Tesla Judge Says $137 Million Racism Verdict Is ‘Extremely High’

A judge signaled he’ll probably cut a jury’s award of $137 million in damages to a former Tesla Inc. contract worker over racial abuse in its northern California factory.

The October award to Owen Diaz by jurors in San Francisco federal court is believed to be one of the largest in U.S. history for an individual plaintiff in a racial discrimination case.

U.S. District Judge William Orrick on Wednesday said he was “troubled” that the $6.9 million jurors awarded as emotional distress damages “may be untethered to the distress to which Mr. Diaz and his witnesses testified.” Moreover, punitive damages ...