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Tesla Wins Bid To Undo Class Action Lawsuit Filed By Over 6,000 African American Workers Alleging Racial Bias At Fremont Facility

Author: Badar Shaikh | November 18, 2025 02:05am

Elon Musk-led Tesla Inc. (NASDAQ:TSLA) has won a bid to reverse a 2017 class action lawsuit filed by the company's African American workers over alleged racial bias at the Fremont, California assembly plant.

Over 6,000 Workers Cannot Sue

A California state judge ruled that over 6,000 workers at the assembly plant cannot sue, as many of the 200 workers set to testify at next year's trial against the automaker over alleged racial harassment were unwilling to do so, Reuters reported on Monday.

The Judge, in the ruling, said that the experiences of a smaller group of workers could not be applied to the entire class, reversing the 2024 decision to certify the lawsuit as a class action against Elon Musk's EV giant.

The lawyer for the plaintiffs, Lawrence Organ, said that most of the randomly chosen workers testifying were low-income and could not afford to miss work. The plaintiffs allege racial harassment at the facility in the form of targeted slurs, graffiti and nooses hung at their workstations.

Tesla's Multiple Lawsuits

The news comes as Tesla was in the midst of another proposed class action lawsuit accusing the automaker of favoring foreign visa holders over U.S. citizens in hiring and firing decisions, which plaintiffs allege allows the company to pay lower wages to its workforce.

Tesla also lost a bid to dismiss another class action lawsuit against the company over allegedly misleading owners about the Full Self-Driving (FSD) system's capabilities.

Meanwhile, Tesla has also sued the North Dakota Department of Transportation over its refusal to allow the company to open showrooms in Fargo and Bismarck, citing a law that prohibits manufacturers from directly selling vehicles to customers.

Tesla scores well on Momentum and Quality metrics, while offering satisfactory Growth, but poor Value. Tesla also has a favorable price trend in the Medium and Long term. For more such insights, sign up for Benzinga Edge Stock Rankings today!

Price Action: TSLA jumped 0.30% to $410.13 during after-hours trading after it surged 1.13% to $408.92 at the end of the regular trading session, according to Benzinga Pro data.

Check out more of Benzinga's Future Of Mobility coverage by following this link.

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Posted In: TSLA

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