Tesla began a high-stakes bench trial on September 21, 2026, regarding systemic racial discrimination claims. California’s Civil Rights Department (CRD) filed the lawsuit in 2022 following a lengthy investigation into the Fremont factory. The CRD alleges Tesla fostered a segregated environment where Black workers faced racial slurs and graffiti. The state agency claims the company denied promotions and assigned Black employees to more physically demanding, lower-paying jobs. Tesla also faces accusations of retaliating against workers who complained about the environment. The company denies the allegations and states it has terminated employees for misconduct. This non-jury trial could result in a multi-million dollar judgment. California law does not cap potential damages in these civil rights cases.