California's Department of Fair Employment and Housing (DFEH) has filed a lawsuit against Tesla, alleging that Black workers at the company's Fremont factory faced 'rampant racism' that went 'unchecked for years'. The suit, filed on 9 February in Alameda County court, claims workers were subjected to racial slurs, graffiti, and assigned the most physically demanding jobs.
According to the complaint, workers referred to the factory as the 'slaveship' or 'the plantation', where production leads would 'crack the whip'. The DFEH says Tesla's investigations into complaints were not compliant with the law, and that the company has 'continued to deflect and evade responsibility'.
Black workers reported hearing racial slurs up to 100 times a day, and racist graffiti including swastikas and the N-word remained on factory walls for months. The suit also alleges that Black employees were segregated into areas known as 'the dark side' and were less likely to be promoted.
Tesla has called the lawsuit 'misguided', noting that it focuses on alleged misconduct from 2015 to 2019, and that the DFEH has since dismissed dozens of individual discrimination complaints against the company. The company said it does not tolerate harassment and has disciplined or fired workers who engaged in misconduct.
This is not the first time Tesla has faced discrimination allegations, but legal experts say a government lawsuit carries more weight. 'When a single worker sues Tesla, the company may be motivated to sweep the allegations under the rug. But here, the potential for actual, systemic change is much greater,' said Veena Dubal, a labour law professor at the University of California.



