Tesla Race Bias Damages Award Sets Up Another Post-Trial Fight

A California federal jury’s decision giving $3.2 million to a former Tesla Inc. contractor in a long-running racial discrimination case opened a new legal question over whether the amount awarded for punitive damages in the case is in line with judicial precedent.

The verdict reached earlier this week in the US District Court for the Northern District of California has cleared the stage for a post-trial battle over the award—98% less than the “staggering” $137 million a different jury awarded to Owen Diaz two years ago.

Diaz, who is Black, sought a retrial on damages after the trial judge in ...