London Daily

Focus on the big picture.
Thursday, Mar 05, 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
Iceland Supermarket Drops Trademark Challenge Against Icelandic Government in Long-Running Naming Dispute
UK Defence Secretary Visits Cyprus Following Scrutiny of Britain’s Response to Drone Attacks
Questions Grow Over Britain’s Military Readiness as Response to Iran Conflict Draws Scrutiny
UK Offers Failed Asylum Seeker Families Up to Forty Thousand Pounds to Leave Voluntarily
Saharan Dust Could Bring ‘Blood Rain’ to Parts of the UK as Weather Systems Shift
UK Deploys Additional Typhoon Fighter Jets to Qatar and Helicopters to Cyprus Amid Rising Middle East Tensions
Experts Urge Britain to Accelerate Renewable Energy Push as Global Conflicts Drive Up Costs
British Public Shows Strong Reluctance to Join Wider War in Iran
First UK Evacuation Flight Departs Middle East After Lengthy Delay
United Kingdom Imposes New Visa Requirements on Travelers from St. Lucia and Nicaragua
Iran Conflict Strains U.S.–U.K. Alliance as Trump and Starmer Clash Over Military Strategy
UK Interest Rates Could Rise Above Four Percent Again if Energy Shock Continues, Think Tank Warns
Starmer Defends Britain’s Iran Strategy as Badenoch Urges Stronger Military Support
Labour MP Says She Saw No Sign Husband Broke Law After Arrest in China Espionage Investigation
UK Jobless Rate Overtakes Italy’s for First Time in Years as Labour Market Weakens
United Kingdom Suspends Student Visas for Four Countries in Unprecedented Immigration Move
Campaigners Warn UK Student Visa Ban Could Push Migrants Toward Dangerous Channel Crossings
First U.K. Charter Flight for Stranded Nationals Set to Depart Oman Amid Middle East Crisis
France and United Kingdom Deploy Warships to Eastern Mediterranean as Middle East Conflict Escalates
U.K. Arrests Three Men Including Lawmaker’s Partner in Suspected China Espionage Investigation
Trump Says UK–US ‘Special Relationship’ Is Diminished Amid Middle East Dispute
UK Economic Forecasts Face Fresh Strain from Middle East Conflict and Rising Energy Costs
UK Reaffirms Close US Ties After Trump’s Public Criticism
Reeves Stresses Stability and Fiscal Discipline in UK Budget Update as Growth Outlook Shifts
UK Deploys Royal Navy Destroyer HMS Dragon to Cyprus After Drone Strike on RAF Base
Green Party Surges Past Labour in New UK Poll as Traditional Party Support Crumbles
Majority of Britons Oppose U.S. Use of UK Military Bases in Iran Conflict
UK Intensifies Evacuation Efforts from Oman, Working with Airlines to Boost Flight Capacity
Trump Condemns UK and Spain in Unusually Sharp Rift Over Iran Military Action
Trump Repeats UK Claims That Diverge from Verified Facts Amid Diplomatic Strain
UK Arrests Prominent Figures Linked to Epstein Network as Questions Mount Over US Action
Trump Says UK ‘Took Far Too Long’ to Approve Use of Airbases for Iran Strikes
Scope of Britain’s Role in the Expanding Middle East Conflict Comes Under Scrutiny
Trump Says He Is ‘Very Disappointed’ in Starmer Over Iran Comments
U.S. Embassy in Riyadh Struck by Drones Amid Escalating Iran Conflict
Starmer Confronts Strategic Test After Drone Strike Near British Base in Cyprus
Rolls-Royce Chief Signals Openness to Germany Joining UK-Led Fighter Jet Programme
UK Stocks Slip as Escalating Iran Conflict Triggers Global Market Selloff
UK Overhauls Asylum System to Make Refugee Status Temporary
Starmer Warns of ‘Reckless’ Iranian Strikes Amid Escalating Regional Tensions
British Base in Cyprus Targeted as Drones Intercepted Amid Expanding Iran Conflict
Starmer Diverges from Trump on Iran Strategy, Rejects ‘Regime Change from the Skies’
U.S. and Israel Intensify Strikes on Iran as Conflict Expands to Lebanon and Gulf States
Violent Pro-Iranian Protesters Storm U.S. Consulate in Karachi
Missile Debris Sparks Fires at Dubai’s Jebel Ali Port Near Palm Jumeirah
Iran Strikes U.S. Fifth Fleet Headquarters in Bahrain Amid Wider Gulf Retaliation
When the State Replaces the Parent: How Gender Policy Is Redefining Custody and Coercion
Bill Clinton Denies Knowing Woman in Hot Tub Photo During Closed-Door Epstein Deposition
Former U.S. President Bill Clinton Testifies on Ties to Jeffrey Epstein Before Congressional Oversight Committee
Dyson Reaches Settlement in Landmark UK Forced Labour Case
×