Eye-Popping Tesla Racism Verdict Poised to Be Cut If Appealed

Tesla Inc. may end up paying only about half of the stunning $137 million verdict a jury awarded a former contractor over racism at one of its auto plants, if it appeals.

Billionaire Elon Musk’s electric automaker has been ordered to pay punitive damages almost 20 times as large as the actual damages former contract worker Owen Diaz won -- well in excess of a typical punishment, according to law professor Michael Selmi.

Punitive damages are generally calculated as 9 to 1 or 10 to 1 when compared to actual damages, said Arizona State University’s Selmi. Diaz was awarded ...