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Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallTesla and former factory worker Owen Diaz reached a confidential settlement in March 2024, ending Diaz’s individual lawsuit over alleged racial harassment at Tesla’s Fremont, California, factory. The settlement amount was not disclosed. It was separate from other racial-discrimination proceedings against Tesla, which the company still listed as pending in a June 30, 2026 filing.
What Tesla settled—and what remains unknown
The agreement resolved all claims in Diaz’s individual case, according to Tesla’s 2024 Form 10-Q and reporting on the filed agreement. The agreement was described as final and binding, but its financial terms were not made public. The available filings and reporting do not establish how much Diaz received.
The last jury award in the case was $3.175 million, following a 2023 retrial. That figure is not the settlement amount: the confidential agreement came later, and its terms were not disclosed. Tesla’s 2024 Form 10-Q reports the settlement and the earlier award history.
What Diaz alleged and what the jury decided
Diaz was a contingent worker assigned to Tesla’s Fremont factory in 2015 and 2016. He alleged that he was subjected to racial harassment and that Tesla failed to stop it. His federal lawsuit included claims under 42 U.S.C. § 1981 and California law.
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The case went to trial, and a jury found in Diaz’s favor. In an April 13, 2022 post-trial order, U.S. District Judge William Orrick denied Tesla’s motions challenging liability and seeking a new trial, while reducing the damages. The judge wrote, “The evidence was disturbing.” The allegations and findings in this individual case should not be confused with allegations in separate agency lawsuits.
How the damages changed through trial and appeal
The published figures describe different stages of litigation—not the eventual confidential settlement. The federal court order gives the compensatory and punitive breakdowns for the first award and the judge-reduced award; Tesla’s 2024 Form 10-Q reports the amounts at each stage.
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| Stage | Amount and breakdown | What it represents |
|---|---|---|
| October 4, 2021 jury verdict | $136.9 million: $6.9 million compensatory and $130 million punitive damages | The initial jury award, later reduced by the judge. |
| April 13, 2022 remittitur | $15 million: $1.5 million compensatory and $13.5 million punitive damages | The award after the judge reduced damages. |
| April 3, 2023 retrial verdict | $3.175 million | The jury award after a retrial; this is not the settlement payment. |
| March 2024 settlement | Amount and terms not disclosed | The parties settled Diaz’s claims after appeals and cross-appeals had been filed. |
The court’s April 13, 2022 post-trial order explains the first award and remittitur. Tesla’s Form 10-Q reports the 2023 retrial award and the 2024 settlement. News coverage sometimes rounds the retrial verdict to $3.2 million; the reported figure in Tesla’s filing is $3.175 million.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Did the settlement end Tesla’s other racial-discrimination cases?
No. Diaz’s lawsuit was distinct from proceedings brought by California’s Civil Rights Department (CRD) and the U.S. Equal Employment Opportunity Commission (EEOC). Tesla’s filing for the quarter ended June 30, 2026 continued to list both cases as pending.
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- California CRD case: Tesla said the first phase of trial was scheduled for September 21, 2026.
- EEOC case: Tesla said the case was in discovery and had no trial date set.
Those descriptions and dates reflect Tesla’s filing as of June 30, 2026; they do not establish what happened after that date. The EEOC’s 2023 complaint separately alleged racial harassment and retaliation under Title VII and sought monetary and injunctive relief. Those are agency allegations in another case, not claims resolved by Diaz’s settlement. When the EEOC announced its lawsuit, Chair Charlotte A. Burrows said, “Every employee deserves to have their civil rights respected, and no worker should endure the kind of shameful racial bigotry our investigation revealed.” That was the agency’s stated position, not a finding in Diaz’s settled case.
Sources: Tesla’s Form 10-Q for the quarter ended June 30, 2026; the EEOC’s September 28, 2023 announcement.
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