📺 Stream EntrepreneurTV for Free 📺

Tesla Says California Intends to Sue the Company Tesla says the lawsuit appears focused on activity at its Fremont, Calif. plant.

By Chloe Arrojado

entrepreneur daily

SOPA Images | Getty Images

On Wednesday, Tesla revealed that the California Department of Fair Employment and Housing (DFEH) intends to file a lawsuit against it. The lawsuit alleges systematic racial discrimination and harassment based on a three-year investigation. Tesla says the suit "appears focused" on alleged misconduct by production associates at the Fremont, Calif. Tesla plant between 2015 and 2019.

"It therefore strains credibility for the agency to now allege, after a three-year investigation, that systematic racial discrimination and harassment somehow existed at Tesla. A narrative spun by the DFEH and a handful of plaintiff firms to generate publicity is not factual proof," the announcement said.

Related: Tesla to Pay More Than $130 Million to Ex-Worker For Racist Treatment: 'Elon Musk, You've Been Put on Notice. Clean That Factory Up.'

A number of lawsuits have put Tesla's working conditions under the spotlight. In November 2021, Former Tesla employee Jessica Barraza came forward with a lawsuit alleging "rampant sexual harassment." Less than a month later, Michaela Curran, Alize Brown, Jessica Brooks, Alisa Blickman, Samira Sheppard and Eden Mederos also came forward with lawsuits, citing sexual comments and other forms of harassment.

Prior to the sexual harassment lawsuits, former Tesla employee Owen Diaz won a $137 million lawsuit in October for discrimination during his employment from 2015 to 2016. In May 2021, Business Insider reported that a Black former Tesla employee was awarded $1 million after alleging company supervisors called him a racial slur.

Tesla CEO Elon Musk has not publicly addressed the lawsuits. However, Tesla's Wednesday announcement noted that the company has "always disciplined and terminated employees who engage in misconduct."

"Tesla strongly opposes all forms of discrimination and harassment and has a dedicated Employee Relations team that responds to and investigates all complaints," the announcement said.

Related: Female Engineer Sues Tesla Over Sexist Culture

Chloe Arrojado

Entrepreneur Staff

Editorial Assistant

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Money & Finance

How to Choose the Right Financial Advisor — A Guide for Entrepreneurs

Use this guide to select a financial advisor who not only understands your unique financial needs but also has the expertise, experience and connections to support your business and personal goals effectively.

Living

Optimize Your Diet and Budget with This $55 Nut Milk Maker

The Venoly comes with a helical grinding blade and serrated edges to create rich, creamy nut milk.

Side Hustle

3 Secrets to Starting a Small Business Side Hustle That Gives Your Day Job a Run for Its Money, According to People Who Did Just That — and Made Millions

Almost anyone can start a side hustle — but only those ready to level up can use it to out-earn their 9-5s.

Business News

Logan Paul's Energy Drink Company Accused of 'Forever Chemicals,' Excessive Caffeine in Class-Action Lawsuits

Prime Hydration is facing two class-action lawsuits. Paul says the suits are "absolute bull."

Leadership

I Went on a Retreat to Reignite My Entrepreneurial Passion. Here's What I Learned That Will Forever Change The Way I Lead.

An international adventure could be exactly what you need to achieve your entrepreneurial goals.

Science & Technology

3 Ways AI Can Make Humans Better (and How it Can Hurt Us)

Business leaders should know the potential drawbacks of AI before diving in head first.