London Daily

Focus on the big picture.
Friday, Jul 03, 2026

Tesla ordered to pay €118 million to ex-employee over racism claims

Tesla ordered to pay €118 million to ex-employee over racism claims

A former Tesla freight elevator operator suffered racists slurs at work. He's now won a case against the company of the world's third-richest man.

A jury has ordered electric car company Tesla to pay nearly $137 million (€118 million) in damages to a Black former employee after it was found to have turned a blind eye to the racism the man suffered while working at its California factory.

Hired through a recruitment agency, Owen Diaz worked as a freight elevator operator between June 2015 and July 2016 at the electric vehicle manufacturer's Fremont plant in the San Francisco Bay area.

There, he suffered racist slurs, including the "n-word" and a hostile work environment, according to court documents.

"Tesla's progressive image was a facade hiding the retrograde and demeaning treatment of its African-American employees," according to the complaint.

Diaz alleged that employees drew swastikas and left racist graffiti and drawings around the plant. Despite complaints to bosses, the plaintiff claimed that Tesla did not react to put an end to this abuse.

The San Francisco federal court jury awarded Diaz $130 million (€112.2 million) in punitive damages and $6.9 million (€5.9 million) in damages for emotional distress on Monday.

"It took four long years to get to this point," Diaz told the New York Times newspaper. "It’s like a big weight has been pulled off my shoulders".

"It’s a great thing when one of the richest corporations in America has to have a reckoning of the abhorrent conditions at its factory for Black people," Lawrence Organ, of the California Civil Rights Law Group, told the New York Times.

'Not the Tesla of today'


Tesla’s vice president of human resources, Valerie Capers Workman, admitted that the mood was "not perfect" at the Fremont plant, where other employees testified to having "regularly heard racist insults", including the "n-word".

According to her, these employees said that "most of the time they thought that this language was used in a 'friendly' way and in general by African-American colleagues".

It wasn’t immediately clear on Monday evening whether Tesla would appeal the decision.

In an open note to employees, Capers Workman emphasised that the Tesla of 2015 and 2016 (when Diaz worked in the Fremont factory) "is not the same as the Tesla of today".

Since then, an Employee Relations team has been created to investigate employee complaints, as well as a Diversity, Equity, and Inclusion team "dedicated to ensuring that employees have the equal opportunity to excel at Tesla".

Newsletter

Related Articles

0:00
0:00
Close
Luxury bags take over the World Cup: style, status symbol, or just showing off?
National Productivity Institute Highlights Weak Business Investment Outside Southern England
UK High Court Orders Reassessment of Environmental Impact in Major Highway Project
UK Cyber Security Centre Warns of Rising Threat From State-Sponsored Digital Espionage
UK Education Secretary Launches National Reform of Apprenticeships and Vocational Training
Financial Conduct Authority Tightens Climate Risk Disclosure Requirements for Listed Firms
Rail Union Suspends Planned Strike Action to Enter Formal Negotiations With Operators
Northern Ireland Businesses Seek Clarity Over Post-Brexit Trade Rules
Welsh Government Launches Regional Growth Plan Targeting Transport and Digital Infrastructure
North Sea Wind Sector Attracts £5 Billion Investment Amid Expansion of Offshore Capacity
Scotland and UK Governments Establish New Framework for Coordinated Investment in Energy and Infrastructure
UK Government Launches Major Immigration and Border Policy Overhaul Review
Bank of England Signals Interest Rates to Remain Elevated Despite Easing Inflation Pressures
National Health Service Warns of Severe Winter Capacity Strain Across Hospital Trusts
Chancellor Orders Urgent Treasury Review Amid Concerns Over Structural Public Finance Gap
Prime Minister Unveils Sweeping Legislative Programme Focused on Housing, Health Service Reform and State Energy Plan
UK Parliamentary Committee Launches Inquiry Into Falling Primary School Rolls and Public Service Impact
UK House of Lords Debates Electoral Commission Powers and Political Finance Reform
UK Parliament Considers Expanding Carbon Rules to International Aviation and Shipping Emissions
UK Traffic Commissioner Revokes Hampshire Haulage Operator Licence Over Regulatory Failures
UK Parliament Examines Risks in Public Contracts Awarded to Technology Firm Palantir
UK Competition Watchdog Moves Toward More Flexible Merger Rules to Support Efficiency and Growth
UK Government Seeks Approval for £1.15 Trillion Public Spending Plan Amid Scrutiny Over Department Budgets
UK Parliament Debates Sweeping National Security and Steel Industry Nationalisation Bills
UK Government Issues Formal Apology for Historic Forced Adoption Practices and Announces £4 Million Support Scheme
UK DEFENCE AND TECHNOLOGY STRATEGY TILTS TOWARD SOVEREIGN CAPABILITY AND INDUSTRIAL INVESTMENT
UK ECONOMIC POLICY OUTLOOK SHAPED BY LEADERSHIP TRANSITION AND FISCAL SIGNALS
STERLING STRENGTHENS AMID SHIFTING MONETARY OUTLOOK AND GLOBAL LABOUR MARKET SIGNALS
UK HPV VACCINATION PROGRAM NEARLY ELIMINATES CERVICAL CANCER DEATH RISK IN YOUNG WOMEN
UK EXPANDS PRISON SAFETY REVIEW AS GOVERNMENT SEEKS WIDER SYSTEM REFORM
UK DRIVES DIGITAL ASSETS STRATEGY WITH NEW STABLECOIN REGULATORY MODEL
UK TO EXPAND AI INFRASTRUCTURE THROUGH NEW EUROPEAN TECHNOLOGY PARTNERSHIP
UK LAUNCHES £15 BILLION DEFENCE TECH SHIFT TOWARD ADVANCED MILITARY SYSTEMS
CIVIL SERVICE FACES SHIFT IN POWER STRUCTURE AS REGIONAL GOVERNANCE PLANS EXPAND
WHITEHALL CONSIDERS MAJOR DECENTRALISATION PLAN WITH SECOND GOVERNMENT HUB IN MANCHESTER
UK TARGETS SERVICES EXPORT GROWTH IN TRADE TALKS WITH CHINA AMID GEOPOLITICAL TENSIONS
POLICE WATCHDOG PROBES OFFICERS OVER HANDCUFFING OF DYING TEENAGER IN HAMPSHIRE CASE
UK REGULATORS UNVEIL DUAL OVERSIGHT FRAMEWORK FOR STABLECOINS AND DIGITAL ASSETS
KEIR STARMER ANNOUNCES £15 BILLION DEFENCE TECHNOLOGY BOOST IN FINAL MAJOR POLICY MOVE
ANDY BURNHAM SIGNALS STRICT FISCAL RULES AS LABOUR LEADERSHIP RACE SHAPES MARKET OUTLOOK
POUND STERLING HITS ONE-YEAR HIGH AS BANK OF ENGLAND SIGNALS NO IMMINENT RATE CUTS
UK Government Confirms Rejected Asylum Seekers to Remain Amid Enforcement Challenges
UK-China Economic Talks Focus on Services Trade and High-Value Sectors
Buckingham Palace Revamp Plans Unveiled to Modernise Royal and Public Facilities
Two Dead After Light Aircraft Crash in Essex Field, Investigation Underway
Princess Diana Marked at 65 With UK Tributes Reflecting on Her Public Legacy
England Teachers Face New Pay Cap Rules for Academy School Leaders Under Education Reform
Dublin Security Alert Escalates After Stabbing and Reports of Transport Disruption
UK Government Faces Scrutiny Over £10,000 Asylum Living Cost Contribution Requirement
England Prepares World Cup Knockout Match Against Democratic Republic of Congo
×