Tesla Inc., led by Elon Musk, has successfully overturned a class action lawsuit alleging racial discrimination at its Fremont, California assembly plant. The lawsuit, which was filed in 2017 by African American workers, claimed that the company had subjected them to racial harassment in the form of targeted slurs, graffiti, and nooses hung at their workstations.
Ruling Limits Scope of Lawsuit
A California state judge ruled that over 6,000 workers at the assembly plant cannot sue as a class, as the experiences of a smaller group of workers cannot be applied to the entire class. This decision reverses a previous ruling that had certified the lawsuit as a class action against Tesla.
The judge’s decision was influenced by the fact that many of the 200 workers set to testify at the trial were unwilling to do so. According to the lawyer for the plaintiffs, Lawrence Organ, many of these workers were low-income and could not afford to miss work.
Tesla Faces Multiple Lawsuits
This news comes as Tesla is facing another proposed class action lawsuit accusing the company of favoring foreign visa holders over U.S. citizens in hiring and firing decisions. The plaintiffs allege that this practice allows the company to pay lower wages to its workforce.
Tesla has also lost a bid to dismiss a class action lawsuit over allegedly misleading owners about the capabilities of its Full Self-Driving (FSD) system. Additionally, the company is suing the North Dakota Department of Transportation over its refusal to allow Tesla to open showrooms in the state.
Current Stock Price
Tesla’s stock price jumped 0.30% to $410.13 during after-hours trading, following a 1.13% increase to $408.92 at the end of the regular trading session.
Company Performance
Tesla scores well on Momentum and Quality metrics, while offering satisfactory Growth, but poor Value. The company also has a favorable price trend in the Medium and Long term.
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