Tesla faces trial over alleged race discrimination against black workers
Tesla faces a California trial over alleged racial harassment, unequal pay and limited promotion opportunities for black workers at its Fremont factory.
Raja Awais Ali
9/21/20263 min read
Tesla faces trial over alleged race discrimination against black workers
Tesla faces a race discrimination trial in California over allegations that it harassed and discriminated against black workers in the company’s Fremont factory who were denied promotions.
The civil rights department of the state of California filed the allegations against Tesla in 2022, and the trial is scheduled to start on September 21, 2026, in the Alameda County Superior Court in Oakland, before Judge Peter Borkon. The hearing will conclude on October 30 and will be decided by the judge, not a jury.
The state’s department alleges that the black workers at Tesla’s Fremont factory have been subjected to racially charged graffiti, taunts, and acts of harassment.
Furthermore, the CRD alleges that Tesla failed to take appropriate action to stop and penalize racially charged conduct in the workplace, despite numerous complaints.
In addition, the CRD alleged that Tesla subjected black workers to the lowest-paying and most undesirable jobs with the least opportunity for advancement, based on the information provided in the court papers for the case.
The CRD also alleged that black workers were significantly underrepresented for executive, managerial, and other professional occupations at Tesla.
According to the state’s department, there are over 15,000 Tesla employees working in Fremont, in addition to those working for the company’s contractors.
The CRD alleges that black workers were heavily overrepresented for the lowest-paying, most undesirable jobs, while being significantly underrepresented for executive, managerial, and professional occupations.
The state’s department made numerous allegations about pay disparities in the case.
According to a statement issued by the CRD in May 2026, an analysis of pay data between June 2018 and June 2024 revealed that the monthly compensation of black workers was, on average, $1,533 lower than that of their white counterparts. ($1,533 is the figure cited by the state in its allegations and evidence in the case, not a finding of liability against Tesla.)
Tesla has denied the allegations, claiming that it does not engage in discriminatory practices and that those who have been found to discriminate have been terminated. Tesla and its attorneys declined to comment on the most recent filing.
If Tesla is found guilty, the sums in California could be astronomical since there is no cap on the amount that may be awarded to employees under California law. The company may be forced to pay damages to thousands of employees if the court rules in favor of the state.
California is not the only jurisdiction to have levied charges against Tesla in recent years; the Equal Employment Opportunity Commission (EEOC) is currently suing the electric vehicle manufacturer for allegedly engaging in a pattern of conduct that subjected black factory workers to racial harassment. Additionally, there have been tens of thousands of individual employee filings with comparable accusations.
It has filed class-action litigation on behalf of more than 6,000 black workers at Tesla. In contrast, Judge Borkon ruled last year that the case could not proceed as a class action in 2025, reversing a previous ruling that allowed it to do so.
Individual employee cases, meanwhile, resulted in huge awards or settlements in favor of the employees.
For example, one of Tesla’s former elevator operators received $136.9 million by a jury in 2021 after alleging race discrimination. Tesla challenged the award, and a federal judge later reduced the damages to $15 million in damages and a new trial was ordered after the rejected his claim for a lower sum.
The California Civil Rights Department’s case against Tesla covers a wide range of allegations, from harassment and discrimination to retaliation against black workers in the state. The California Civil Rights Department investigated for three years before bringing the case against Tesla in 2022.
The court will review the charges and evidence during the trial, which will consider whether Tesla violated California’s civil rights and employment laws. The case’s hearing will continue until October 30, at which point the court will rule on whether Tesla is responsible for the damages it is accused of causing to the employees.
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