beyond its home market, BYD aims to export 800,000 vehicles this year. However, its European expansion has faced hurdles. The Chinese company’s rapid response to its European challenges reflects its broader ambition to dominate global EV markets.

BYD’s ability to combine affordability with advanced features has pressured competitors to adapt, intensifying the global race for EV supremacy. In China, BYD’s price war shows no signs of slowing, with its market share gains signaling robust demand for its smart, cost-competitive vehicles. As BYD refines its international strategy, its first-quarter performance underscores its growing influence in the automotive industry.

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Note: BYD sells hybrids and internal combustion engine cars alongside its electric vehicles.

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D.C. suspect faces charges for vandalizing Tesla vehicles

49-year-old Justin Fisher hit 4 Teslas across D.C. in March. Prosecutor says the acts were meant to “suppress political speech.”

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(Credit: Tesla)

A Washington, D.C., man has been charged with vandalizing Tesla vehicles across Northeast D.C., with authorities labeling the acts as domestic terrorism. Tesla vandalism attacks increased in the first quarter.

Justin Fisher, 49, faces four misdemeanor counts of defacing public or private property for incidents between March 1 and March 21, 2025, U.S. Attorney Edward R. Martin Jr. and Metropolitan Police Department Chief Pamela Smith announced.

Court documents outline Fisher’s alleged offenses, which targeted Tesla vehicles owned by multiple victims. The first case of Tesla vandalism occurred on March 1 at 10:11 a.m. in the 200 block of K Street, followed by a second on March 2 at 6:15 p.m. in the 200 block of 11th Street. The third time Fisher reportedly vandalized a Tesla was on March 8 at 8:05 a.m. in the 600-700 blocks of F Street. The last time the suspect vandalized a Tesla was on March 21 at 5:15 p.m. in the 600 block of G Street. Fisher was arrested on April 1, 2025, by the Metropolitan Police Department, which continues to investigate the cases.

“The so-called ‘Tesla Takedown’ is domestic terrorism, and my team is taking it on front and center,” said U.S. Attorney Martin. “These attacks are not just an attack on someone’s property. They are meant to intimidate and suppress political speech and shut down the marketplace of ideas,” Martin said. The U.S. Attorney’s Office for the District of Columbia is prosecuting the case.

“If you target Tesla and break the law, then you can expect consequences,” said Attorney General Pamela Bondi. “This Department of Justice will not tolerate such criminal acts.”

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Fisher appeared in Superior Court and was released on personal recognizance. His initial status hearing is set for June 10, 2025. The misdemeanor charges carry significant weight due to their domestic terrorism designation, signaling a broader crackdown on ideologically driven property crimes. The attacks highlight tensions surrounding Tesla, which has faced scrutiny and admiration alike from the public.

The case underscores the challenges of balancing free expression with criminal accountability. As the investigation unfolds, authorities aim to clarify Fisher’s motives.

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Tesla Robotaxi benefits from Trump’s new self-driving rules

Trump admin eases self-driving rules. Tesla could launch FSD faster. Austin Robotaxi launch now looks even stronger.

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(Credit: Tesla)

The Tesla Robotaxi network will benefit from U.S. President Trump’s new self-driving rules.

The Trump administration is loosening regulations to support U.S. automakers like Tesla in developing self-driving cars. The United States government aims to outpace Chinese competitors in autonomous vehicle development. The policy shift, which was announced by U.S. Transportation Secretary Sean Duffy on Thursday, targets federal safety rules and crash reporting requirements to accelerate autonomous vehicle innovation.

The Transportation Department outlined exemptions allowing U.S. companies to bypass specific safety regulations for self-driving vehicles used in research, demonstrations, and non-commercial settings. Previously, such exemptions were applied mainly to foreign vehicles with standards different from those in the United States. The department also plans to streamline crash reporting rules, which Elon Musk has criticized, and move toward a unified national standard, replacing fragmented state regulations.

“We’re in a race with China to out-innovate, and the stakes couldn’t be higher,” said Transportation Secretary Sean Duffy in a statement. “Our new framework will slash red tape and move us closer to a single national standard.”

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The regulatory changes align with Tesla’s ambitions in autonomous driving, particularly related to its Robotaxi network. On Wednesday, Musk confirmed during a Tesla investor call that the company is prepared to launch self-driving Tesla robotaxis in Austin, Texas, by June. Tesla’s Full Self-Driving (FSD) technology, a cornerstone of its robotaxi plans, could benefit from the eased rules, expediting testing and deployment.

The exemptions are designed to level the playing field for U.S. automakers, giving Tesla and others more flexibility to innovate. The administration aims to foster a competitive environment against Chinese firms advancing in autonomous vehicle technology by simplifying crash reporting and harmonizing regulations. Industry observers note China’s aggressive push for self-driving tech has pressured U.S. policymakers to act.

Tesla’s Austin Robotaxi rollout will be a key testbed for its FSD software under the new regulatory framework. The company has been refining FSD, with recent updates showcasing improved performance. The Transportation Department’s move could accelerate Tesla’s timeline for scaling its autonomous fleet, a critical step toward Musk’s vision of the Robotaxi network.

The policy shift underscores a broader U.S. strategy to maintain technological leadership. With Tesla at the forefront, the loosened rules could reshape the self-driving landscape, positioning American automakers to challenge global rivals.

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