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US judge reduces $137 mn penalty linked to racial abuse against Tesla

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San Francisco, April 15 (IANS) Electric vehicle company TeslaAhas managed to convince a judge to slash the historic $137 million award it was supposed to pay a former employee as part of a racial abuse lawsuit to $15 million.

According to the auto-tech website Electrek, last year, a court ruled against Tesla in a case from plaintiff Owen Diaz, who worked at the company’s Fremont factory from June 2015 to May 2016 as a contract worker hired by a staffing company, about what was described as “racial abuse”.

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The jury awarded $6.9 million in damages for emotional distress and $130 million in punitive damages.

Diaz claimed he worked in an environment where “daily racist epithets” were common, and he claim Tesla did not do enough to stop it.

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Tesla defended itself against the claims and said that the $137 million award was not fair.

Now, it managed to at least reverse the award back down to $15 million.

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Though that’s not really what Tesla was aiming for, since the automaker’s lawyers were pushing to limit compensatory and punitive damages to $300,000 each, the report said.

But that might be the best Tesla can get as Diaz’s lawyers are planning to appeal the new judgment that slashed the award down to $15 million, it added.




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Kiara Advani

Kajal Aggarwal

Shehnaaz Gill

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