Tesla settles racial discrimination lawsuit with Fremont plant worker: Report

Tesla Inc. has reached a settlement in a racial discrimination case brought by a Black female employee who worked at the company’s Fremont, California facility. The plaintiff, Raina Pierce, alleged that a manager occasionally greeted workers with phrases such as “welcome to the plantation” and “welcome to the slave house.”

Pierce, who was responsible for installing latches on car doors, and Tesla agreed to settle following mediation, according to a joint filing made in the U.S. District Court for the Northern District of California. The filing indicates that the terms of the settlement remain confidential and that the parties are finalizing the agreement.

Pierce’s complaint stated that she experienced ongoing harassment, including exposure to racial slurs allegedly written in various parts of the plant, such as in bathrooms. She also cited a gender-based insult and claimed she faced disciplinary actions for behavior that went unpunished among non-Black colleagues.

The lawsuit referenced a statement from a Tesla worker who temporarily worked on her production line and advised her to contact human resources due to inappropriate comments made by team leads.

Tesla has previously faced other discrimination allegations related to the Fremont plant. In a separate case, elevator operator Owen Diaz settled with Tesla in March 2024 after initially receiving a $3.2 million jury award. Diaz had previously been awarded $137 million in 2021 before the case was retried.

Tesla CEO Elon Musk is not named as a defendant in Pierce’s case.