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Tesla attorney Tyree P. Jones Jr. argued that context matters when the court considers use of the N-word, distinguishing friendly use among Black people from a white person directing the slur at a Black person. The argument came in an ongoing California Civil Rights Department (CRD) bench trial over allegations of race discrimination at Tesla. It is a party’s argument, not a finding by the judge.
What Tesla’s lawyer said
In his opening argument, Jones said the state’s presentation of the N-word lacked context. He distinguished use among Black people in a friendly manner from a white person directing the word at a Black person. Complex quoted him telling Judge Peter Borkon: “This trial is not about the N-word — the N-word is not on trial here.”
That distinction matters when interpreting the argument. Reporting describes Jones as defending the relevance of some friendly use among Black people; it does not support the claim that he asserted a right for non-Black coworkers or managers to direct the slur at Black workers. The Crosscheck’s September 30, 2026 fact-check also said it found no published account establishing how many times Jones used the word in his opening.
What the California case is about
California Civil Rights Department v. Tesla Inc., Alameda County Superior Court No. 22CV006830, is a state civil-rights case, not a criminal prosecution or a trial of the word itself. CRD says it sued Tesla in 2022 after about three years of investigation. The department alleges that Black employees faced racial harassment, discrimination, and retaliation, among other claims.
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CRD alleges that racial slurs were pervasive, including use in the presence of or by supervisors and managers, and says workers used “plantation” to refer to Tesla’s Fremont factory. Those descriptions are allegations, not findings in this case. The state’s claims also concern workplace treatment beyond slurs:
- CRD says its case includes job assignments, promotion, discipline, and retaliation.
- In its 2026 account of worker pay data covering June 2018 through June 2024, CRD reported that Black workers received $1,533 less in monthly compensation than white workers. That is the agency’s analysis in a live case, not an adjudicated finding.
How the parties frame the dispute
The central dispute is broader than how to interpret one word in isolation. The parties differ over whether the state can prove a company-wide pattern, how to assess the context of alleged slurs, and whether Tesla responded appropriately to complaints.
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| Issue | CRD’s position | Tesla’s position |
|---|---|---|
| Pattern or practice | CRD alleges a broader pattern of harassment and discrimination affecting Black employees. | Bloomberg Law reported that Jones argued the state lacked suitable evidence to show racial harassment was Tesla’s standard operating procedure. |
| Context of slurs | The state alleges pervasive use of racial slurs, including in the presence of or by supervisors and managers. | Jones argued that context matters and distinguished friendly use among Black people from a white person directing the slur at a Black person. |
| Complaints and response | CRD’s claims include alleged harassment and retaliation. | Jones argued that Tesla’s human-resources and employee-resources teams responded to complaints. |
These are the parties’ allegations and arguments as reported during the proceeding. The judge has not issued a merits finding in the case as of October 3, 2026.
Trial status
The bench trial opened September 21, 2026, before Judge Peter Borkon, according to Bloomberg Law. A bench trial is decided by the judge rather than a jury. Trial coverage described proceedings as underway on October 3, 2026; no verdict or finding on liability had been reported by that date.
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How this differs from other Tesla cases
Owen Diaz’s federal case is separate from CRD’s state case. The Associated Press reported that a jury awarded Diaz $137 million in 2021, the judge reduced the award to $15 million, a later retrial resulted in $3.2 million in damages, and Diaz and Tesla settled in 2024 for an undisclosed amount. Those events do not determine the outcome of the CRD trial.
A June 30, 2026 California Court of Appeal opinion in Smith v. Superior Court addressed whether plaintiffs alleging harm from a common policy or practice could join claims in one action. It concerned former members of related Vaughn worker litigation and addressed procedure, not whether the allegations in CRD’s case against Tesla are true.
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