Elon Musk Sued by Tesla Shareholder Over Racism, Sexual Harassment Complaints

The action was the latest against Tesla, which has been hit by a spate of sexual harassment lawsuits.

Advertisement
By Gadgets 360 Staff With Inputs From AFP | Updated: 17 June 2022 18:28 IST
Highlights
  • Tesla has not responded to the media regarding slew of recent allegations
  • It previously ordered to pay its former elevator operator $15 million
  • Elon Musk was also sued by an investor in Dogecoin on Thursday

The lawsuit claims that Musk, Tesla's 11 board members ignored several red flags

Photo Credit: Reuters

A Tesla shareholder has filed legal proceedings against Elon Musk and the company's board of directors, accusing them of ignoring employee complaints of racism and sexual harassment.

The lawsuit — brought forward Thursday by complainant Solomon Chau in Texas where Tesla is headquartered — argues that an unaddressed "toxic workplace culture" at the company has caused "irreparable" reputational damage and financial harm.

Advertisement

The action was the latest against Tesla, which has been hit by a spate of sexual harassment lawsuits and Black employees complaining of rampant racism.

In February, the state of California sued Tesla over alleged discrimination and harassment against Black employees at its Fremont plant near San Francisco, saying in a complaint that the company had created a "racially segregated workplace."

Advertisement

Thursday's court filing stated that a "toxic environment took shape internally for years and the truth about Tesla's culture has only recently emerged, leading to actions by both regulators and private individuals."

The lawsuit asserts that Musk, who is Tesla's executive director, and its 11 board members ignored several "red flags", which resulted in the departure of numerous highly qualified employees and set off a series of costly legal proceedings.

Advertisement

"These wrongs resulted in significant damages to Tesla's reputation, goodwill, and standing in the business community", the lawsuit states, and "exposed Tesla to hundreds of millions of dollars in potential liability for violations of state and federal law."

In another lawsuit last year, Tesla was ordered to pay $137 million (roughly Rs. 1,070 crore), plus interest, to a former elevator operator at its Fremont factory for turning a blind eye to racism. Earlier this year, the penalty was reduced to $15 million.

Advertisement

Other legal proceedings, in particular from Black women employees who claim to have been victims of racial slurs and inappropriate sexual remarks by colleagues or superiors, are underway.

Tesla, which has barely responded to requests from journalists since late 2020, did not respond to a request from AFP.

Musk was also sued on Thursday by an investor in dogecoin, who says he lost money after investing in the cryptocurrency, and described himself as an "American citizen who was defrauded" by what he called a "Dogecoin Crypto Pyramid Scheme."


Is PS Plus better than Xbox Game Pass now? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Tesla, Elon Musk
Advertisement

Related Stories

Popular Mobile Brands
  1. Best boAt Earbuds to Buy Under ₹3,000 This Great Indian Festival
  2. Amazon Great Indian Festival 2026: Best Deals on OnePlus Smartphones
  3. Amazon Alexa Tablet 8, Alexa Tablet 11, Alexa Tablet 12 Pro Launched With Google Play Stor
  4. Amazon Great Indian Festival 2026: Best Soundbar Deals Under Rs. 20,000
  5. Amazon Great Indian Festival 2026 Sale Live Updates
  6. Amazon Great Indian Festival 2026: Best Phone Deals Under Rs. 60,000
  7. Amazon Great Indian Festival 2026: Best Laptops Under Rs. 1 Lakh
  1. Amazon Great Indian Festival 2026: Best Phone Deals Under Rs. 60,000
  2. Amazon Great Indian Festival 2026: Best Soundbar Deals Under Rs. 20,000 From JBL, Sony, Boat and More
  3. Bitcoin Recovers From September Low as Trump’s Iran Remarks Ease Market Fears
  4. Vivo Y600s Pro Launched With 10,200mAh Battery, MediaTek Dimensity 7300e SoC: Price, Features
  5. iQOO Neo 12 Launch Timeline and Features Tipped as Phone Appears on Geekbench; Could Arrive Globally as iQOO 16R
  6. iPad Mini 8 Tipped to Feature a 60Hz OLED Display Instead of a 120Hz ProMotion Panel
  7. Rockstar Reveals 6 Radio Stations From GTA 6, Confirms Players Can Listen to Music on Foot in the Game
  8. Samsung May Revive Its Over-Ear Headphones Line With Galaxy Studio, Leak Suggests
  9. Amazon Alexa Tablet 8, Alexa Tablet 11, Alexa Tablet 12 Pro Launched With Google Play Store Integration: Price, Specifications
  10. Amazon Great Indian Festival 2026: Best Phone Deals Under Rs. 40,000 From Samsung, Redmi, OnePlus and More
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.