Tesla, the electric vehicle maker, has reached a settlement in a racial discrimination lawsuit filed by Owen Diaz, a former Black employee who worked as an elevator operator at its Fremont, California factory in 2015. A federal jury had previously awarded Diaz $3.2 million in damages.

Diaz's attorneys from the California Civil Rights Law Group confirmed the settlement, stating that the parties had reached an amicable resolution of their disputes. However, the terms of the settlement remain confidential.

Attorney Lawrence Organ, who represented Diaz, emphasized the courage it took for his client to stand up against a company of Tesla's magnitude. Organ also pointed out that although the litigation chapter of Diaz's life has concluded, there is still work to be done at Tesla.

While Diaz's case is now resolved, the same law firm is also representing current and former Tesla employees in a proposed class-action lawsuit, Marcus Vaughn v. Tesla Inc. This lawsuit alleges that racial discrimination and harassment against Black workers have persisted at the company. However, Diaz is not involved in this litigation.

Organ criticized Tesla CEO Elon Musk for not making a clear statement condemning such discriminatory behavior within the company. He expressed confusion as to why, despite the significant litigation and verdicts against Tesla, the conduct of racial discrimination was not being addressed. Organ called attention to the stark contrast between Tesla's vision of the future and the past Jim Crow era that such behavior represents.

In addition to Diaz's case, the U.S. Equal Employment Opportunity Commission (EEOC) has also sued Tesla, accusing the automaker of tolerating widespread racial harassment and subjecting Black employees to retaliation for opposing such behavior. Tesla has firmly denied these allegations, calling them a false narrative and emphasizing their commitment to equal employment opportunity.

The settlement with Diaz comes at a time when Elon Musk is facing criticism for his handling of hate speech on his social media platform, X (formerly Twitter). His recent posts, including unverified claims of cannibalism in Haiti and smearing Haitian migrants, have sparked outrage. Musk has also faced allegations of sharing misinformation about racial minorities' intelligence and physiology.

Tesla, which does not have a traditional PR office in North America, has not responded to requests for comment on the settlement.

Overall, the resolution of this lawsuit underscores the need for continued efforts to combat racial discrimination and harassment in the workplace, urging companies to take proactive measures to ensure a safe and inclusive environment for all employees.