Apr 19, 2022 - Economy & Business

Tesla reveals EEOC has "open investigation" into company

Tesla CEO Elon Musk speaks during the official opening of the new Tesla electric car manufacturing plant on March 22, 2022 near Gruenheide, Germany.
Tesla CEO Elon Musk during the official opening of the new Tesla electric car manufacturing plant near Gruenheide, Germany, in March. Photo: Christian Marquardt - Pool/Getty Images

The U.S. Equal Employment Opportunity Commission (EEOC) has an ongoing investigation into Tesla, the electric automaker disclosed in a filing on Monday, per Bloomberg.

Driving the news: Tesla made the disclosure as it asked a judge to suspend a lawsuit filed last February by the California Department of Fair Employment and Housing (DFEH) accusing the company of systemic racial discrimination at its facilities in the state. Tesla denies the allegations and accused the DFEH of abusing its power with the suit.

  • Tesla said in the filing that the EEOC already had an "open investigation" into the firm before the DFEH filed its suit, according to Bloomberg. It was not immediately clear what this investigation concerned.

What else they're saying: Tesla alleged that the DFEH had exceeded its legal authority in the suit and used its litigation "as a bullying tactic and to advance its turf war" with the EEOC — after the state watchdog challenged the federal agency in its harassment lawsuit settlement with Activision Blizzard last October.

  • "DFEH ignored its statutory obligations and rushed to file suit against Tesla, perhaps for a quick publicity grab, perhaps out of fear that the EEOC would be the first to settle with Tesla," Tesla's lawyers said in the filing, according to Bloomberg.
  • Representatives for Tesla, the DFEH and EEOC did not immediately respond to Axios' request for comment.

Editor's note: This a breaking news story. Please check back for updates.

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