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Wednesday, May 22, 2024

Tesla sued by second female worker over sexual harassment case

Tesla Inc subjects female workers to "nightmarish" conditions of rampant sexual harassment at its main factory, and supervisors turn their backs when complaints are brought, according to a new lawsuit. The lawsuit alleges that Tesla and other defendants failed to prevent and take corrective actions over sexual harassment and retaliation.

Tesla Inc is being sued by a second female employee for sexual harassment in less than a month, with the two lawsuits alleging a “hostile work environment” against women at the car maker’s US factory.

Erica Cloud, a Tesla assembly line worker, accused defendants including her former manager of “continuous and pervasive” sexual harassment in a lawsuit filed in Alameda County Superior Court in California on Wednesday (Dec 8).

She alleges the manager hugged and massaged her while making crude and suggestive remarks. She said she is now experiencing retaliation from other managers after complaining to Tesla’s human resources team about the misconduct.

Read more: Tesla’s market value falls below $1 trillion after Elon Musk tweets

Tesla and other defendants subjected her to “a hostile work environment stemming from animus towards her gender, sexual harassment,” the lawsuit says.

What does the lawsuit say?

The lawsuit alleges that Tesla and other defendants failed to prevent and take corrective actions over sexual harassment and retaliation.

Tesla did not immediately respond to Reuters’ emailed questions about the lawsuit. Tesla does not have a public relations department.

On Nov 18, another female Tesla worker, Jessica Barraza, filed a lawsuit against Tesla, alleging rampant sexual harassment at its main factory in Fremont, California.

“The pervasive culture of sexual harassment, which includes a daily barrage of sexist language and behavior, including frequent groping on the factory floor, is known to supervisors and managers and often perpetrated by them,” the lawsuit alleges.

Read more: Tesla EV sales boom in Singapore, pushing rivals’ models off the streets

In October, a Black contract worker won a US$137 million (S$187 million) jury award over workplace racism against Tesla. Tesla shareholders subsequently approved a proposal to ask it to publish a report fully accessing the company’s diversity and inclusion effort.

JPMorgan sues Tesla for $162m

Earlier, JPMorgan has sued Tesla for $162.2m, accusing Elon Musk’s electric car company of “flagrantly” breaching a 2014 contract relating to stock trading options that Tesla sold to the bank.

The options, or warrants, give the holder the right to buy a company’s stock at a set “strike” price and date. The suit, filed in a Manhattan federal court, centres on a dispute over how JPMorgan repriced its Tesla warrants as a result of Musk’s notorious 2018 tweet that he was considering taking the carmaker private.

Read more: Tesla increases profits to a record high of 389%

It is unusual for a major Wall Street bank to sue such a high-profile client, although JPMorgan has done relatively little business with Tesla over the past seven years, according to Tesla’s filings and Refinitiv data.


Reuters with additional input by GVS