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Sunday, October 11, 2026

Tesla Poised to Lose Bid to Halt California Racial Bias Suit (1) - Bloomberg Law

A state judge said Tuesday he will likely deny Tesla Inc.‘s request to pause a lawsuit filed by California over racial discrimination allegations at a factory outside San Francisco.

California’s Department of Fair Employment and Housing sued Tesla in February, but the automaker has challenged the agency, claiming it failed to follow its statutory guidelines before filing the suit. Tesla on Tuesday also filed a petition with the Office of Administrative Law for a determination that DFEH’s actions violated the state’s Administrative Procedures Act.

In a tentative ruling, Alameda County Superior Court Judge Evilio Grillo refused to put the state litigation on hold while Tesla awaits a decision on its OAL petition. Grillo also said the state appeared to have complied with the mandatory dispute resolution process before it brought the lawsuit against the company.

Tesla is free to proceed with its petition to the OAL, Grillo said, but that office’s decision to side with or against Tesla “might have no effect on the case.”

Grillo also rejected Tesla’s argument that DFEH must go back to the drawing board with its investigation, this time using new counsel.

Tesla has pushed back against the DFEH lawsuit by accusing the agency of exceeding its powers.

DFEH initiates investigations of alleged misconduct under the Fair Employment and Housing Act without...



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