Tesla Race Bias Trial Opens in California; Uncap Damages Signal Millions at Stake

Tesla (TSLA) heads to trial on Monday, Sept. 21, 2026, in Oakland, where the California Civil Rights Department alleges the company permitted pervasive race discrimination at its Fremont assembly plant. State Superior Court Judge Peter Borkon is hearing the case as a bench trial, with proceedings scheduled through Oct. 30. The 2022 lawsuit claims Black workers faced racial slurs, graffiti, unequal pay and denied promotions. Because California's anti-discrimination law caps no damages, Tesla could owe many millions if found liable. Tesla denies wrongdoing, saying it does not tolerate discrimination and has fired workers over misconduct. The company also faces a US Equal Employment Opportunity Commission suit and dozens of individual worker claims. A judge last year barred more than 6,000 Black workers from suing as a class in a separate case. Tesla has settled some individual suits.