Tesla won a significant victory in the discrimination lawsuit.

Tesla has achieved a significant legal victory as a California court ruled that a long-standing racial discrimination lawsuit will not proceed as a class action. This decision withdraws the permission for over 6,000 African American workers at the Fremont factory to file a joint lawsuit.

Judge Peter Borkon stated that the case could not continue as a class action because many of the 200 workers randomly selected for testimony were unwilling or unable to participate before the hearing set for 2026. He emphasized that this situation meant the experiences of thousands of others could not be represented by these individuals.

Tesla did not comment on the court's decision; however, it had previously stated that there was zero tolerance for harassment and had fired employees who engaged in misconduct. Attorneys for the workers noted that many of those chosen for testimony were hourly employees and that leaving their jobs was not financially feasible for them. Nonetheless, they indicated that the workers would continue their claims, even if they would have to pursue their cases individually.

The original lawsuit was filed in 2017 by former employee Marcus Vaughn. The suit alleges that African American workers at the factory were subjected to ongoing racist slurs, graffiti, and even nooses left at workstations. The case was scheduled to go to trial in April, prior to a separate lawsuit filed by California's civil rights agency. Additionally, Tesla is also facing similar claims from the U.S. Equal Employment Opportunity Commission, and the company has resolved several individual lawsuits in recent years.