Tesla, owned by tech billionaire Elon Musk, is having a headache to settle a lawsuit related to allegations that the electric vehicle maker engaged in racist behavior at one of its assembly facilities.
At the trial on August 24, California Supreme Court Justice Evelio Grillo said it is likely that he will reject Tesla’s appeal efforts related to the above trouble. According to him, this lawsuit is unlikely to be reversed because it involves thousands of employees and the California Department of Human Rights (CRD) did not notify all complaints against Tesla before CRD sued the company.
Mr. Grillo stressed that more time is needed for him to make a final judgment. Usually, California judges give tentative rulings in writing before hearings take place.
Previously, Tesla filed an appeal against CRD’s lawsuit. The company believes that CRD skipped the step of notifying Tesla in advance of the complaints or allowing the company to resolve these problems.
In February, CRD filed a lawsuit against Tesla, in which the agency alleges that its assembly plant in Fremont, California engaged in racial discrimination. Accordingly, the employees of color at this factory were allegedly subjected to harassment and discrimination regarding the application of disciplinary mechanisms, salaries, bonuses, and promotion opportunities. Tesla has denied the allegation.
In October 2021, the Northern District Court of California ordered Tesla to pay a former black employee $130 million for the damages he suffered. Previously, Owen Diaz, 53, filed a lawsuit against Tesla alleging racist abuse he suffered while at Tesla. However, in April, a state judge reduced the amount of compensation. Mr. Diaz objected to the court’s latest ruling and requested a new trial, scheduled for March 2023.