California, Nov 17, 2025 – Tesla (TSLA.O) scored a legal victory after a California judge ruled that more than 6,000 Black workers at its Fremont assembly plant cannot pursue a class-action lawsuit over alleged racial harassment, reversing an earlier decision.

Judge Cites Inability to Generalize Worker Experiences

California Superior Court Judge Peter Borkon said the 2017 lawsuit cannot proceed as a class action because many of the 200 randomly selected workers slated to testify in a trial set for 2026 were unwilling to participate.

“I cannot trust that the experiences of a smaller sample of workers could be applied to the entire class,” Judge Borkon said.

A separate judge had certified the class in 2024, believing a large-scale trial could be managed, but Borkon disagreed based on the recent evidence.

Allegations of Harassment Remain

The lawsuit, Vaughn v. Tesla, alleges that Black workers at Tesla’s Fremont factory were subjected to racial slurs, graffiti, and nooses at workstations. Named plaintiff Marcus Vaughn, a former assembly-line worker, spearheaded the claims.

Tesla has maintained that it does not tolerate workplace harassment and has terminated employees found guilty of racial misconduct. The company did not comment on Monday’s ruling.

Lawyer Lawrence Organ, representing the plaintiffs, said:

“These courageous Black workers will overcome Tesla’s delays and continue fighting to hold the company accountable, either together or individually.”

Other Legal Challenges

Tesla also faces federal racial discrimination claims in California, brought by the U.S. Equal Employment Opportunity Commission, which enforces federal anti-discrimination laws. The company has settled other race discrimination cases involving individual plaintiffs.

The Fremont trial had been scheduled for April 2026, two months before another state civil rights case targeting Tesla.