SAN FRANCISCO – Tesla Inc. has agreed to enter mediation with the U.S. Equal Employment Opportunity Commission (EEOC) in a lawsuit alleging widespread racial harassment at the automaker’s Fremont, California, assembly plant.

The EEOC sued Tesla in September 2023, claiming that Black employees faced severe harassment, including racial slurs, and racist graffiti, such as swastikas and nooses, some of which appeared on vehicles rolling off the assembly line.

“Tesla and the EEOC are working to choose a mediator, with negotiations expected to begin in March or April,” the agency said in a federal court filing on Tuesday.

The filing also noted that if mediation is unsuccessful, both sides must submit proposals to the judge by 17 June regarding the next steps. Certain evidence-gathering deadlines have been temporarily suspended to prioritize mediation.

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Tesla’s Response

Tesla has denied knowing about the harassment or ignoring it, calling the EEOC’s claims “headline-chasing.” The company has faced multiple lawsuits over alleged mistreatment at the Fremont plant.

In November 2025, Tesla won a legal victory when a California judge ruled that more than 6,000 Black workers could not sue as a class, as many potential witnesses were unwilling to testify.

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Key Points

• Mediation planned: Tesla and EEOC to select a mediator; talks could start March–April.
• Allegations: Harassment, racial slurs, and graffiti at Fremont plant.
• Legal context: Tesla previously blocked a class-action suit of 6,000+ Black employees.
• Next steps: If mediation fails, court proposals due by 17 June 2026.