Tesla investor sues Musk, alleging workplace discrimination by board

The new lawsuit is the latest against Tesla, which has been accused of racial discrimination and sexual harassment at its factories. CEO Elon Musk and the Tesla board have been accused of neglecting to deal with complaints about workplace discrimination and harassment.


Tesla CEO Elon Musk and board have been accused of neglecting complaints about workplace discrimination
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Tesla CEO Elon Musk and board have been accused of neglecting complaints about workplace discrimination

A Tesla Inc. shareholder has sued the electric car maker, Chief Executive Elon Musk, and its board, accusing them of neglecting to deal with complaints about workplace discrimination and harassment, and creating a “toxic workplace culture.” Thursday’s lawsuit is the latest against Tesla, which has been accused of racial discrimination and sexual harassment at its factories. “Tesla has created a toxic workplace culture based on racist and sexist abuse and discrimination against its employees,” said investor Solomon Chow.

“This toxic work environment has been around for years internally, and it’s only recently that the truth about Tesla’s culture has come to light,” he said in the complaint. “Tesla’s toxic workplace culture has caused financial loss and irreparable damage to the company’s reputation.” Tesla did not immediately respond to an email seeking comment outside of regular US business hours.

Kendall Law Group PLLC, the attorney representing Chow, was not available outside of regular US business hours. Tesla has said it does not tolerate discrimination and has taken steps to deal with workers’ complaints.

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“Tesla has created a toxic workplace culture based on racist and sexist abuse and discrimination against its employees,” said investor Solomon Chow.

The lawsuit alleges the defendants – Musk, 11 Tesla board members and the company – breached their duty by failing to address and address red flags related to internal reports of discrimination and harassment.

The lawsuit says it caused Tesla to lose high-quality employees and face costs to defend the cases and impose fines for violations.

The case Chow et al v. Musk et al, US District Court, Western District of Texas (Austin), 1:22-cv-00592.

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