Tesla Inc. has agreed to enter mediation with the U.S. Equal Employment Opportunity Commission (EEOC). This action aims to resolve a federal lawsuit alleging the company tolerated widespread and severe harassment of Black employees at its Fremont, California factory.
The EEOC filed the lawsuit in September 2023. The complaint alleges that Black workers were subjected to racial slurs and other forms of discrimination.
According to a recent court filing, both parties are currently selecting a mediator. Negotiations are anticipated to begin in March or April 2026.
By agreeing to mediation, Tesla seeks to resolve the high-profile case outside of a public trial. This move could help mitigate further reputational damage, and the outcome and any potential settlement will be closely watched.