Musk Hit With Tesla Investor Suit Over ‘Toxic’ Work Culture

  • Shareholder says company’s board breached its fiduciary duty
  • Automaker is fighting racial abuse, sex harassment complaints

Elon Musk

Photographer: Samuel Corum/Bloomberg
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A Tesla Inc. investor accused the electric-vehicle maker’s officers and directors in a lawsuit of allowing a “toxic workplace culture” to fester at the company.

Chief Executive Officer Elon Musk and others who run the world’s largest electric-vehicle maker breached their fiduciary duty by fostering an environment of discrimination and harassment, exposing Tesla to millions of dollars in potential liability, according to the complaint filed Thursday by stockholder Solomon Chau in federal court in Austin, Texas.