The Tesla racism trial is being decided by one person. Reuters called it among the most significant employment discrimination cases against a major U.S. company to reach trial in recent years. The state’s Civil Rights Department (CRD) is trying its case against Tesla in Alameda County Superior Court before Judge Peter Borkon, with no jury, according to Bloomberg Law. Reuters reported the trial began Sept. 21, 2026 and is scheduled to run until Oct. 30.

The case concerns Black workers at Tesla’s Fremont, California, factory, a group Electrek reports numbers more than 6,000. Nothing has been proven yet. Here is what the state claims, what Tesla says, what a ruling could change, and what you can do if something similar happens where you work.

What California alleges in the Tesla racism trial

The state’s claims, as reported by major outlets and the CRD itself, include:

• Slurs and graffiti. Racial slurs from coworkers and racist graffiti, including swastikas and Confederate flags, according to theGrio.
• A pay gap. The CRD says its own analysis covering June 2018 to June 2024 showed Black workers’ monthly pay was $1,533 lower than white workers’, according to a May 2026 release.
• Job segregation. Black workers were allegedly assigned to the lowest-paying jobs and denied promotions, per Reuters.
• Retaliation. Workers who complained allegedly faced harsh reviews, reprimands and firing, the CRD says.

In opening statements, CRD attorney Brett Watson described the plant as “stuck in the past,” Bloomberg Law reported. CRD Director Kevin Kish has said Tesla’s employment practices are “rooted in some of the ugliest relics of the past.” Former regional security manager Ozell Murray testified that a supervisor told him to warn a Black Marine veteran he was hiring that “he’ll be called those words,” according to Electrek.

What Tesla says

Tesla denies wrongdoing. The company has said it does not tolerate discrimination and “has fired workers found to have engaged in misconduct,” according to Reuters. When the suit was filed in 2022, Tesla said in a blog post that it “strongly opposes all forms of discrimination and harassment” and that “the allegations focus on events from years ago.”

At trial, Tesla attorney Tyree Jones argued the state lacks evidence that harassment was “standard operating procedure” at the plant, and that a limited set of older stories does not prove a pattern, Bloomberg Law reported.

Jones also argued that context matters when it comes to the N-word. Electrek reported he pointed to rap lyrics to argue the slur is a term of endearment in the Black community, while saying “the N-word is not on trial here.” According to theGrio, Jones, who is Black, said the state was attacking “the way that many Black people greet each other.”

That argument set off a wave of reaction online. TheGrio reported boycott calls on social media, with one comment questioning why people keep buying the cars drawing more than 4,000 likes. Another widely liked comment said the writer had never been greeted with the slur, especially in a professional setting.

How we got here: a short timeline

• 2021 to 2024: Former Fremont elevator operator Owen Diaz won a $137 million federal jury verdict over racial harassment. A judge cut it to $15 million; Diaz chose a new trial, and a second jury awarded $3.2 million in April 2023, CBS San Francisco reported. The two sides settled confidentially in 2024, per CNBC.
• February 2022: California’s civil rights agency, then called the DFEH, sues Tesla. Tesla calls the suit misguided.
• September 2023: The U.S. Equal Employment Opportunity Commission files its own federal suit alleging racial harassment and retaliation at Fremont, according to an EEOC release. Reuters reported Tesla still faces that suit.
• November 2025: In a separate private case, Vaughn v. Tesla, Judge Borkon ruled the workers could not proceed as a class, KQED reported, pushing hundreds of workers toward individual lawsuits.
• May 2026: The court denies Tesla’s bid to end the CRD case before trial, the agency announced.
• Sept. 21, 2026: The bench trial opens in Oakland.

What a ruling could change

Because this is a bench trial, Judge Borkon will decide whether Tesla broke California law. It is not yet clear when he will rule. Here is what is on the table:

• Money. Electrek reports damages in the case are uncapped. TheGrio reports the state is seeking damages and workplace reforms.
• Workplace changes. The state is asking for workplace reforms. What, if anything, Tesla would be required to change would be up to the court.
• A signal to other employers. A state agency suing on behalf of a whole workforce is a big deal. The outcome is likely to be watched by companies and by the workers still pursuing individual claims.
• Or not. If Tesla wins, the state’s claims fail. Either side could appeal, so the final word may be years away.

Whatever you decide about where you spend your money, it can help to know which businesses align with your values. Our roundup of Black business wins and how to support them is a good place to start.

If it happens at your job: your rights and deadlines

Most people never end up in a courtroom. But cases like these are built on records and complaints on file. Save this box.

In California, anti-discrimination rules apply to employers with five or more workers, but harassment is banned in every workplace, no matter how small, according to the CRD. You can also skip the CRD investigation and ask for a right-to-sue notice so you can go to court yourself.

Deadlines can be tricky and every situation is different, so talk with an employment lawyer or legal aid group about your specific case. Some offer a free first consultation.

The trial is scheduled to continue through October. BCN will keep following the testimony and what it means for Black workers.