Tesla and Owen Diaz, a Black former worker at the company’s Fremont, California, factory, settled Diaz’s racial-discrimination case in March 2024. The settlement amount and terms were not disclosed. The $3.2 million figure refers to the jury’s 2023 award before the settlement—not the amount Diaz received.
What the $3.2 million figure means
At a 2023 retrial limited to damages, a federal jury awarded Diaz $175,000 in compensatory damages and $3 million in punitive damages, for a total of $3.175 million—commonly rounded to $3.2 million. The award is recorded in the U.S. District Court for the Northern District of California’s October 4, 2023, filing.
- Compensatory damages: $175,000, awarded to compensate for harm.
- Punitive damages: $3 million, a separate component of the jury’s award.
That verdict and the later settlement are distinct legal outcomes. The public filing described by the Associated Press did not disclose the settlement amount or other terms, so the $3.175 million verdict cannot be treated as the sum Diaz ultimately received. AP reported that the filing called the agreement a “final, binding settlement agreement that fully resolves all claims.”
How the case reached the 2023 retrial
Diaz filed suit in 2017. In 2021, a jury awarded him $137 million. The judge later reduced that award to $15 million; Diaz sought a new trial rather than accept the reduced amount. A second jury then considered damages in 2023 and returned the $3.175 million award. The Associated Press and a November 2023 Reuters report carried by Investing.com described this sequence.
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After the 2023 verdict, the parties filed post-verdict motions and cross-appeals. They resolved the claims in March 2024, before those appeals produced a publicly reported final judgment on the amount. The available reporting does not say the settlement included an admission of liability.
What Diaz alleged
Diaz alleged that during roughly nine months working at Tesla’s Fremont factory, coworkers repeatedly used racial slurs and subjected him to other racist abuse, and that Tesla failed to stop the conduct after he complained. Those details describe allegations made in the case and reported by the Associated Press; the confidential settlement did not publicly establish every alleged incident.
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What is—and is not—public about the settlement
The reported March 2024 filing says the agreement resolved all claims, but does not reveal the payment amount or other terms. Public information therefore supports saying Tesla and Diaz settled; it does not support stating how much Diaz received, whether the settlement matched either jury award, or whether Tesla admitted liability.
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