Tesla Inc. is undergoing a significant legal proceeding in Oakland, California, after being accused of systemic racial discrimination and harassment towards Black employees at its Fremont assembly plant, according to a report.
The high-stakes trial, brought by the California Civil Rights Department, began on September 21, 2026, before State Superior Court Judge Peter Borkon and is set to conclude on October 30, 2026. Because California law imposes no limit on the damages a court may award in workplace discrimination cases, the electric-vehicle manufacturer could face a multimillion-dollar judgment if it loses.
Attorneys representing Tesla and the California Civil Rights Department are set to appear in Oakland before State Superior Court Judge Peter Borkon, who has scheduled the trial to conclude on October 30, Reuters reported.
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In the 2022 lawsuit, the California Civil Rights Department alleges that Black workers at Tesla's Fremont, California plant endured widespread harassment from coworkers, including racial slurs and graffiti, and that Tesla did not take steps to prevent or halt it. Tesla is also alleged to pay Black employees less than others and to deny them opportunities for advancement.
The company has denied any wrongdoing and stated that it does not tolerate discrimination, having already dismissed employees found to have engaged in misconduct.
Kevin Kish, director of the California Civil Rights Department, stated in a remark that the agency anticipated holding Tesla responsible.
Tesla's prominent status and the large number of workers involved make this one of the most significant employment discrimination cases to reach trial in recent years against a major US company.
Borkon has set a bench trial, meaning that a judge, not a jury, will determine whether Tesla is responsible for violating California civil rights laws.
In contrast to federal law, California's anti-discrimination statute imposes no limit on the damages a court may award to affected employees, meaning Tesla could face millions of dollars in liability if it loses the case.
For the past 10 years, Tesla has been plagued by allegations that it cultivated an intensely unwelcoming environment for Black employees at the Fremont plant and other locations. The company is also under litigation from the US Equal Employment Opportunity Commission, which alleges racial harassment, as well as numerous individual lawsuits from workers raising comparable allegations.
The Civil Rights Department's lawsuit includes broader claims, alleging that the Fremont plant was racially segregated, with Black workers placed in the lowest-paying and least desirable positions.
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Last year, in a separate lawsuit, Borkon ruled that over 6,000 Black workers could not proceed with a class-action suit against Tesla, overturning a prior decision and delivering a significant win to the company.
Tesla has resolved several individual lawsuits, including one filed by a former elevator operator from the Fremont plant who initially received $137 million from a jury, a figure subsequently reduced by a judge.
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