Tesla lawyer Tyree Jones argued in opening statements that California’s case attacks a way some Black people greet, show respect to, or express affection for one another. That was an argument about some in-group use—not a claim that non-Black coworkers or managers have a right to direct the slur at Black employees. The state’s broader discrimination case is still being tried, and the allegations have not been decided.
What did Tesla’s lawyer say?
At the September 21, 2026 opening of California’s civil case against Tesla, lawyer Tyree Jones argued that the state was attacking a way some Black people use the N-word among themselves. The Guardian reported him saying, “By this action, the state of California attacks the way many Black people greet each other,” and characterizing the state’s position as “offensive.” The Guardian’s trial report describes these as remarks made in opening argument, not findings by the court.
The distinction matters: the argument reported was about some in-group usage among Black people, not a general permission for non-Black employees or managers to use the slur toward Black coworkers. Nor does the argument establish that every workplace use is harmless. A September 30 fact-check found that viral summaries overstated what Jones was reported to have argued. It also noted that no opening-statement transcript had been published, so an exact count of how often Jones used the slur is not established. The Crosscheck’s fact-check distinguishes Jones’s reported argument from a witness’s separate allegation about a coworker.
What is California’s case against Tesla about?
The plaintiff is California’s Civil Rights Department (CRD), formerly the Department of Fair Employment and Housing. The agency filed the state action in 2022 after an approximately three-year investigation. Its claims reach beyond the courtroom remarks: CRD alleges racial harassment and racist writing, unequal pay, labor-intensive or segregated assignments, harsher discipline, and retaliation against workers who complained. Those are disputed allegations, not established findings. CRD’s May 27, 2026 case update says a judge rejected Tesla’s latest effort to have the suit thrown out and factual questions remained for a jury; trial opening statements followed in September.
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CRD’s reported pay analysis
CRD says its analysis of worker pay data from June 2018 through June 2024 found that Black workers’ monthly compensation was $1,533 lower than white workers’. That figure is the department’s reported analysis, not a judicial finding that Tesla violated the law. In its May 2026 release, CRD Director Kevin Kish said: “Black workers are paid less for their work. They are subjected to racist slurs. They face threats of being fired for speaking out.” This is Kish’s statement of the agency’s position.
How the state case differs from the federal EEOC lawsuit
The CRD action is not the only government case involving Tesla, but it should not be conflated with the separate federal lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC announced its case in September 2023. Its complaint alleges that, since at least 2015, Black workers at Tesla’s Fremont manufacturing facilities faced racial abuse, stereotyping, hostility, and retaliation. The agency said it sought compensatory and punitive damages, back pay, and workplace reforms. These remain allegations in a separate federal proceeding. The EEOC’s announcement summarizes that case.
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What is the trial’s status?
As of October 4, 2026, the Alameda County Superior Court trial was ongoing. The Guardian reported it was expected to continue through the end of October; the cited coverage reported no verdict or final finding of liability. Any later ruling, remedy, or penalty should be checked against current court records and reliable reporting.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why the Diaz case is separate
Former worker Owen Diaz’s litigation is another distinct matter, not the state case now on trial. Treating the cases as interchangeable can obscure who brought each action and what is actually before the court. A 2026 California Court of Appeal opinion, Smith v. Superior Court, addressed a procedural question in related worker litigation: under the circumstances before it, the trial court erred by requiring workers alleging related harm from a common policy or practice to file separate actions. The opinion recounts allegations from the Vaughn class action but does not decide whether those allegations are true. The appellate opinion is about joinder procedure, not a verdict in CRD’s case against Tesla.
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