California discrimination trial opens against Tesla over workplace racism allegations
Benzinga · Chris Katje·
Close, Sep 25, 2026
Opening statements began in a trial brought by the California Civil Rights Department against Tesla, with allegations spanning unequal pay, discriminatory promotions, supervisor bullying, worker segregation, and racist imagery at the Fremont factory. The state presented evidence of offensive language and symbols in workplace areas including lockers and lunch tables and called three former Black employees to testify about their experiences. Tesla denies wrongdoing and argues it has previously disciplined and terminated employees involved in misconduct. The trial will extend through October 30 and will be decided by a judge rather than a jury, with no cap on damages; Reuters estimates a state victory could result in tens of millions in damages and policy changes.
- Opening statements began Monday in California Civil Rights Department v. Tesla
- Allegations include unequal pay, discriminatory promotions, supervisor bullying, worker segregation, and racist imagery at the Fremont factory
- The lawsuit was filed in February 2022
- Trial extends through October 30 and will be decided by Judge Peter Borkon without a jury
- Reuters estimates a state victory could yield tens of millions of dollars in damages and policy changes
- Tesla has faced prior racism allegations, including a 2022 case where a federal jury awarded Owen Diaz $137 million, later reduced to $3.2 million on appeal
Sources
- Benzinga · Chris Katje · Sep 22, 2026