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Tesla Ordered to Pay $137 Million Over Racism in Rare Verdict

  • Jury rules in favor of Owen Diaz, a Black contract worker
  • Investors weigh diversity, arbitration resolutions this week
A Tesla Charging Station Ahead Of Earnings Figures
Photographer: Nina Riggio/Bloomberg
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Tesla Inc. lost a case against a Black former elevator operator and must pay an unprecedented $137 million in damages for having turned a blind eye to racial taunts and offensive graffiti the man endured at the electric carmaker’s auto plant in Fremont, California.

Owen Diaz, a former contract worker who was hired in 2015 via a staffing agency, was subjected to a racially hostile work environment, a federal jury in San Francisco decided Monday. The award is among the most significant verdicts of its kind.