Elon Musk's Tesla Hit with a Racist Work Environment Lawsuit

SpaceX  Tesla Inc. CEO Elon Musk

SpaceX Tesla Inc. CEO Elon Musk

"Race harassment has continued at the Tesla Factory, and became more widespread, because despite their knowledge of the harassment, Defendants have done nothing that could be reasonably expected to stop it".

Documents obtained from the Alameda County Clerk of the Superior Court paint a damning picture for Musk and his electric car company, claiming that Vaughn and others were routinely called the n-word by fellow employees.

31, Vaughn was fired for "not having a positive attitude".

The suit references an e-mail that CEO Elon Musk allegedly sent to Fremont factory workers addressing complaints of a toxic culture.

"Part of not being a huge jerk is considering how someone might feel who is part of a historically less represented group", Musk's email reads. "In fairness, if someone is a jerk to you, but sincerely apologizes, it is important to be thick-skinned and accept that apology".

Owen Diaz and his son, Demetric, left to right, talk about their lawsuit against Tesla at their attorney's office in Oakland, California, on Thursday, 21 September, 2017.

This is the third lawsuit levelled against Tesla this year for alleged racist incidents in California.

According to Vaughn employees and supervisors regularly used the "N word" around him and other black colleagues.

Lawyer Larry Organ told Bloomberg News that Vaughn reached out to him after the group sued Tesla on behalf of other employees.

Tesla has already battled lawsuits alleging the company discriminates against homosexual and elderly workers.

Vaughn's lawsuit seeks certification as a class-action, to bring in current and former African-American Tesla factory workers. Central to the criticism is the idea that victims of pervasive racial harassment cannot simply "be thick-skinned" and shake it off. In July, female workers labelled the work site in Fremont as a "predator zone". The UAW has already claimed that he is not on its payroll.

On top of lawsuits, Tesla is facing criticism over its failure to meet production targets for its entry-level sedan, the Model 3. By purchasing the calls to open, the buyers expect TSLA stock to rebound north of the strikes before Friday's close - when the contracts expire, and when speculators will have a chance to react to the Tesla Semi reveal. "It's somewhat akin to saying 'stop being politically correct.' When you have a diverse workforce, you need to take steps to make sure everyone feels welcome in that workforce".

Latest News