Tesla Inc Sued Again For Being A “Hotbed for Racist Behavior”

A Tesla Inc (NASDAQ:TSLA) employee sued the company over racial harassment stating that over 100 employees are experiencing the same at the workplace, according to Bloomberg. Marcus Vaughn, the Tesla employee in question, stated that the production floor is a “hotbed for racist behavior.”

Tesla employee
Blomst / Pixabay

Tesla’s environment is “pre-Civil rights era”

Vaughn stated that although the company is considered an innovative company and the pioneer of the electric car revolution, its standard operating procedure “is pre-Civil rights era race discrimination.”

In his lawsuit, Vaugh mentioned that employees and supervisors used the “N-Word” on a regular basis around Vaugh, and drew racist graffiti on cardboard boxes. After Vaughn complained to human resources, he was terminated for “not having a positive attitude.”

Vaughn’s lawsuit is seeking class-action status and unspecified damages under California’s anti-discrimination law. Vaughn worked in the Fremont factory from April 23 to Oct. 31.

Not the first lawsuit by a Tesla employee

The Palo Alto-based company employs around 33,000 employees, but has so far shied away from releasing the diversity statistics. Over 10,000 employees work at its auto-assembly plant in Fremont, California. At the same facility, United Auto Workers (UAW) launched a campaign encouraging workers to join the union. During the latest earnings call, Tesla CEO Elon Musk informed that the company fired over 700 workers for low performance.

This is not the first lawsuit against the company. In March, another black employee filed a lawsuit stating that he was sexually harassed, racially discriminated and harassed at the Fremont facility. The lawsuit followed another one in October, when three employees made similar claims against the company.

According to The Mercury News, a Tesla spokesperson, however, stated that, “given our size, we recognize that unfortunately at times there will be cases of harassment or discrimination in corners of the company.”

Apart from the lawsuits, Tesla is also facing heat from the UAW. Jose Moran, apparently a former employee at the Fremont factory, wrote a biting piece about the facility and Tesla, stating that the company believes in “excessive mandatory overtime” and low wages. Moran stated that other employees were also considering unionizing and had reached out to UAW for help.

Prepping to launch semi truck

Overloaded with such allegations and lawsuits, Tesla is prepping to launch its semi truck on Thursday of this week. According to the early reports, Tesla’s semi truck would clock between 200 and 300 miles, and it is intended for day trips.

About their preparation, the EV maker previously stated that they are working closely with the experts in the designing process. The company also stated that the team is working on inputs from the biggest customers of the heavy-duty Tesla semi truck. During the conference call in June, Musk stated that big customers are already aware of the specifications of the truck, so it would be all about reaching volume as soon as the company can.

On Monday, Tesla shares closed up 4.10% at $315.40. Year to date, the stock is up almost 48%, while in the last three months, it is down almost 12%.