A Tesla Inc shareholder sued the company, its CEO Elon Musk, and its board of directors, accusing them of failing to address workplace discrimination and harassment concerns and creating a “toxic working atmosphere.”
The complaint filed on Thursday is the latest to accuse Tesla of racial discrimination and sexual harassment at its manufacturing.
“Tesla has built a poisonous workplace culture based on racial and sexist harassment and discrimination against its own employees,” Solomon Chau, the investor, claimed.
“This poisonous work atmosphere has been brewing for years, and the truth about Tesla’s culture has just lately surfaced,” he continued in the lawsuit.
“Tesla’s terrible workplace culture has cost the firm money and damaged its brand irreparably.”
Outside of typical U.S. business hours, Tesla did not respond to an email requesting comment.
Outside of typical U.S. business hours, the lawyers representing Chau, Kendall Law Group PLLC, were unavailable.
According to the complaint, the defendants — Musk, 11 Tesla board members, and the corporation — broke their fiduciary duties by failing to address and correct internal accusations of discrimination and harassment.
According to the complaint, this prompted Tesla to lose high-quality personnel and spend fees for defending charges and settling penalties for infractions.
