Tesla In Legal Trouble As It Faces Race Bias Trial

What’s going on:  

On Monday, a jury trial will commence to figure out how much Tesla should pay out to a Black former employee who successfully argued in court that the electric car giant had allowed extreme racial abuse to run rampant in their Fremont, California facility.  

According to Reuters, this case is one of a series of grievances lodged against the organizations owned by tech mogul Elon Musk, alleging issues with his workplace conditions.    

Why it matters:   

A former elevator operator at the Tesla Fremont plant won the case against Tesla in a 2021 trial, citing harassment including racial slurs and racist caricatures. After being awarded $7 million for emotional distress and $130 million in punitive damages, the federal judge lowered the total award to $15 million. 

Refusing to accept the lowered payout, the former worker decided to opt for a new trial on damages.  

How it’ll impact the future:  

Facing numerous allegations of racism from both a proposed class action lawsuit by Black workers and a lawsuit from a California civil rights agency, Tesla is denying any wrongdoing, and has said that the agency’s claim is politically driven.  

There are several claims of relentless racial harassment of Black employees at Tesla’s facility in Fremont.  

These allegations and this ongoing trial could prompt investors to carefully examine employment practices at corporations owned by Elon Musk.