Tesla sued for racial discrimination by US civil rights agency

By Dana Hull

Tesla Inc. was sued by the US Equal Employment Opportunity Commission, which alleges it created a hostile work environment for racial minorities at its California factory.

The agency, formed to protect civil rights in the workplace, said in a lawsuit filed Thursday the electric-vehicle maker subjected Black workers “to severe or pervasive racial harassment.” It also alleged Tesla unfairly retaliated against workers who complained.

Austin-based Tesla first revealed that it faced an investigation by the EEOC in an April 2022 regulatory filing. The agency’s probe of the EV maker predates a separate lawsuit by California’s civil rights agency, accusing the company of ignoring “rampant racism” against Black workers at its factory in Fremont, California, and other facilities throughout the state.

The California officials alleged that Tesla turned a blind eye to years of complaints about racial slurs at its plant, where the electric automaker produces the Model S, X, 3 and Y. Tesla has contended in court that the state exceeded its legal authority and “uses litigation as a bullying tactic and to advance its turf war” with the EEOC.