Tesla has reached a settlement in a racial discrimination lawsuit filed by Raina Pierce, a Black female employee who accused a manager at the company’s Fremont, California, plant of making offensive remarks, including referring to the workplace as “the plantation” or “the slave house.” Pierce, who worked on installing car door latches, and the company led by Elon Musk agreed to a settlement through mediation, according to a joint court filing in San Francisco federal court. The details of the settlement have not been made public, and both parties are still finalizing the agreement.
Pierce’s lawsuit alleged she was subjected to persistent harassment, including the use of racial slurs written throughout the plant, especially in bathrooms, and being targeted with gender-based insults. She also claimed she was unfairly disciplined for actions that white employees were not reprimanded for. One Tesla employee reportedly advised her to report the discriminatory behavior to HR, noting that the harassment she faced was inappropriate.
Tesla has faced multiple allegations of racial discrimination and harassment at the Fremont plant. In March 2024, another employee, elevator operator Owen Diaz, reached a settlement following a $3.2 million jury verdict. Diaz had previously been awarded $137 million in 2021, though that verdict was retried after he rejected a lower settlement offer proposed by the judge.