Tesla is embroiled in a racial discrimination lawsuit that it filed against the state of California. The company has requested access to the investigation that was conducted by the CRD prior to filing the lawsuit, but a judge ruled that they must provide details of their investigation. This may prove helpful to Tesla as it tries to defend itself against allegations of racism.
Since the CRD filed suit, Tesla has made many changes to their company culture. They have created a new HR department, hired diversity managers and raised awareness of workplace issues among employees. Additionally, they have hosted numerous employee workshops on topics such as harassment and unconscious bias. These changes have dramatically improved the working environment for Black workers at Tesla.
Tesla’s recent lawsuit against the California Regulatory Division (CRD) highlights how difficult it can be for the automaker to win back public trust following a string of quality control problems. In 2018, Tesla was fined by both the European and US safety regulators after discovering 2017 Model S sedans had faulty air suspension that could cause them to rollover. The CRD’s investigation into claims of excessive work hours, forced overtime, and poor working conditions at Tesla’s Fremont factory found several violations of state law but ultimately failed to result in any punishable actions by Tesla. The company has since tried unsuccessfully to have the lawsuit dismissed arguing that CRD didn’t follow proper protocol in its investigations.
In order to provide Tesla with the details it has sought, Judge Grillo’s tentative ruling could give the automaker a chance to narrow the scope of its lawsuit against NHTSA. This would allow Tesla to continue its investigations into crashes and fatalities that have occurred while drivers were using its vehicles, without concern for potential liability from NHTSA.
Tesla could try and have the case against it dismissed if it can show that the CRD did not investigate potential discrimination claims before filing suit. If this is successful, Tesla may be able to avoid additional damages or even an adverse verdict in court.
In the September lawsuit, Tesla alleges that the agency didn’t first notify the automaker of claims of racial discrimination at its factory or give the company a chance to settle outside of court. A potential issue if evidence in the CRD investigations comes to light is that it may disprove some of Tesla’s allegations against the CRD and hinder future legal proceedings.
Given that the CRD has already stated publicly that it disagrees with Grillo’s decision, it is unlikely that he will make a change to it. This means that on Tuesday the CRD will have to go through with its hearing and challenge Grillo’s decision. If they are unsuccessful, this could mean significant implications for their future elections.
Tesla is known for their electric cars, but the company has recently started to branch out into other types of vehicles. One of these new ventures is the Tesla Roadster, a sports car designed to be fast and comfortable. The CRD is
At Tesla’s factories, Black workers have faced discrimination and sexual harassment. Diaz has decided to take his case to a new trial, hoping to win back the $137 million jury verdict that was slashed by a judge. If he can prove that Tesla acted unlawfully and discriminated against him, perhaps he can finally receive the compensation he deserves.
