Investor Sues Tesla, And CEO Elon Musk Over Allegations Of Toxic Workplace


Yet another case has been filed against Telsa, this time over its alleged fostering of a toxic workplace culture.

The suit, filed in Austin, Texas, by stockholder Solomon Chau, is directed at Tesla, 11 board members, and the company’s CEO, Elon Musk, reports Reuters. The plaintiff alleges that the automaker breached its fiduciary duty by engendering a workplace culture of discrimination and harassment, which cost the automaker dearly.

“This toxic work environment has gestated internally for years, and only recently has the truth about Tesla’s culture emerged, leading to legal action from government regulators and private parties alike,” Chau said in the complaint. “Tesla’s toxic workplace culture has caused financial harm and irreparable damage to the company’s reputation.”

Read Also: Another Former Tesla Employee Files A Lawsuit, This Time For “Festering” Racism And Homophobia

The suit is likely related to a recent suit by the California Department of Fair Employment and Housing over racial discrimination and harassment. In February, the agency said it found “evidence that Tesla’s Fremont Factory is a racially segregated workplace where Black workers are subjected to racial slurs and discrimination,” per Fortune.

Tesla called the lawsuit “misguided,” but the company has faced several allegations of workplace discrimination from employees. Several female employees have also come out, saying that sexual harassment is rampant at the company’s Fremont factory.

Musk “either knew, was reckless, or was grossly negligent in disregarding the illegal activity of such substantial magnitude and duration,” claimed Chau in his complaint. He further blamed the board for defeating a shareholder proposal aimed at addressing workplace issues at Tesla.

Together with incurring costs for defending cases and settling fines for violations, the plaintiff also claims that Tesla’s actions have caused it to lose high-quality employees.


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