Tesla Accuses Agency of ‘Underground’ Rulemaking in Bias Fight

Tesla Inc. is urging a court in California to pause ongoing litigation with the state’s Department of Fair Employment and Housing, telling a judge on Wednesday that the automaker aims to hold the agency “accountable” for its misconduct.

In February, the state agency alleged widespread discrimination and harassment against Black factory workers at Tesla’s Fremont, Calif., factory. The complaint described a “racially segregated” workplace, and detailed offensive language used or witnessed by supervisors and managers, as well as racist graffiti in bathrooms, the break room, and on machinery.

Tesla pushed back against the allegations, calling them “misguided,” and later accused ...