Final hours! Save up to 55% OFF InvestingProCLAIM SALE

Tesla ordered to pay over $130 million to Black former worker over racism -WSJ

Published 10/04/2021, 10:23 PM
Updated 10/05/2021, 03:26 AM
© Reuters. FILE PHOTO: The TESLA logo is seen outside a dealership in the Brooklyn borough of New York City, U.S., April 26, 2021. REUTERS/Shannon Stapleton
TSLA
-

(Reuters) -A federal jury on Monday has ordered Tesla (NASDAQ:TSLA) Inc to pay more than $130 million in damages to a Black former worker, finding he was subjected to a racially hostile work environment, the Wall Street Journal reported.

The jury determined that the company failed to take reasonable steps to prevent Owen Diaz, a contract worker who was employed as an elevator operator at Tesla's Fremont factory in 2015 and 2016, from being racially harassed, the newspaper said.

In a message to employees that Tesla posted on its website, the automaker noted the trial concerned racial slurs heard on the factory floor and racist graffiti in the bathrooms.

It also said the three times that Diaz complained about harassment, Tesla stepped in and made sure action was taken by staffing agencies.

The jury awarded Diaz $6.9 million in compensatory damages and $130 million in punitive damages, according to the newspaper.

"While we strongly believe that these facts don't justify the verdict reached by the jury in San Francisco, we do recognize that in 2015 and 2016 we were not perfect," Tesla said.

Tesla did not immediately respond to a Reuters query asking if it would be appealing the verdict. Diaz's lawyers did not immediately respond to a request for comment.

Before the trial began, presiding judge William Orrick rejected efforts by Tesla to exclude one juror from the jury, saying he believed the attempt was based on race and "purposefully discriminatory."

© Reuters. FILE PHOTO: The TESLA logo is seen outside a dealership in the Brooklyn borough of New York City, U.S., April 26, 2021. REUTERS/Shannon Stapleton

Tesla said in its blog post that since Diaz worked at the Fremont factory it had made changes including the establishment of teams dedicated to investigating employee complaints and to ensuring employees had equal opportunities at the company.

Last year, the electric carmaker disclosed in its first U.S. diversity report that Black employees make up just 4% of Tesla's American leadership roles and 10% of its total workforce in the country.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.