Tesla (TSLA) has agreed to settle a racial harassment lawsuit filed by Raina Pierce, a Black woman who worked at its Fremont, California factory. Pierce claimed she was repeatedly exposed to a toxic work culture. According to her, a manager often greeted workers with phrases like “welcome to the plantation” or “slave house.” She also reported seeing racial slurs on the walls, being called gender-based names, and facing unfair discipline compared to non-Black employees.
The financial details of the settlement remain undisclosed.
Lawsuits Keep Stacking Up
This isn’t the first time Tesla has faced such claims. In 2024, Tesla settled a lawsuit with Owen Diaz, a Black employee who accused the company of racial harassment at its Fremont factory. Diaz was initially awarded $137 million in 2021, but the verdict was overturned after he rejected a lower offer. A second jury awarded him $3.2 million, and the case was settled in March 2024 for undisclosed terms.
The Equal Employment Opportunity Commission (EEOC) has also sued Tesla, saying Black workers were subjected to racist language, threats, and offensive words.
Tesla Stock Slides as Investor Pressure Grows
Tesla’s legal troubles are adding to investor concerns. The stock has already dropped nearly 40% year-to-date and was down slightly in yesterday’s trading.
With ongoing claims of racism and a toxic workplace, Tesla is under growing pressure to fix its factory culture and regain trust, from workers and investors alike.
Is Tesla Stock a Good Buy Now?
Overall, TSLA stock has a Hold consensus rating on TipRanks, based on 16 Buys, 11 Holds, and 12 Sell ratings. Also, the average Tesla price target of $298.38 implies 23.62% upside potential from current levels.
