Tesla Investor Files Suit Against Elon Musk

A Tesla Inc. investor accused the electric-automobile maker's officials and administrators in a lawsuit of permitting a “toxic workplace culture” to fester in the company.

CEO Elon Musk and others who run the world's biggest electric-automobile maker breached their fiduciary responsibility with the aid of using fostering surroundings of discrimination and harassment, exposing Tesla to hundreds of thousands of greenbacks in capacity liability, in keeping with the grievance filed Thursday with the aid of using stockholder Solomon Chau in federal court in Austin, Texas.

Tesla is fighting a lawsuit alleging racial discrimination and harassment by California’s Department of Fair Employment and Housing after discovering a widespread pattern of black worker abuse at an electric car maker's factory near the San Francisco area. The company also faces complaints from female employees that sexual harassment is widespread at its Fremont plant.

Musk "either knew, was reckless, or was grossly negligent in disregarding the illegal activity of such substantial magnitude and duration," Chau claimed in his complaint. Chau blamed the company's board for rejecting shareholder proposals aimed at addressing Tesla's workplace problems.

Shareholder activists have not been successful in encouraging Tesla's board to provide greater transparency in the use of arbitration to resolve sexual harassment and racist complaints.