Tesla has agreed to enter mediation with the US Equal Employment Opportunity Commission (EEOC) in a federal lawsuit that accuses the company of allowing racism at its Fremont, California, factory.
The move could help resolve claims that Black workers faced severe and widespread harassment at the plant.
In a court filing made Tuesday in San Francisco, the EEOC said it is working with Tesla to choose a mediator.
According to StraitTimes, if both sides agree, talks could begin as early as March or April. The agency also asked the judge to pause some evidence deadlines so mediation can take priority.
If talks do not lead to a settlement, the EEOC said both sides will submit plans by June 17 to the judge explaining what should happen next. Tesla and the EEOC did not comment after business hours.
The lawsuit was filed in September 2023, during the Biden administration. The EEOC says Tesla’s work practices broke federal law by failing to protect Black employees from harassment at the Fremont assembly plant.
Tesla will enter into settlement negotiations with the US Equal Employment Opportunity Commission over the agency’s 2023 lawsuit accusing the electric-vehicle maker of race-based harassment at its California factory https://t.co/TCYaNjUyMg
— Bloomberg (@business) January 14, 2026
Tesla Denies Claims of Racial Harassment
According to the agency, workers were exposed to racial slurs and racist graffiti, including swastikas and nooses. Some of the graffiti was even seen on cars moving down the assembly line.
Tesla has pushed back on the claims. The Austin, Texas-based automaker has denied knowing about the harassment and failing to act, Reuters reported.
It has accused the EEOC of “headline-chasing,” signaling it believes the agency is overstating the case.
The Fremont factory has been the center of several lawsuits over how workers were treated. While the EEOC case is still active, Tesla scored a legal win last November.
A California state judge ruled that more than 6,000 Black workers could not sue Tesla together in a single class-action case.
The judge said many workers selected to testify were not willing to do so, which weakened the group claim.
Originally published on vcpost.com
