A Tesla Inc investor accused the electric-vehicle maker\u2019s officers and directors in a lawsuit of allowing a \u201ctoxic workplace culture\u201d to fester at the company.<\/p>\n
Chief executive officer Elon Musk and others who run the world\u2019s largest electric-vehicle maker breached their fiduciary duty by fostering an environment of discrimination and harassment, exposing Tesla to millions of dollars in potential liability, according to the complaint filed Thursday by stockholder Solomon Chau in federal court in Austin, Texas.<\/p>\n
\u201cThis toxic work environment has gestated internally for years, and only recently has the truth about Tesla\u2019s culture emerged, leading to legal action from government regulators and private parties alike,\u201d Chau said in the complaint. \u201cTesla\u2019s toxic workplace culture has caused financial harm and irreparable damage to the company\u2019s reputation.\u201d<\/p>\n
Tesla is fighting a suit by California\u2019s Department of Fair Employment and Housing over racial discrimination and harassment, after the agency found a widespread pattern of mistreatment of Black workers at the electric car-maker\u2019s factory near San Francisco. The company also faces complaints from several female employees that sexual harassment is rampant at the Fremont factory.<\/p>\n
Tesla didn\u2019t immediately respond to a request for comment. It said in a blog post in February that the DFEH complaint is \u201cmisguided.\u201d<\/p>\n
Musk \u201ceither knew, was reckless, or was grossly negligent in disregarding the illegal activity of such substantial magnitude and duration,\u201d Chau claimed in his complaint.<\/p>\n
Chau faulted the company\u2019s board for the defeat of shareholder proposals aimed at addressing workplace issues at Tesla.<\/p>\n
Shareholder activists haven\u2019t been successful so far in pushing Tesla\u2019s board to adopt more transparency about its use of arbitration to resolve complaints about sexual harassment and racial discrimination.<\/p>\n
The case is Chau v. Musk, 1:22-cv-00592, US District Court, Western District of Texas (Austin).<\/p>\n