What happened: Diaz jury verdict
Owen Diaz, a Black former contractor/employee at Tesla’s Fremont plant, sued over racial slurs and graffiti. A jury found Tesla liable. A 2021 damages award of $137 million was deemed excessive; after Diaz declined $15 million, an April 2023 retrial set damages at about $3.2 million. In March 2024, AP reported that Diaz and Tesla reached a confidential “final, binding settlement” that ended appeals of that verdict. The amount paid was not disclosed. This file does not treat $3.2 million as a confirmed payout.
What happened: California’s plant-wide lawsuit
On February 9, 2022, California’s civil-rights agency sued Tesla, alleging Black workers faced pervasive slurs and graffiti and discrimination in assignments and pay. Tesla has denied the claims. On May 27, 2026, the agency said Alameda County Superior Court had rejected Tesla’s latest bid to throw the case out and that trial was then set for July 20, 2026. Those remain allegations unless a trier of fact rules.
What happened: EEOC Fremont lawsuit
Separately, the EEOC sued Tesla in 2023 alleging that Black employees at Fremont have faced ongoing racial harassment and retaliation. That complaint is not a finding of liability in this file.
The Cookout read
Concern. The Diaz case is a court record of racial harassment of a Black worker at a flagship plant. Two government lawsuits say the problem was not one plaintiff.