A Black former factory worker at Tesla has been denied a third trial in his race discrimination lawsuit against the company by a California federal judge, who rejected his claims of misconduct by Tesla’s lawyers. US District Judge William Orrick in San Francisco upheld the $3.2M verdict awarded to plaintiff Owen Diaz in April, while also rejecting Tesla’s attempt to halve the award.
The decision puts an end to another lengthy trial for the electric carmaker but brings renewed attention to the case, which is one of several alleging racial harassment at Tesla’s Fremont assembly plant.
In upholding the verdict, Orrick stated it was justified “in light of the endemic racism at the Tesla factory and Tesla’s repeated failure to rectify it.” Diaz, a former elevator operator, had alleged daily racist slurs and graffiti and claimed Tesla ignored his complaints.
Despite losing the bid for a new trial, the $3.2M award was considered significant for a race discrimination case and highlighted the severity of the harassment alleged by Diaz, according to his lawyer, Lawrence Organ.
Tesla has consistently denied wrongdoing and stated that it does not tolerate discrimination, taking worker complaints seriously. The company faces other lawsuits related to allegations of racial and sexual harassment at its Fremont plant and other facilities, including a proposed class action by Black workers and a lawsuit by a California state agency alleging widespread race discrimination at the Fremont plant, which Tesla contends is politically motivated.
