Tesla Inc. and the U.S. Equal Employment Opportunity Commission have agreed to private mediation to resolve a 2023 lawsuit alleging racial harassment against Black workers at Tesla's Fremont, California, plant. The parties expect mediation to begin in March or April. If unsuccessful, they will propose next steps to the court by June 17, 2026.
The U.S. Equal Employment Opportunity Commission (EEOC) filed the lawsuit against Tesla in September 2023, accusing the electric vehicle manufacturer of tolerating a pattern of “severe or pervasive” racism at its Fremont assembly plant. The agency alleged that Black employees faced racial slurs, racist graffiti including swastikas and nooses—some appearing on vehicles rolling off the line—and retaliation, in violation of Title VII of the Civil Rights Act. EEOC claimed Tesla was aware of the behavior but “failed and refused to take steps to address” it.
In a Tuesday court filing in the U.S. District Court for the Northern District of California, the parties announced their agreement to private mediation. They are currently selecting a mediator, with sessions slated to start in March or April. U.S. District Judge Jacqueline Scott Corley granted a request to pause discovery deadlines, prioritizing settlement efforts. “Should this matter not resolve through settlement discussions and mediation efforts, the Parties will submit to the Court on or before June 17, 2026, a proposed protocol for the next phase of the litigation,” the filing stated. Tesla's counsel confirmed it does not oppose the motion.
Tesla has denied knowledge of the harassment and accused the EEOC of “headline-chasing.” Neither side responded to requests for comment. The Fremont plant has been at the center of multiple discrimination lawsuits. In March 2024, Tesla settled a case with a former elevator operator after two jury trials favored the employee, who alleged racist epithets and caricatures. In August 2025, former HR professionals claimed they were fired or forced to resign for raising race discrimination complaints. On November 17, a California state judge ruled that over 6,000 Black workers could not proceed with a class-action suit due to unwilling witnesses.
