California Judge Approves Class Action Suit Against Tesla for Alleged Racial Discrimination

In a significant legal development, California Superior Court Judge Noel Wise ruled that approximately 6,000 Black workers could proceed with a class-action lawsuit against Tesla, alleging pervasive racial discrimination at the Fremont plant. The lawsuit, initiated by former employee Marcus Vaughn in 2017, accuses Tesla of ignoring racial slurs, graffiti, and nooses at the workplace. Tesla’s stance has been to deny tolerating harassment, claiming to have terminated employees found guilty of such behaviors.

This ruling, which Tesla can contest, marks a pivotal moment for the electric vehicle giant, potentially exposing it to substantial financial and reputational damages. Additionally, Tesla faces related legal challenges, including a federal case by the U.S. Equal Employment Opportunity Commission and is appealing a $3.2 million verdict in a separate racial harassment lawsuit.