Tesla settles with Black worker after $3.2 million verdict in racism lawsuit

Enlarge / Tesla cars sit in a parking lot at the company’s factory in Fremont, California on October 19, 2022. (credit: Getty Images | Justin Sullivan)

Tesla has settled with a Black former factory worker who won a $3.2 million judgment in a racial discrimination case, a court filing on Friday said.

Both sides were challenging the $3.2 million verdict in a federal appeals court but agreed to dismiss the case in the Friday filing. The joint stipulation for dismissal said that “the Parties have executed a final, binding settlement agreement that fully resolves all claims.”

Tesla presumably agreed to pay Diaz some amount less than $3.2 million, ending a case in which Diaz was once slated to receive $137 million. As we’ve previously written, a jury in US District Court for the Northern District of California ruled that Tesla should pay $137 million to Diaz in October 2021.