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Scan for outdated or missing drivers - takes under a minuteDriver Scan →Repair Windows errors before they cause bigger problemsFix Now →Tesla and former contract worker Owen Diaz settled his individual racial-discrimination case in March 2024, but the settlement amount was not disclosed. The $3.175 million figure from the 2023 retrial was a jury award—not the reported settlement payment. Tesla’s June 30, 2026 filing still listed separate California and federal agency cases as pending.
What was settled—and what was not disclosed?
Diaz and Tesla reached a confidential settlement resolving all claims in Diaz’s lawsuit in March 2024. The agreement was described in public reporting as final and binding, but its terms were not disclosed. Neither the last jury award nor any earlier award establishes how much Diaz received under the settlement. The Associated Press reported the settlement; Tesla also disclosed it in its 2024 Form 10-Q.
What was Diaz’s case about?
Owen Diaz was a contingent worker assigned to Tesla’s Fremont, California, factory in 2015–2016. He alleged that he experienced racial harassment and that Tesla failed to stop it. His federal lawsuit included claims under 42 U.S.C. § 1981 and California law. These were Diaz’s allegations; the jury separately made findings in his case. In its post-trial order, the court denied Tesla’s motions challenging liability and seeking a new trial, while reducing the damages award. U.S. District Judge William Orrick wrote, “The evidence was disturbing.” Read the court’s April 13, 2022 post-trial order.
How did the jury awards change?
The case had three different published jury-award figures before the settlement. The first was reduced by the judge; a retrial then produced a further, lower award.
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| Stage | Amount and breakdown | What it represents |
|---|---|---|
| October 4, 2021 jury verdict | $136.9 million total: $6.9 million compensatory and $130 million punitive damages | The initial jury award, as itemized in the court’s post-trial order and reported by Tesla in its 2024 Form 10-Q. |
| April 13, 2022 remittitur | $15 million total: $1.5 million compensatory and $13.5 million punitive damages | The amount after the judge reduced the initial award; it was not the final outcome of the litigation. |
| April 3, 2023 retrial verdict | $3.175 million | The retrial jury’s award, reported by Tesla in its 2024 Form 10-Q. Diaz and Tesla appealed and cross-appealed before reaching settlement. |
| March 2024 settlement | Amount not disclosed | The confidential agreement resolving Diaz’s claims; the public sources do not state the payment or other terms. |
The $3.175 million retrial award is sometimes rounded in news coverage to $3.2 million. It should not be described as the settlement amount. Tesla’s 2024 Form 10-Q reports the award history and settlement; the court order gives the compensatory and punitive breakdown for the first two figures.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Did the settlement end Tesla’s other racial-discrimination cases?
No. Diaz’s individual lawsuit was separate from proceedings brought by the California Civil Rights Department (CRD) and the U.S. Equal Employment Opportunity Commission (EEOC). Tesla’s filing for the period ending June 30, 2026 listed both agency cases as pending. At that date, Tesla said the CRD case’s first trial phase was scheduled for September 21, 2026, and the EEOC case was in discovery with no trial date set. Those are statuses and dates stated in that filing; they do not establish what happened afterward. See Tesla’s June 30, 2026 Form 10-Q.
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The EEOC’s separate 2023 lawsuit alleged racial harassment and retaliation in violation of Title VII and sought monetary and injunctive relief. Those allegations and requested remedies belong to the agency case, not Diaz’s settled lawsuit. When announcing that action, EEOC Chair Charlotte A. Burrows said, “Every employee deserves to have their civil rights respected, and no worker should endure the kind of shameful racial bigotry our investigation revealed.” That was the EEOC’s statement about its own investigation and case, not a finding in Diaz’s settled action. Read the EEOC’s September 28, 2023 announcement.
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