You can be on Entrepreneur’s cover!

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.


This Trauma Doctor Has Seen It All — And in Moments of Failure, He Shares The 2 Things That Help Him Start Again

Here's how an ER doctor grapples with loss, failure and persistence — and how you can do the same.

Money & Finance

7 Easy Ways To Manage Cash Flow Surprises In Your Business

Small businesses should thrive without financial worries. Explore strategies to manage cash flow effectively and keep your business's focus on your operations and long-term goals.

Growing a Business

When Customers Balked at High Prices, This Bubble Tea Maker Educated Them About Quality Ingredients. Now His Flea Market Stand Has Turned Into 3 Permanent Locations.

From day one, Mathew Wong's goal has been to share the authentic bubble tea experience with his community. By staying true to his vision and facing obstacles head-on, he's brought a taste of Asia to customers across three New York City neighborhoods with his company Tea and Milk.


Get an Android Tablet for $120

This powerful tablet can support a wide range of business travel needs.