--- title: "Tesla Racism Payout Lowered by Almost 90 Percent" description: "A judge has apparently sided with Tesla and slashed the company's payout to an employee who experienced racism at the company's California factory." date: "2022-04-16" modified: "2022-04-16" authors: - name: "Noor Al-Sibai" job_title: "Senior Staff Writer" link: "https://futurism.com/authors/nooralsibai" url: "https://futurism.com/the-byte/tesla-racism-payout" categories: - "Advanced Transport" - "Tesla" tags: - "elon musk" - "legal" - "racism" - "tesla" - "the digest" --- # Tesla Racism Payout Lowered by Almost 90 Percent ![Elon Musk really needs to log off. ]() *\Image: Getty Images/Futurism\* ## Profound Racism A judge has sided with Tesla and slashed by almost 90 percent the electric vehicle maker's payout to a former employee who had previously been awarded $137 million for racist treatment he experienced at the automaker. In [a ruling out of a California circuit court](), a federal judge lowered former Tesla elevator operator Oscar Diaz's racial discrimination payout from that sum, awarded in October, to just $15 million, claiming that the original sum was "unconstitutionally large." In his decision, US District Judge William Orrick said that although Diaz experienced "profound" racism at the company's Fremont factory, where he was regularly called the n-word and other "daily racist epithets" that the company's human resources department subsequently ignored, the EV manufacturer should not be unduly punished with the largest racial discrimination payout in history. "Tesla argues that the compensatory damages are improperly punitive," Judge Orrick wrote in the 43-page decision on the reduction. "Tesla, again, has the principle correct: compensatory damages serve the goal of making the plaintiff whole while punitive damages punish the defendant and deter misconduct." ## Counter-Appeal In [an interview with *Reuters*](), Diaz's attorney Bernard Alexander said the former Tesla employee will be appealing the ruling. "The award of $15 million is substantial but does not come close to reflecting the harm caused to Mr. Diaz, or the reprehensibility of Tesla's conduct," Alexander told the news service. This is far from the first time Tesla has [been accused of discrimination]() or ruled against in a lawsuit of its kind, which has even [attracted the state of California's attention]() in yet another suit alleging significant racism at their Fremont factory. But it might be bad news for future Tesla employees alleging discrimination at the company — or, for that matter, any of Elon Musk's other companies, especially as he's actively [trying to buy Twitter](). **READ MORE:** [Judge finds Tesla liable to Black former worker who alleged bias, but slashes payout]() \[*Reuters*\] **More on Tesla:** *[Man Says His Tesla Got Stuck At 83 MPH On The Highway]()* ## Author At Futurism, I've often been drawn to unpacking the narratives that underlie technological, scientific and medical progress, with a special interest in areas of conflict and ambiguity that end up setting agendas and steering the fates of both elites and the hoi polloi. I'm a committed generalist, but I often find myself returning to work involving NASA and the private space sector, the effects of AI on media and society, and the mechanics of the pharmaceutical industry, with a specific focus on the spread of GLP-1 drugs like Ozempic and Wegovy. Prior to Futurism, I worked for publications ranging from Media Matters and Truthdig to Raw Story and Bustle. I'm also the author of "Myspace Scene Queens," a 2024 title in Instar Books' acclaimed "Remember the Internet" series. My work at Futurism has been cited by outlets including the New Yorker, Slate, Nieman Lab, the Verge, the MIT Technology Review, the Sunday Times, and the Daily Beast. I grew up in North Carolina, attended the University of North Carolina at Asheville, and now live in Brooklyn, New York. In my free time, I'm an avid reader and music fan; you can probably find me at a local poetry reading, concert, underground rave, or DJ set. I'm the proud parent of an ineffable orange cat named Mee-Mow. ### Author social links [Bluesky]()