Tesla hit by another racial discrimination lawsuit amid poor sale

San Francisco: Elon Musk-run Tesla has been hit by another gender discrimination lawsuit after dozens of current and former employees alleged the electric car giant operates under a ‘pre-Civil Rights’ atmosphere of racial discrimination as a standard operating practice. The mass-action lawsuit, filed in Alameda Superior Court in California in the US, alleged the plaintiffs […]

San Francisco: Elon Musk-run Tesla has been hit by another gender discrimination lawsuit after dozens of current and former employees alleged the electric car giant operates under a ‘pre-Civil Rights’ atmosphere of racial discrimination as a standard operating practice.

The mass-action lawsuit, filed in Alameda Superior Court in California in the US, alleged the plaintiffs were subjected to racially motivated harassment and intimidation in Tesla factories which were transformed into racially hostile work environments.

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The lawsuit names tech giant Tesla, as well as managers and supervisors who allegedly perpetuated constant racism and discrimination at Tesla.

“It’s hard to imagine a workplace culture that these hard-working people had to endure day after day, having to live through racist comments and abusive behaviour,” said attorney Mike Arias.
“Hearing story after story of employees being subjected to this level of disgusting and threatening behaviour and language is still almost unbelievable.,” Arias said in a statement.

The alleged racial abuse and harassment includes African American and Hispanic employees being subjected to offensive racist comments and behaviour by colleagues, managers, supervisors, and even HR employees on a regular basis.

The complaint included allegations of offensive and derogatory behaviour and language that people of colour were forced to endure while working for Tesla.

“These employees simply wanted to put in an honest day’s work for an honest day’s pay, and instead they were treated horribly by co-workers, supervisors, and even HR representatives,” said attorney Sahar Malek. “This can’t go ignored.”

Earlier this year, California’s Department of Fair Employment and Housing (DFEH) filed a lawsuit against Tesla, claiming that its Fremont factory is a “racially segregated environment where Black workers are subjected to racial slurs and discriminated against”.

Tesla is also under investigation by the US Equal Employment Opportunity Commission (EEOC).

Last year, a Black employee was awarded a reduced payout of $15 million in a case against Tesla for not doing enough to prevent racial discrimination.

The fresh lawsuit comes as Tesla saw about an 18 per cent drop in EV deliveries in the second quarter (Q2) this year amid supply chain woes and China lockdowns.

This is the first time in two years that Tesla deliveries have fallen quarter over quarter.